SH DASHANEMA MANGAL KARYALAYA MANDAL,PUNE vs. COMMISSIONER OF INCOME-TAX, EXEMPTION, PUNE

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.

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 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 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.