SHRI PARSHWANATH DIGAMBAR JAIN KHANDELWAL MANDIR TRUST,NAGPUR vs. CIT EXEMPTIONS, PUNE

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ITA 12/NAG/2020Status: DisposedITAT Nagpur15 September 2023Bench: SHRI S.S.GODARA, JUDICIA L MEMBER, DR. DIPAK P. RIPOTE (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(Exemption)'s order and remanded the case for de novo adjudication. The CIT(Exemption) is directed to discuss the objects and activities of the trust and provide categorical findings on their charitable nature after giving the assessee an opportunity to be heard.

What were the facts?

The assessee trust applied for registration under section 12AA of the Income Tax Act. The CIT(Exemption) rejected the application citing non-compliance with uploading amended trust deed and furnishing requisite details, leading to dissatisfaction about the charitable nature and genuineness of activities.

What were the issues?

Whether the CIT(Exemption) was justified in rejecting the registration application without adequately discussing the trust's objects and activities, and whether the rejection was based on perverse fact-finding.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH : : NAGPUR

Before: SHRI S.S.GODARA, JUDICIA L MEMBER & DR. DIPAK P. RIPOTE

For Appellant: Shri Kapil Hirani - CA
For Respondent: Shri Kailash Kanojiya – Sr.DR
Hearing: 31/08/2023Pronounced: 15/09/2023

ORDER

PER DR. DIPAK P. RIPOTE, AM:

1.

This is an appeal filed by the Assessee against the order of ld.Commissioner of Income Tax(Exemption), Pune rejecting the assessee’s application for registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 dated 18.12.2019. The assessee has raised the following grounds of appeal : “1. Whether on the facts and circumstances of the case the CIT (Exemptions), Pune was justified in rejecting the application of Shri Prashwanath Digambar Jain Khandelwal Mandir Trust [A] registration of trust u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961.

2. Whether the rejection order passed by the CIT Exemption, Pune on the basis of perverse fact finding is illegal and bad in law.

3. The Appellant craves leave to add or alter any other ground that may be taken at the time of hearing.”

2. The relevant paragraph 5 of the ld.CIT(E)’s order is reproduced here as under : “5. Considering the above facts, it is seen that the applicant has not uploaded the amended copy of trust deed / MoA and also not furnished the requisite details fully on the ITBA portal or complied to the notice dated 06-08-2019 to process the application for granting registration u/s 12AA of the Income Tax Act, 1961. Therefore, I am not satisfied about the charitable nature of objects as well as the genuineness of activities of the trust / institution and hence, the request for grant of registration u/s 12AA of the Income- tax Act, 1961 cannot be accepted.” Findings and Analysis :

3. We have heard ld.DR for the Revenue and perused the records. It is observed that ld.CIT(E) has rejected assessee’s application on the ground that no credible evidence regarding activities carried out by assessee has been filed, therefore, ld.CIT(E) stated that he was unable to draw any satisfactory conclusion about genuineness of the activities. However, the ld.CIT(E) has neither discussed about the objects of the Trust nor nature of activities carried out by the Assessee. In these facts and circumstances of the case, we set-aside the order of the ld.CIT(Exemption) to the ld.CIT(Exemption) for denovo ITA No.12/NAG/2020 Shri Prashwanath Digambar Jain Khandelwal Mandir Trust [A] adjudication. The ld.CIT(Exemption) shall discuss objects of the assessee, activities of the assessee trust and give categorical findings whether they are charitable or not! The ld.CIT(Exemption) shall provide opportunity to the assessee before passing the order. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.

4.

In the result, appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open Court on 15th Sept. 2023.

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