PARAMARTH PRABODHAN SANSKRUTIK SEVA MANDAL,OMERGA vs. CIT EXEMPTION, PUNE

1.1 This is an appeal e-filed by assessee against the order of ld.Commissioner of Income Tax(Exemptions), Pune under section 12A of the Income Tax Act, 1961 rejecting assessee’s application Paramarth Prabodhan Sanskrutik Seva Mandal [A] filed in Form No.10AB for registration under section 12AA of the Act.

On perusal of the order of the ld.CIT(E) dated 21.10.2022, it is observed that the ld.CIT(E) has rejected the application of the assessee only on one ground that assessee failed to file details called-for vide notice dated 07.10.2022 and 25.08.2022. 2.1 The ld.Authorised Representative(ld.AR) of the assessee submitted that along with the Form No.10AB, the assessee had submitted copy of Trust Deed, copy of Audited Financials for the last three years along with Audit Report, copy of Registration under Society Registration Act. Ld.AR also submitted that the notices issued by ld.CIT(E) were not received by assessee as those notices were send on some wrong email id.

The ld.Departmental Representative(ld.DR) for the Revenue supported the order of the ld.CIT(E).

In this case, ld.DR has not denied that assessee had submitted copy of Trust Deed, Three Years Financial Audit Reports. The ld.CIT(E) has not made any remarks about the Trust Deed, Three Years Financials. At the time of granting registration, the 2 Paramarth Prabodhan Sanskrutik Seva Mandal [A] ld.CIT(E) has to look at the charitable nature of the objects and charitable nature of the activities. The ld.Commissioner of Income Tax(Exemption) has failed to verify these aspects, though the trust deed was on record and financials were on record. Be it as it may be, in the interest of justice, we set-aside the order of ld.CIT(E) for denovo adjudication to ld.CIT(E). The ld.CIT(E) shall provide opportunity to the assessee. Accordingly, appeal of the assessee is allowed for statistical purpose.