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Income Tax Appellate Tribunal, ‘A’ BENCH, PUNE
IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, PUNE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No. 542/PUN/2021
Shri Dashanema Mangal Karyalaya Mandal 34 Bhau Maharaj Lane Shukrawar Peth, PUNE – 411 002 PAN: AAJTS 1830 R Appellant Vs. The Commissioner of Income-tax (Exemption), Pune. Respondent Appellant by : Shri Kishor Phadke Respondent by : Shri Hitendra B. Ninawe Date of Hearing : 23-08-2022 Date of Pronouncement : 24-08-2022
ORDER PER PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This appeal preferred by the assessee emanates from order of the ld. Commissioner of Income Tax Exemption, Pune dated 22-04-2019 as per the following grounds of appeal.
“1. The ld. CIT-Exemption erred in law and on facts in not granting registration/s 12AA of IT Act, 1961. 2. The ld. CIT-Exemption erred in law and on facts in not granting sufficient opportunity to the appellant to submit the details/information. 3. The appellant craves leave to add, alter, clarify, explain, modify, delete any of the grounds of appeal, and to seek any just and fair relief.” 2. The grievance of the assessee is non-granting of registration u/s 12AA of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) by the revenue authorities. At the very outset, we find that this appeal is time-barred by 854 days. The assessee has filed an Affidavit as well as condonation of delay petition. The ld. D.R submitted that part of the delay is during the Covid-19 pandemic outbreak period. The other part is before Covid-19 pandemic outbreak period. Therefore, he strongly objected for condonation of this delay.
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We find when culmination of the entire period goes into the Covid-19 pandemic outbreak period, then such kind of rigid action is not justified. Hence, following the judgment of the Hon‟ble Supreme Court in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC) read with judgment in cognizance for Extension of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021 since the delay was covering pandemic outbreak period, we condone the same and the case is heard on merits.
The brief facts are that the assessee is a charitable trust and is formed vide trust deed dated 26-11-1952. The trust is engaged in the activities relating to organizing religious and social service activities. Many people are benefited from food donation, distribution of scholarships, etc. The trust is about 69 years old and has also organised various religious events thereby contributing to the socio-economic cultural improvements in the society helping needy students for their education and various other charitable activities as per the objects of the trust. When we perused the order u/s 12AA of the Act by the ld. CIT Exemption at para 4 it is mentioned that the assessee-applicant trust has not uploaded/submitted any details which have been called for by the revenue authorities in the ITBA portal. The ld. CIT Exemption also observed that even on perusal of the submission uploaded along with 10A application, the assessee has not submitted any details of charitable activities carried out along with proof, copy of bank statements, declaration under section 13 clause (1) sub-clause (c) and section 11 clause (5) of the Act and the details of donations received during the year as per the provisions of section 12AA clause (1) sub- clause (a) of the Act. Therefore, for non-furnishing of these details, the ld. CIT Exemption could obviously not satisfy himself regarding the charitable nature of
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the activities as well as genuineness of the activities of the trust. Hence, registration application u/s 12AA of the Act was rejected.
In this regard, the ld. Counsel for the assessee submitted that it is an accepted fact that these details as seen from the order of the ld. CIT Exemption were not submitted before the department. He made a prayer before the Bench for one final opportunity so that the matter may be remanded back to the file of the CIT Exemption and the assessee would now submit before him all the relevant details as called for by him and represent its case on merits. The ld. D.R did not raise any objection if the matter is remanded back to the file of the ld. CIT Exemption for fresh adjudication as per law.
Having heard the parties, we appreciate the fact as evident from the findings of the ld. CIT Exemption the relevant details which are required to be filed for the purposes of grant of registration u/s 12AA were not furnished by the assessee before the Department. This is the reason for which the application for grant of registration u/s 12AA was rejected by the ld. CIT Exemption. We also appreciate the fact that in the open Court, the ld. Counsel for the assessee conceded that they have not filed any details as called for before the ld. CIT Exemption and have not uploaded either in the ITBA portal of the department. In this scenario, the ld. Counsel for the assessee has prayed for one final opportunity whereby he would submit all the relevant details called for, for the purposes of registration u/s 12AA before the ld. CIT Exemption. The ld. D.R has also not raised any objection if the matter is remanded back. The spirit of Income-tax legislation being a welfare legislation the preponderance of rights and the benefit of doubt are always tilted in favour of the assessee-taxpayer wherever possible in the interest of justice. Furthermore, if the matter is
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remanded back to the file of the CIT Exemption the revenue will also not be at any loss since the matter would be re-visited by the revenue authorities as per law. With these observations we set aside the order of the ld. CIT Exemption and remand the matter back to his file with a direction to the assessee to place before him all the relevant details/documents and represent their case on merits and the ld. CIT Exemption shall re-adjudicate the issue as per law complying with the principles of natural justice.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on this 24th day of August 2022 sd/- sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated, the 24th August , 2022 Ankam
Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT – Exemption, Pune. 5. D.R. ITAT „A‟ Bench 5. Guard File BY ORDER,
/// TRUE COPY /// Sr. Private Secretary ITAT, Pune.
5 ITA No.542/PUN/2021 Shri Dashanema Mangal Karyalaya Mandal, 1 Draft dictated on 23-08-2022 Sr.PS/PS 2 Draft placed before author 24-08-2022 Sr.PS/PS 3 Draft proposed and placed before the JM/AM second Member 4 Draft discussed/approved by second AM/JM Member 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 24-08-2022 Sr.PS/PS 7 Date of uploading of order 24-08-2022 Sr.PS/PS 8 File sent to Bench Clerk 24-08-2022 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order