UDAY MAHILA SEVA SANSTHA,UMRED vs. CIT EXEMPTION , PUNE

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ITA 638/NAG/2024Status: DisposedITAT Nagpur19 June 2025Bench: SHRI NARENDER KUMAR CHOUDHRY (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the appeal was filed online and there was no delay. The Tribunal found that the rejection was based on a specific provision of the Maharashtra Public Trust Act and that the assessee had not obtained the required sanction. The Tribunal decided to remand the matter back to the CIT(E) for fresh consideration.

What were the facts?

The assessee's application for registration under section 12A of the Income Tax Act, 1961, was rejected by the CIT(E) for not obtaining prior sanction from the Charity Commissioner for borrowing money on behalf of the trust. The assessee had filed an ex-post facto application for sanction, which was pending.

What were the issues?

Whether the CIT(E) was justified in rejecting the application for registration under Section 12A due to the lack of prior sanction from the Charity Commissioner for borrowing, and whether the appeal should be remanded for fresh consideration.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI K.M. ROY, ACCOUNTANT, MEMBER

For Appellant: Shri Sanjay Thakar
For Respondent: Shri Pankaj Kumar

Date of Hearing – 19/06/2025 Date of Order – 19/06/2025

O R D E R PER N.K. CHOUDHRY, J.M.

The present appeal has been filed by the assessee challenging the impugned order dated 26/09/2023, passed in Form no.10AD, rejecting the application dated 31/03/2023, filed by the assessee in Form no.10AB, under clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961 (for short "the Act") by the learned Commissioner of Income Tax (Exemption), Pune, [for short, “learned CIT(E)”].

2.

At the outset, we observe that there is a delay of 394 days in filing the present appeal. However, the ld. Counsel for assessee has 2 Uday Mahila Seva Sanstha ITA no.638/Nag./2024 demonstrated the peculiar fact that the appeal was already filed via on–line on 04/11/2023, therefore, there is no delay. We are in concurrence with such claim of the assessee and hold that no delay is there in filing of this appeal.

3.

Coming to the merits of the case, we observe that in this case, the assessee’s application for registration under section 12A of the Income Tax Act, 1961 (for short "the Act") was rejected by the learned CIT(E) on various reasons specifically and mainly to the effect that provisions of section 36A(3) of the Maharashtra Public Trust Act, , categorically provides that no trustee shall borrow moneys (whether by way of mortgage or otherwise) for the purpose of or on behalf of the trust of which he is a trustee, except with the prior sanction of the Charity Commissioner and subject to such conditions and limitation, as may be imposed by him taking in the interest or protection of the trust. Admittedly, the assessee has not obtained any such sanction from the Charity Commissioner and, therefore, the learned CIT(E) rejected the application filed by the assessee and ultimately making an observation that ex–post facto application is still pending for adjudication. Thus, for substantial justice and proper and just decision of case, we are inclined to remand the matter back to the file of the learned CIT(E) for decision afresh by taking into consideration the relevant reply and documents with regard to the objections / reasons

3 Uday Mahila Seva Sanstha ITA no.638/Nag./2024 stated by the learned CIT(E) in rejecting the application filed by the assessee under section 12A of the Act. We also direct the assessee to speed–up the process of application filed before the Charity Commissioner by sending reminders to the Charity Commissioner quoting this particular order, so that he can speed up the process of adjudication of application filed by the assessee. Thus, in the aforesaid terms, the case is remanded back to the file of the learned CIT(E) for decision afresh accordingly.

4.

In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 19/06/2025

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