SHRI PRATISHTHAN TURST,NAGPUR vs. CIT EXEMPTION, PUNE

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ITA 419/NAG/2019Status: DisposedITAT Nagpur12 September 2023Bench: SHRI S.S.GODARA (Judicial Member), DR. DIPAK P. RIPOTE (Accountant Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(Exemption) did not discuss the objects or activities of the trust and failed to provide a proper opportunity to be heard. Therefore, the order of the CIT(Exemption) was set aside for fresh adjudication.

What were the facts?

The assessee, Shri Pratishthan Trust, applied for registration under Section 12AA of the Income Tax Act. The CIT(Exemption) rejected the application citing non-compliance with a notice and dissatisfaction with the charitable nature and genuineness of activities.

What were the issues?

Whether the CIT(Exemption) erred in rejecting the registration application without a proper discussion of the trust's objects and activities, and without providing an adequate opportunity to be heard.

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 & DR. DIPAK P. RIPOTE

For Respondent: Shri Kailash Kanojiya – Sr.DR
Hearing: 31/08/2023Pronounced: 12/09/2023

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 dated 31.10.2019 under section 12AA(1)(b)(ii) of the Income Tax Act, 1961. The assessee has raised the following grounds of appeal :

1. The Order passed by Commissioner of Income Tax Exemption Pune is erroneous illegal, invalid and bad in Law. Shri Pratishthan Trust [A]

2. On the facts and in the Circumstances of the case the learned CIT Exemption Pune has erred in refusing to grant the registration sought U/s 12AA(1) of the I.T. Act, 1961 by assessing the reasons incorrectly.

3. The Honourable CIT Exemption Pune erred in disposing off the application filed by the applicant Shree Pratishthan Trust in Form No. 10A for approval of the Trust U/s 12AA of I.T. Act 1961 on 27-04-2019 within six months from the date of application.

4. The learned CIT (Exemption) Pune has erred in not giving to the applicant trust proper opportunity of being heard before rejecting the application for registration U/s 12AA of the I.T. Act 1961.

5.

The Honourable CIT Exemption Pune ought not to have rejected the application for registration U/s 12AA of the IT Act 1961.

6. Any other ground shall be prayed at the time of hearing.” The appeal came up hearing on 31st Aug, 2023. At the time 2. of hearing, no one appeared on behalf of the assessee.

Brief facts of the case : 3. The Assessee is a Trust registered under BPT Act, 1950 vide Registration Number E-807 0 dated 23.01.1981. The assessee trust applied for 12AA(1)(b)(ii) of the Income Tax Act, 1961. Shri Pratishthan Trust [A]

4.

On perusal of the trust documents, the ld.CIT(E) held as under: “6. Considering the above facts, it is seen that the applicant has not complied to the notice dated 25-10-2019 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 : 5. 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 adjudication. The ld.CIT(Exemption) shall discuss objects of the assessee, activities of the assessee trust and give categorical Shri Pratishthan Trust [A] 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.

6.

In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 12th Sept. 2023.

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