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Income Tax Appellate Tribunal, PUNE ‘B’ BENCH, PUNE
Before: HON’BLE SHRI S. S. GODARA & SHRI G. D. PADMAHSHALI
IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE ‘B’ BENCH, PUNE BEFORE HON’BLE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER
Sr Appeal No Appellant PAN Respondent
Shree Salasar Hanuman Trust 1 ITA No 425/PUN/2024 157, Budhwar Peth, Madhav Nagar, AAHTS5443C Sangli. Sadquah Medical And Charitable The Commissioner of Jamatul Muslimeen Society 2 ITA No 464/PUN/2024 AAZTS1209C Income Tax-Exemption, 408, Maker Bhavan, New Marine Pune [ in short 'CIT(E)'] Lines, Mumbai. The Roha Educational of the Welfare Association 3 ITA No 466/PUN/2024 AACTT6244K 408, Maker Bhavan, New Marine Lines, Mumbai. द्वारा / Appearances Assessee by : Mr Tanzil Padvekar [‘Ld. AR’] Revenue by : Mr Ajaykumar Kesari [‘Ld. DR’] सुनवाई की तारीख / Date of conclusive Hearing : 21/05/2024 घोषणा की तारीख / Date of Pronouncement : 22/05/2024 आदेश / ORDER PER G. D. PADMAHSHALI, AM; This bunch of three appeals of abovenamed different assessee’s instituted u/s 253(1)(c) of the Income-tax Act, 1961 [‘the Act’] are assailed against the respective order of denial to grant registration passed by the Commissioner of Income Tax (Exemption), Pune [‘CIT(E)’] u/s 12AB of the Act.
Since the facts and solitary issue involved in this bunch of appeals are identical, on the request of rival parties, for the sake of brevity these are heard together for a common and consolidated order.
ITAT-Pune Page 1 of 4
ITA No.425, 464 & 466/PUN/2024
We have heard rival common contention & arguments and subject rule 18 of ITAT-Rules, 1963 perused the material placed on records.
It is the common grievance that, the appellant vide Form No.10AB made an application to the respondent Revenue u/c (iii) of section 12A(1)(ac) of the Act thereby sought regular/final registration u/s 12AB of the Act. The aforestated application by the respective impugned order was rejected and in consequence thereof provisional registration granted in each of these cases were cancelled the by the Ld. CIT(E) for his failure to arrive at positive satisfaction about genuineness of activities of the appellant owning to cogent evidences in general and non-compliance of discrepancies notified in particular.
ITA No. 425/PUN/2024 5. The record prima-facie reveals that, upon appellants failure to annexe required documents as contemplated u/r 17A(2)(k) of IT-Rules, 1962 the Ld. CIT(E) vide notice dt. 11/07/2023 & 28/07/2023 accorded two opportunities to make good the deficiency in the application, which the appellant attended. After considering the submission of the appellant, certain discrepancies were noticed and for the reason by a notice dt. 18/08/2023 the appellant was again called upon to cure the defects and clarify the discrepancies which appellant claims to have complied well in time. Per contra the Ld. CIT(E) formed the very basis of non-compliance thereto in rejecting the aforestated application and in result the provisional registration granted to it on 23/09/2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act is cancelled by the impugned order.
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ITA No.425, 464 & 466/PUN/2024
ITA No. 464 & 466/PUN/2024 6. In these cases, the appellant assessee inspite 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 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
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ITA No.425, 464 & 466/PUN/2024
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-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, these three appeals are ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, orders pronounced in open court on this Wednesday 22nd day of May, 2024.
-S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; ददनाांक / Dated : 22nd day of May, 2024. आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr.CIT(Exemption),Pune 4. The CIT-Concerned (MH-India) 5. DR, ITAT, Pune Bench ‘B’, Pune 6.गार्डफ़ाइल / Guard File. Ashwini आदेशानुसार / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्यायादधकरण, पुणे / ITAT, Pune.
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