ANAND DHAM FOUNDATION,AHMEDNAGAR vs. COMMISSIONER OF INCOME TAX, EXEMPTION, PUNE, PUNE

Both the appeals are filed with a delay of 512 and 480 days. The assessee has filed an application along with a sworn affidavit of the President of the assessee trust seeking condonation of delay in filing of the appeal(s) stating therein the reasons for delay as under : “3. On receipt of order, we have approached our consultant and requested to do the needful. He assured to file the appeal against the said order before the Hon'ble Bench by the due date. After few days, we enquired about the status of the appeal, then he said that the appeal shall be filed soon as during the month of November, 2022 his himself was suffering with a medical decease. The copy of medical report is attached herewith as per Annexure -

After hearing both the sides, we are of the view that the delay is not intentional or deliberate but attributable to the sufficient cause. We, therefore, condone the delay in filing of both the appeals and proceed to decide the appeals.

The assessee has raised the following grounds of appeal :- “1. On the facts and in the prevailing circumstances of the case, the (Exemption) learned CIT Pune erred in rejecting the application of the assessee for seeking approval under section 12AB without appreciating the submission made by the assessee Trust. Hence, said order may please be set aside and the approval under section 12AB may please be granted.

Briefly stated, the facts of the case are that on receipt of the assessee’s application filed in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act along with annexures thereto, with a view to verify the genuineness of the activities of the assessee etc., the Ld. CIT(E) issued notice on 06.10.2022 through ITBA portal requiring the assessee to upload certain years/inception etc. under the provisions of section 12AB of the Act. The compliance was sought by 13.10.2022. The assessee was specifically informed that in the event of failure to comply by due date, the matter will be decided based on material available on record. The notice(s) were duly served on the assessee through e-portal/e-mail. The Ld. CIT(E) observed that the evidences furnished in support of the activities undertaken are very sketchy ones. The said activities and the evidence in the form of some random snaps do not establish that the entity is engaged into any charitable activity. The Ld. CIT(E), hence proceeded to pass the impugned order rejecting the application of the assessee.

Dissatisfied, the assessee is in appeal before the Tribunal.

The Ld. AR submitted that there was no intentional non-appearance before the Ld. CIT(E). As can be seen from the order of the Ld. CIT(E) only one opportunity of hearing was granted to the assessee vide notice dated 06.10.2022 to which the compliance was sought by 13.10.2022. Before the assessee could file its reply in response to the said notice, the Ld. CIT(E) proceeded to pass the impugned order rejecting the application of the assessee on 26.10.2022. He submitted that given an opportunity the assessee is in a position to submit all the requisite details/ documentary evidence before the Ld. CIT(E) in support of its application. He, therefore, prayed that the matter may be set aside to the file of the Ld. CIT(E) to adjudicate the same on merits afresh after affording one more opportunity of being heard to the assessee.

The Ld. DR conceded to the above proposition of the Ld. AR.

We have considered the rival submissions and perused the records. On the facts and in the circumstances of the assessee’s case, we are of the view that it would be judicially expedient and in the interest of justice and fair play if the matter is restored back to the file of Ld. CIT(E) to consider afresh the assessee’s application for registration u/s 12A(1)(ac)(iii) of the Act and decide the matter on merits, in accordance with facts and law after its case. The assessee shall provide the requisite support in terms of submitting the relevant details/documentary evidence as may be required/ called upon on the appointed date, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We order accordingly.

In the result, the appeal of assessee is treated as allowed for statistical purposes.

The brief facts in this appeal are that the assessee trust applied for final registration u/s 80G(5)(iii) of the Act on 03.05.2022. On receipt of the assessee’s application filed in Form No. 10AB under clause (iii) of first proviso to section 80G(5) of the Act along with annexures thereto, with a view to verify the genuineness of the activities of the assessee etc., the Ld. CIT(E) issued notice on 12.09.2022 through ITBA portal requiring the assessee to upload certain information/clarification such as date of commencement of activity, date of expiry of provisional registration, details of any other law applicable for achievement of objectives and the proof of compliance of said law, proof of identity of main trustees / directors / trustees, year-wise list of donations received, note on activities carried out along with supporting credible evidence etc. The compliance was sought by 27.09.2022. The assessee was specifically informed that in the event of failure to comply by due date, the matter will be decided based on material available on record. The notice(s) were duly served on the assessee through e-portal/e-mail. After considering the assessee’s application along with annexure thereto the Ld. CIT(E) proceeded to pass the impugned order observing that since the assessee has failed to furnish the details called for it is not possible to verify the genuineness of the activities of the trust as also fulfillment of conditions laid down in clauses (ii) to (v) of section 80G(5) of the Act. Despite, giving sufficient opportunity to comply the assessee failed to respond, it therefore seems that the assessee has no supporting documents/ evidences to submit. The Ld. CIT(E) further observed that the assessee is neither registered u/s 12AB read with section 12A(1)(ac)(i)/12A(1)(ac)(iii) nor approved u/s 10(23C) read with clause (i)/(iii) of first proviso to the said section and the case is not covered under the exclusions provided vide proviso to clause (i) of section 80G(5) of the Act. The assessee is also not a Regimental Fund or Non-Public Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants. In fact, the application of the assessee in form No. 10AB for registration u/s 12AB filed under the provisions of section 12A(1)(ac)(iii) of the Act has been rejected vide order dated 26.10.2022. Therefore, the condition (i) of section 80G(5) of the Act is not fulfilled in this case. The Ld. CIT(E) hence passed the impugned order rejecting the assessee’s application u/s 80G(5)(iii) of the Act.

Aggrieved, the assessee is in appeal before the Tribunal by raising the following grounds of appeal : “1. On the facts and in the prevailing circumstances of the case, the (Exemption) learned CIT Pune erred in rejecting the application of the assessee for seeking approval under section 12AB without appreciating the submission made by the assessee Trust. Hence, said order may please be set aside and the approval under section 80G may please be granted.

We find that the facts as narrated above in are identical to ITA No. 1128/PUN/2024 except the assessee seeking registration u/s. 80G of the Act. Since, the facts in ITA No. 1129/PUN/2024 are similar to ITA No. 1128/PUN/2024, the findings given by us while deciding the appeal of assessee in ITA No. 1128/PUN/2024 would mutatis mutandis apply to ITA No. 1129/PUN/2024, as well. Accordingly, the appeal of assessee is allowed for statistical purposes.

To sum up, both the appeals of the assessee in & 1129/PUN/2024 are allowed for statistical purposes.