AASHRAY CHARITABLE TRUST,PUNE vs. CIT EXEMPTION, PUNE, PUNE

PER BENCH:

These two appeals filed by the assessee are directed against

the orders of ld. Commissioner of Income Tax, Exemption, Pune

[the CIT, Exemption] both dated 21.10.2023 denying registration

u/s. 12AB(1)(ac)(vi) and approval u/s.80G(5)(iv) of the Income Tax

Act, 1961 (‘the Act’).

engaged in the business of running educational institutions. The

2 ITA Nos.1218 & 1219/PUN/2023

appellant made an application on 18.05.2023 in Form No.10AB for

grant of registration u/s 12AB of the Act. In the extant appeal under

consideration in ITA No.1219/PUN/2013, the ld. CIT, Exemption

issued a notice dt. 18.10.2023 through ITBA portal calling upon the

appellant to file certain information/clarification. On receipt of this

notice, the appellant society has moved an application on

17.10.2023 seeking further time to comply with the said notice,

placed at page No.119 of the appeal memo. The ld. CIT, Exemption

without disposing of the adjournment petition sought by the

appellant had proceeded with the disposing of the application by

denying the grant of registration u/s.12AB of the Act and

accordingly cancelled the provisional registration granted on

21.10.2023. The assessee is in appeal before us assailing the

impugned orders passed rejecting the application u/s.12AB as well

as approval u/s.80G(5)(iv) of the Act.

record. On perusal of the impugned order, it is clear that the

appellant was asked to furnish certain information vide notice dated

13.10.2023 requesting the appellant society to file the details on or

before 18.10.2023 thereby giving a short period of time i.e. less than

3 ITA Nos.1218 & 1219/PUN/2023

one week, which is against the Standard Operative Procedure

(‘SOP’) issued by the CBDT dated 19.11.2020, wherein, minimum

period of 15 days is required to be given to the assessee to comply

with notices u/s 142(1) from the date of issue of the notice.

Recently, the Hon’ble Delhi High Court in the case of Dauphin

Travel Marketing Private Limited vs. ITO in W.P.(C) 8870/2023 &

CM Nos.33516-17/2023 dated 05.07.2023 taking note of this SOP

held that the grant of insufficient time to respond the notice violates

the principles of natural justice and, therefore, set-aside the

assessment. Thus, it is clear that the appellant was given

unreasonably very short period of time to respond to the notice,

which is against the principles of natural justice. In the light of the

aforesaid facts mentioned above, we find that the approach adopted

by the ld. CIT, Exemption is unreasonable and violates of the

principles of natural justice. In the circumstances, we are of the

considered opinion that it is a fit case to remand the matter to the file of ld. CIT, Exemption for de novo consideration in accordance

with law. Since the impugned order cancelling the registration

granted u/s.12AB of the Act has restored back in the circumstances

mentioned therein, the appeal in ITA No.1218/PUN/2023 filed

4 ITA Nos.1218 & 1219/PUN/2023

against the denial of approval u/s.80G is also remitted back. We

order accordingly.

allowed. Order pronounced on this 30th day of January, 2024.

Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; �दनांक / Dated : 30th January, 2024 Satish

आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “A” ब�च, 3. पुणे / DR, ITAT, “A” Bench, Pune. गाड� फ़ाइल / Guard File. 4.

आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune

ITA Nos.1218 & 1219/PUN/2023

Date 1. Draft dictated on 30-01-2024 Sr.PS 2. Draft placed before author 30-01-2024 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.