MAHAVIR YUVA SARVA SHIKSHA SAMAJIK SAMITI,UJJAIN vs. CIT EXEMPTION BHOPAL, BHOPAL

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 convenience, ease and brevity) before this Tribunal. The

assessee is aggrieved by the order bearing Number

ITBA/EXM/F/EXM45/2024-25/1066659678(1)dated 12.07.2024

of the Ld. CIT(Exemption), Bhopal, M.P. which is hereinafter

referred to as the “impugned order”. Page 1 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 2. FACTUAL MATRIX

2.1 That the assessee is a society registered under the Societies

Act, 1860.

2.2 That the assessee society was granted the provisional

registration under the Act by CPC vide URN No.

AADTM2702NE20213.

2.3 That the assessee society filed Form 10AB for registration

u/s 12AB of the Act.

2.4 That by an order dated 24.09.2021 the assessee society was

granted provisional registration bearing No. AADTM2702NE

20213 dated 24.09.2021 for Assessment Year 2022-23 to

Assessment Year 2024-25. The said order is at page 36 to 38 of

the paper book which is placed on record of this Tribunal. The

said order for provisional registration was subject to certain

terms and conditions which are specified in order granting

provisional registration dated 24.09.2021.

Page 2 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 2.5 When the assessee society applied for the permanent

registration u/s 12AB under the Act by filing Form 10AB certain

requisitions were made by Ld. CIT (E).

2.6 That assessee society had submitted all the documents

which they thought prudent before Ld. CIT (E) for permanent

registration.

2.7 That the assessee society is engaged in the charitable

activities i.e.

2.8 That Ld. CIT(E) by way of a notice bearing Number

ITBA/EXM/F/EXM43/2024-25/1064925819(1)dated 16.05.2024

while proceeding u/s 12A(1)(ac)(iii) with reference to their

application in form 10AB requisitioned certain documents the

Page 3 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 details of which are provided in the said notice. The copy of the

said notice is at page 5 & 6 of the PB placed on record of this

Tribunal. In particular at Sl.No.7 Ld. CIT(E) sought from the

assessee society “details of donation/grants received during last

three years with following details:- Name of Donor, address, PAN,

Mobile Number, date of donation, whether CSR donation,

corpus/Non corpus, whether Form 10BE issued”.

2.9 That the assessee society in response to the aforesaid notice

filed a reply page 7 to 8 of PB wherein all the requisition made by

Ld. CIT(E) were complied with as far as possible.

2.10 The Ld. CIT(E) however by the “impugned order” on the

grounds specified in the “impugned order” however has rejected

the application of the assessee filed in Form 10AB for grant of

registration u/s 12AB of the Act. The provisional registration u/s

12AB in Form 10AC vide URN No. AADTM2702NE20213 dated

24.09.2021 earlier granted by CPC was also cancelled.

2.11 That the assessee being aggrieved by the “impugned order”

has filed the present appeal before this Tribunal and interalia has

Page 4 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 raised following grounds of appeal in Form No.36 against the

impugned order which are as follows:-

“1. The application for permanent registration u/s 12AB in Form 10AB which is denied by Hon’ble CIT(E) and order for rejection of order u/s 12AB has been issued which is not justified.”

3.1 The hearing in the matter took place before this Tribunal on

17.03.2025, when the Ld. AR for and on the behalf of the

assessee appeared and interalia contended that “Impugned

Order” of Ld. CIT(E) is illegal, bad in law and not proper and that

the same should be set aside by this tribunal in exercise of its

appellate jurisdiction conferred upon them under the Act. The Ld.

CIT(E) in the “impugned order” has recorded that a requisition

was made to the assessee society to provide details of donation

received and paid during the last 3 financial years with complete

details, however the assessee in reply while enclosing the list of

donors have not furnished donor’s PAN details and so also their

address. Under these circumstances the Ld. CIT(E) has held that

genuineness of donations could not be verified and on this

ground alone their application for registration u/s 12AB was

rejected and so also provisional registration earlier granted in

Page 5 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 Form 10AC. The Ld. AR during the course of the argument

invited our attention to page 25 to 30 which is donation list

200-21 of the assessee society containing names of 253 persons

who had donated various amount to the assessee society. It was

brought to our notice that small amounts came to be donated by

these persons Rs. 1100/- to Rs.2000/- and aggregate amount

comes to Rs.3,85,000/- from total 253 persons. It was

contended that these amounts from 253 persons are meager

amount and to insist for PAN number of these persons and

address would indeed cause grave hardship to them, due to very

nature of meager amounts involved in donation. Correspondingly

the Ld. AR invited our attention to Auditor Report as on

31.03.2021 page 39 to 42 of PB and demonstrated that aggregate

amount of Rs.3,85,000/- is clearly stated under income column

as having been received as and by way of donation. Similar

exercise was done by Ld. AR for donation list for the year 2021-

22 wherein the amount of Rs.1,49,221/- was received from total

96 persons (page 31 to 33 of PB) with Auditor Report at page 43

to 49 for the year ended 31.03.2022 wherein too the amount of

Rs.1,49,221/- is reflected as and by way of donation under

Page 6 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 income column. Correspondingly in Audit Report for the year

ended 31.03.2022 the amount of Rs.1,49,221/- is reflected (page

43 to 45 of PB). The Ld. AR for the financial year 2022-23 invited

our attention to the donation list (page 34 to 35 of PB) wherein

there are total 58 person who in aggregate have paid Rs.87,571/-

and that the same are reflected in audit report for the year ended

on 31.03.2023 (page 46 to 48 of PB). The sheet anchor of Ld. AR

argument was that small amounts are received by assessee

society ranging from Rs.1100/- to Rs,2000/- and non furnishing

of PAN details and address of such donor’s should not lead to

non registration U/s 12AB as amount donated by person is too

meager. The Ld. AR then contended that object and genuineness

of the trust/society is required to be seen in law and perse Ld.

CIT(E) has not recorded anything adverse against the

assessee/society in the impugned order. In fact object

genuineness is not questioned at all in the proceedings. Per

contra Ld. DR interalia has contended that in so far as object and

genuineness of assessee society is concerned while it is true that

there are no findings in the “impugned order” however this

aspect can be seen afresh by Ld. CIT(E) in event this Tribunal set

Page 7 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 aside the impugned order and on remand of proceeding Ld. CIT

(E) can examine said issue. In the rejoinder argument Ld. AR

stated that assessee society has all “Receipts” of donation and

that same can be shown to Ld. CIT (E). The Ld. CIT(E) however

should not insist for PAN details and address of donor’s as

amount paid by each of the donor is very small but for a good

cause.

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 carefully perused records of the case. We are of the

considered view after examining the rival contentions that it

would be just, fair and convenient and so also in the interest of

ends of justice that the impugned order be set aside and matter

be remanded back to the file of CIT(E) to examine the whole issue

afresh and then to pass a fresh order by taking overall facts and

circumstances of the case together including the issue of object

and genuineness of the activities of the assessee society.

Page 8 of 9

Mahavir Yuva Sarva Shiksha Samajik Samiti ITA No. 561/Ind/2024 – AY 2024-25 4.3 In the premises drawn up by us, we set aside the impugned

order and remand the case back to CIT(E) on denovo basis who

shall take into consideration overall gamut of the case into

consideration and then shall pass a reasoned order.

5.1 In result appeal of Assessee is allowed as and by way of

remand on denovo basis.

5.2 Appeal is allowed for statistical purpose.

Order pronounced in open court on 20.03.2025.

Sd/- Sd/-

(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक /Dated : 20/03/2025 Dev/Sr. PS 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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