AVILEEN EDUCATION FOUNDATION,PUNE vs. COMMISSIONER OF INCOME TAX, EXEMPTION PUNE, PUNE

3. Facts of the case, in brief, are that the assessee is a company registered under the provisions of the Companies Act, 2013 with an object to working towards education and betterment of the kids. The foundation runs educational cafes at multiple locations wherein kids can walk in the cafes and study using the resources and using the free app access for standards 6th to 10th. It is stated that the core objective of the foundation is to make entire India 10th pass. With a view to verify the genuineness of activities of the assessee and compliance to requirement of any other law for the time being in force by the institution as are material for the purpose & 1073/PUN/2024 of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 05.12.2023 requesting the assessee to upload certain information/clarification as mentioned in the notice.

The assessee in response to above notice furnished desired details. After verifying these details, Ld. CIT, Exemption, Pune found certain discrepancies and asked for their clarification by notice dated 20.02.2024. The assessee did not furnish any written submission except re-submission of three documents already furnished by him. The assessee was again requested to furnish a detailed note with branch wise details of participating children along with other related details. Since the assessee has not complied to this notice, Ld. CIT, Exemption, Pune was not satisfied about the charitable nature and genuineness of the activities of the assessee and compliance to requirement of any other law for the time being in force by the institution as are material for the purpose of achieving its objects and therefore rejected the application filed by the assessee and also cancelled the provisional registration granted on 31.05.2021 u/s 12AB r.w.s.

Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is not justified. It was submitted by Ld. counsel of the assessee that detailed submission along with evidence was furnished before Ld. CIT, Exemption, Pune but the same was not considered by him and accordingly it was submitted before the Bench that if Ld. CIT, Exemption, Pune was not satisfied with the submissions he could have provided one more opportunity to make the compliance but no such opportunity was provided by him. Accordingly, it was requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity of hearing to the assessee to submit the desired information before Ld. CIT, Exemption, Pune.

Ld. DR appearing from the side of the Revenue relied on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same.

We have heard Ld. Counsels from both the sides and perused the material available on record. We find that consistently the & 1073/PUN/2024 Co-ordinate Benches of the Tribunal in various cases including the recent decision of this Tribunal in the case of Sovo Foundation vs. CIT (Exemption), Pune vide & 2134/PUN/2024 order dated 09.12.2024 has remanded the matter involving the issue of 12AB registration back to the file of Ld. CIT, Exemption to decide the issue afresh since the application was decided ex-parte i.e. for want of prosecution. Accordingly, in the instant case also we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the issue afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and produce specific documents/evidences desired by Ld. CIT, Exemption, Pune in support of application for registration without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee in this appeal are partly allowed.