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Facts
The assessee, Utkarsha Sanstha, is a charitable trust that applied for registration under sections 12AB and 80G of the Income Tax Act, 1961. The CIT(E) rejected the applications, citing a lack of details regarding the trust's activities and other discrepancies. The assessee appealed these orders.
Held
The Tribunal found that the CIT(E) had passed ex-parte orders without granting adequate opportunity to the assessee. Given that the assessee already had provisional registration under section 12AB and had undertaken to furnish complete details of activities, the matter was restored to the CIT(E) for fresh consideration.
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration under sections 12AB and 80G without providing sufficient opportunity for the assessee to be heard and to submit required details.
Sections Cited
12AB, 80G, 12A(1)(ac)(iii), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, PUNE AT NAGPUR
Before: SHRI PAWAN SINGH, JM & SHRI KHETTRA MOHAN ROY, AM
2. The order passed by CIT (Exemption) non–granting registration u/s 12AB is unjustified, unwarranted and bad in law.
3. The learned CIT (Exemption) ought to have granted registration u/s 12AB of I.T. Act 1961 considering the facts and evidence on record.
4. The learned CIT (Exemption) erred in cancelling the provisional registration without specifying any specified violation in the case of assessee.
5. The learned CIT (Exemption) erred in not Granting registration by observing discrepancies at para 2.2 as to details of activities not provided. ”
grounds of appeal:
“1. The learned CIT (Exemption), Pune erred in not granting registration under section 80G as applied with reference to application dated 29/06/2024 even though it was holding provisional registration under clause iv of first provision to sub section (5) of section 80G of the Income Tax Act, 1961.
The order passed by CIT (Exemption) non–granting registration u/s 80G is unjustified, unwarranted and bad in law.
3. The learned CIT (Exemption) ought to have granted registration u/s 80G of I.T. Act 1961 considering the facts and evidence on record.
4. The learned CIT (Exemption) erred in cancelling the provisional registration without specifying any specified violation in the case of assessee.
5. The learned CIT (Exemption) erred in not Granting registration by observing discrepancies regarding genuineness of charitable activities, details of donation where assessee specifically requested for grant of time for providing adequate required information, year wise details of activities and donation and vouchers etc and as to.
The assessee has submitted a brief synopsis of the case which is reproduced as under:
Regarding condonation of delay
The CIT(E) has passed ex-parte order for registration or approval or rejection or cancellation in Form No. 10AD on 02/03/2024. The said order was received in the office of counsel Adv. Smt. Shruti Joshi, in the last week of April 2024.
Mother in law of the counsel Adv. Smt. Shruti Joshi aged about 88 years was not keeping well and expired on 25/04/2024, therefore counsel has not attend office for near about one and half month and she was also busy in rituals to be conducted.
The counsel for the assessee trust Adv. Smt. Shruti Joshi keeping in view circular issued by CBDT on 25/04/2024 (F. No. 173/25/2024-ITA- I) regarding extension of due date for filling of Form No. 10A/10AB under the Income Tax Act, 1961 again filed application in form 10AB on 29/06/2024. Proceedings in response to an application filed form 10AB are going on.
Therefore there is delay in filing of appeal around 215 days on account of genuine and bonafide reasons and is not intentional.
“Ground No. 1 to 5:
The assessee is Charitable Trust and registered under the Bombay Public Trust Act, 1950 and Societies Registration Act, 1860. Registration Certificate PB Page-66 & 67.
Main aims and objects of Trust is new education syllabus, Computer Knowledge, Group activity safe and unsafe touch, Vocational Training and other social activities as per Memorandum of Society, which is on Page-52 To 65 of Paper Book.
The assessee trust maintained regular books of account and books of accounts were audited. Copies of Audit Reports for F.Y. 2018- 2019, 2019-2020, 2020-2021 alongwith audited Income & Expenditure, Balance Sheet on Page-93 To 107 of Paper Book.
The assessee trust has regularly filed return of income. Copy of acknowledgment of return and computation of income for A.Y. 2022-23 on Page-1 & 2 of Paper Book.
The assessee trust various social activities and arrange camp for need peoples. Copy of annual report on Page-8 To 36 of Paper Book.
The Commissioner of Income Tax (Exemption) was granted provisional registration on 28/03/2022 under section 12AB r.w.s. 12A(1)(ac) (vi) of the Income Tax Act, 1961. Copy of provision registration on Page-3 To 7 of the Paper Book.
The assessee has submitted application for permanent registration in Form 10AB on 30/09/2023.
The CIT(E) has issued notice U/s. 12A(1)(ac)(iii) dated 24/11/2023. Copy of notice on Page-79 & 81 of Paper Book.
The assessee has submitted the detailed reply alongwith supporting documents. Copy of reply (PB/Page-82 To 86) and copy acknowledgment of e-proceedings response (PB/Page 87 To 90) showing the details submitted by the assessee trust.
The CIT(E) has issued notice U/s. 12A(1)(ac)(iii) dated 14/02/2024. Copy of notice on Page-91 & 82 of Paper Book.
In response to notice the assessee trust has not submitted the reply due to non receipts of notice. The CIT(E) not granting proper opportunity to being heard to assessee and passed ex-parte order for registration or approval or rejection or cancellation in Form No. 10AD 02/03/2024.”
Brief facts of the case are that the assessee is Charitable Trust and registered under the Bombay Public Trust Act, 1950 and Societies Registration Act, 1860. The assessee–trust is engaged in providing new education syllabus, Computer Knowledge, Group activity safe and unsafe touch, Vocational Training and other social activities as per Memorandum of Society and maintained regular books of account and books of accounts were audited.
The ld. AR of assessee has contended that the ld. CIT(E) has passed ex–parte order for registration or approval or rejection or cancellation in Form 10AD on 02/03/2024.
The ld. AR also submitted that the contention of assessee is that the Trust has not submitted the reply due to non–receipt of notice.
The ld. CIT(E) has not granting proper opportunity of being heard to the assessee and passed ex–parte order for registration or approval or rejection or cancellation in Form no. 10AD on 02.03.2024.
Considering the facts of the case and looking to the facts and circumstances of the case, the delay of 215 days in filing of appeal may be condoned.
8. We find that application of assessee for approval of fund was rejected for the want of details of activities. Now, before us, the ld. AR of the assessee has undertaken to furnish complete details of the activities carried out by assessee. Thus, considering the fact that assessee is having valid registration under section 12AB, which is the primary condition for approval of trust under section 80G(5). Thus, accepting the prayer of ld. AR of the assessee, the matter is restored back to the file of ld. CIT(E) to reconsider the matter afresh. Needless to direct that before passing the order of ld. CIT(E) shall allow reasonable opportunity to the assessee. The assessee is directed to be more vigilant in future in making timely compliance. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose.
As considered above, similar direction is extended in this case also.
In the result, both the appeals of assessee are allowed for statistical purposes.
Order pronounced in the open Court on 26/02/2026