SHRI STHANKVASI JAIN SANGH CLERK COLONY, INDORE,INDORE vs. CIT EXEMPTION BHOPAL, BHOPAL
Facts
The assessee, a society, applied for regular registration under Section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application and cancelled the provisional registration due to alleged non-compliance of document submission, including details of donations and corpus fund. The assessee appealed this order.
Held
The Tribunal noted that the assessee regretted the non-compliance and assured that the required donation details were now available and would be submitted. The Tribunal found it just and fair to set aside the impugned order and remand the matter back to the CIT(E) for a fresh decision on a denovo basis after the assessee submits the required details.
Key Issues
Whether the rejection of registration/cancellation of provisional registration by the CIT(Exemption) was justified on the grounds of non-submission of certain documents, and if not, what is the appropriate course of action.
Sections Cited
253, 1961, 12A, 12AB, 10AB, 10AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT & SHRI PARESH M JOSHIMEMBER
आदेश / O R D E R
Per Paresh M Joshi, J.M.:
This is an appeal filed by the assessee Under Section 253 of
the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’ for
sake of brevity) before this Tribunal. The assessee is aggrieved by
the order bearing Number ITBA/EXM/F/EXM45/2023-
24/1061949534(1)dated 04.03.2024 of the Ld. CIT(Exemption),
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Shri Sthankvasi Jain Sangh ITA No. 431/Ind/2024 AY 2022-23 Bhopal, M.P. which is hereinafter referred to as the “impugned
order”.
Registry informed that there is delay of 4 days in filing the
appeal. Delay of 4 days condoned for which assessee has shown
sufficient cause. Appeal admitted and taken up for hearing.
FACTUAL MATRIX
2.1 The appellant is a Society, registered under the Madhya
Pradesh Societies Registration Act, 1973 vide certificate of Regn.
No. 03/27/01/21903/19 Dated 30/07/2019 and was
provisionally registered under Section 12A having provisional
Registration No. AAYTS3286QE20211 from AY 2022-23 to AY
2024-25 through order of CIT exemption dated 05/04/2022.
2.2 The objective of the Society is to run educational and social
and spiritual activities and also to construct and operate nursery,
primary, middle, high school, higher secondary and college at
educational level and hostels. To arrange scholarships and books
for the study of poor, weaker section and talented students of the
society. To make arrangements for treatment of low-income group
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Shri Sthankvasi Jain Sangh ITA No. 431/Ind/2024 AY 2022-23 members of society, sadhus and mahatmas when they become
unwell and working for animals and birds (for kindness to
animals), also for work related to the upliftment and welfare of
women, children and youth of the society.
2.3 The Appellant applied for regular registration under clause iii
of sub- section C of section 12AB (1) of the Act, as per the new
provision of Income Tax Act, 1961 in Form 10AB on 30
September 2023 via Ack No. 368136460300923.
2.4 Consequently, opportunity letters were issued and various
documents/details were called for, to process the said application
on 05 December 2023 but due to portal issues, assessee could
not access the same on time.
2.5 After some time when assessee got aware about the notice(s),
they submitted the response along with the documents called for
on 18 January 2024.
2.6 After that on 19 February 2024 appellant received another
notice for furnishing the information/documents of last three
financial years of donation received, details of Corpus Fund,
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Shri Sthankvasi Jain Sangh ITA No. 431/Ind/2024 AY 2022-23 details of Subscription and photos of charitable activities The
Appellant submitted the response with all available information
and document on 26 February 2024.
2.7 Suddenly on 04 March 2024 appellant received the rejection
order in Form 10AD stating that –
- address and mobile number of the Donor has not been
submitted.
- Complete address and direction from the donor or any
supporting documents of Corpus not Submitted.
- Proper details of subscriptions shown in Income &
Expenditure accounts not submitted.
2.8 The application of the assessee in Form 10AB for grant of
registration u/s 12AB is rejected and the provisional
registration/approval u/s 12AB in Form 10 AC vide URN No.
AAYTS3286QE20211 dated 05.04.2022 is also cancelled saying
non-compliance of required documents/information.
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Shri Sthankvasi Jain Sangh ITA No. 431/Ind/2024 AY 2022-23 2.9 That the aforesaid order bears Number
ITBA/EXM/F/EXM45/2023-24/1061949534(1) and same is
dated 04.03.2024 (the impugned order) supra.
2.10 That the assessee being aggrieved by the impugned order
has preferred an appeal before this Tribunal and has raised
following grounds of appeal in Form No.36 which are as under:-
“1. We have provided the details of Subscription shown in Income & Expenditure A/c during last three years with Receipt no., Amount, Date and Name which is complete in all respect. In Notice, details of Subscription shown in Income & Expenditure A/c is called for but no specific format was provided. So, appellant provided the details as per his best understanding. Confirmation as to corpus donation is also available which can be submitted now. Rejection on this ground is not fair as the activities of the trust is genuine.
Record of Hearing
3.1 The hearing in the matter took place before us on
25.03.2025, when the Ld. AR for and on the behalf of the
assessee interalia contended that “Impugned Order” of Ld.
CIT(E) is in violation of principles of natural justice and is
therefore bad in law, illegal and not proper. It deserves to be set
aside by this Tribunal in exercise of its appellate jurisdiction.
The Ld. AR fairly conceded that no doubt donation details were
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Shri Sthankvasi Jain Sangh ITA No. 431/Ind/2024 AY 2022-23 sought by Ld. CIT(E) at the material time but since the same
were not available at the material time it could not be supplied
however the same are available now and if this Tribunal is
pleased to set aside the impugned order then in the proposed
remand proceedings before CIT(E) they would submit the same
without any demur. Per contra Ld. DR for and on behalf of the
Revenue did not strongly oppose the contention of the Ld. AR and
finally left it to this Tribunal to take appropriate call on this issue
in accordance with law. In rejoinder Ld. AR submitted that they
indeed regret non compliance on part of the assessee but
asserted that in Audit Report donation amount could be seen as
having been received through normal banking channels. The
assessee has now compiled the details and that they are ready to
submit the same.
Observations,findings & conclusions.
4.1 We now have to decide the legality, validity and proprietary
of the “Impugned Order” basis records of the case and
contentions canvassed before us.
4.2 We have minutely perused records of the case and have
heard the rival submissions.
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Shri Sthankvasi Jain Sangh ITA No. 431/Ind/2024 AY 2022-23 4.3 We are of the considered opinion that since Ld. AR has
under taken before us that the assessee would file all requisite
details of donations as requisitioned by CIT (E) it would be just
fair and convenient and in the interest of ends of justice that
impugned order be set aside and matter be remanded back to file
of CIT(E) to pass a fresh order on denovo basis after assessee has
submitted all details as sought. Hence we set aside the
“impugned order” as and by way of Remand on denova basis.
Order
5.1 In the premises “impugned order” is set aside as and by
way of remand on denova basis.
5.2 Appeal is allowed for statistical purpose.
Order pronounced in open court on 26.03.2025.
Sd/- Sd/-
(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक /Dated : 26/03/2025 Dev/Sr. PS
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Shri Sthankvasi Jain Sangh ITA No. 431/Ind/2024 AY 2022-23 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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