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Income Tax Appellate Tribunal, PUNE ‘A’ BENCH, PUNE
Before: HON’BLE SHRI S. S. GODARA & SHRI G. D. PADMAHSHALI
बनाम / V/s. The Commissioner of Income Tax Exemption, Pune . . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee by : None for the Assessee Revenue by : Mr Keyur Patel [‘Ld. DR’] सुनवाई की तारीख / Date of conclusive Hearing : 29/05/2024 घोषणा की तारीख / Date of Pronouncement : 29/05/2024 आदेश / ORDER PER G. D. PADMAHSHALI, AM; The present appeal of the assessee challenges DIN & order No. ITBA/EXM/F/EXM45/2023-24/1059845082(1) dt. 18/01/2024 of Commissioner of Income Tax-Exemption, Pune [for short ‘CIT(E)’] passed u/s 12A(1)(iv) of the Income-tax Act, 1961 [for short ‘the Act’]
The case was called twice, none appeared on bequest of the appellant assessee nor there any application for adjournment filed. In view thereof we deem it appropriate to proceed and adjudicate the matter on merits ex-parte u/s 24 of ITAT-Rules, 1963.
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Matoshri Jijau Gram Vikas Mandal
Heard the Ld. DR Mr Patel and subject to the provisions of rule 18(7) of ITAT-Rules, 1963, perused material placed on record.
We observed that, the appellant assessee had applied for registration under clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act on 28/9/2023. Upon perusal of Form 10AB and accompanying documents, the Ld. CIT(E) by issue of notice dt. 21/11/2023 called upon the appellant to substantiate its existence and genuineness of activities carried out and to furnish certain information / clarification with their respect etc., In the event of effective failure, the assessee vide notices dt. 19/12/2023 was again granted opportunities to make good the shortcoming, however these notices also went futile. In absence of requisite material to enable to arrive at positive satisfaction, the Ld. CIT(E) concluded activities of the appellant as lacked from genuinity, thus rejected to grant u/s 12AB registration.
We further note that, the appellant assessee in-spite of two clear opportunities did fail to comply with other filing requirements of rule 17A(2)(k) of the Income Tax Rules, 1962, consequent to which genuineness of activities remained to be proved which resulted into rejection and cancellation of provisional registration.
The statue empowers the registering authority to call any such documents or information so as to satisfy himself with twin prescriptions of section 12AB(1)(b)(i) of the Act viz; (A) genuineness of activities (B) Compliance with all applicable laws etc., and in order to draw conclusion over satisfaction the registering authority is duty bond to carry out wholesome & autonomous exercise ITAT-Pune Page 2 of 4
Matoshri Jijau Gram Vikas Mandal ITA No.0311/PUN/2024 according to nature/character of charitable purpose vis-a-vis the applicant engaged into. In arriving to conclusion over satisfaction about the genuineness of activities and compliance of applicable law, the registration proceedings is expected to vouch predominantly; (i) whether applicant is a public charitable trust established in accordance with applicable law & in operation as such [Constitution/Establishment] (iii) whether all the entries of object clause are in consonance with the ‘charitable purpose’ as defined by section 2(15) of the Act [Objects] (iv) whether there exist any implied or express provision in the constitutional & other administrative documents/policies etc., entitling any right or power to the trust/trustee carry to engage (by itself or through agent/appointees) into any activities outside the ambit of registered objects [Rights/Power] (vi) whether all the activities and operation are strictly carried out in line with the registered objects of ‘charitable in nature’ [Activity] and finally (vii) whether it is compliant of all the applicable law in all respect and around the clock[Compliance]. Any proceedings culminated without vouching these former key factual (Corac) would prima-facie be deficient as it may lead to absurd conclusion.
We find that, owning to absence of evidential documents and failure on the part of appellant to cure notified deficiencies constrained the Ld. CIT(E) to culminate the impugned registration proceedings without former wholesome & autonomous exercise. However, the reasons behind non-compliance as explained in each of these cases in our considered view are sufficient for setting aside the rejection and remitting these matters back to the file of registering authority for de- ITAT-Pune Page 3 of 4
Matoshri Jijau Gram Vikas Mandal ITA No.0311/PUN/2024 nova consideration which the Ld. DR could hardly object. In view hereof, without commenting on merits we set-aside the rejections and cancellation of provisional registrations, consequently remit these matters back to the file of Ld. CIT(E) for de-nova consideration in accordance with law after giving three effective opportunities to the appellant assessee.
In result, the appeal of the assessee is allowed for statistical purposes. U/r 34 of ITAT Rules, order pronounced in open court on this Wednesday 29th day of May, 2024.
-S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; ददनाांक / Dated : 29th day of May, 2024. आदेश की प्रतितलतप अग्रेतिि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT, Pune (MH-India) 4. The CIT(E),Pune (MH-India) 5. DR, ITAT, Pune Bench ‘A’, Pune 6. गार्डफ़ाइल / Guard File. आदेशानुसार / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्यायादधकरण, पुणे / ITAT, Pune.
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