M/S PRAYAS BAHUDDESHIYA SAMAJIK SANSTHA,NAGPUR vs. CIT EXEMPTIONS, PUNE

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ITA 7/NAG/2020Status: 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(E) rejected the application without discussing the details submitted by the assessee and without making a categorical finding on the charitable nature of the objects and activities. The order of the CIT(E) was set aside for fresh adjudication.

What were the facts?

The assessee's application for registration under section 12AA(1)(b)(ii) was rejected by the CIT(Exemption) for not furnishing requisite details. The assessee contended that the CIT(E) did not consider their submissions and rejected the application on frivolous grounds.

What were the issues?

Whether the CIT(Exemption) was justified in rejecting the application for registration under Section 12AA without proper consideration of the assessee's submissions and without making a finding on the charitable nature of the trust's objects and activities.

Which sections of the Income-tax Act were involved?

Section 12AA(1)(b)(ii),Section 2(15)

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 Appellant: Shri Kapil Hirani – CA
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 rejecting the assessee’s application for registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 dated 29.11.2019. 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 M/s.Prayas Bahuddeshiya Samajik Sanstha [A] registration of trust u/s 12AA(1)(b)(ii) of the Income Tax ct, 1961.

2.

Whether the rejection order passed by the CIT Exemptions, 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.” Submission of ld.AR : 2. The ld.AR vehemently submitted that order of the ld.CIT(E) is bad in law as ld.CIT(E) has not considered the submission filed by the assessee. The ld.CIT(E) has not discussed the objects of the Trust and rejected the application on frivolous grounds. The ld.AR submitted that assessee has uploaded all the details on the website. However, the ld.CIT(E) has not considered the submission of the assessee.

Submission of ld.DR : 3. The ld.DR for the Revenue relied on the order of ld.CIT(E).

Findings & Analysis : 4. The ld.CIT(E) in para 4 has stated as under : “4. Considering the above facts, it is seen that the applicant has not furnished the requisite details on the ITBA portal fully or complied to the notice dated 23-05-2019 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.” M/s.Prayas Bahuddeshiya Samajik Sanstha [A]

5.

Thus, the ld.CIT(E) has rejected the application of the assessee only on the ground that details were not furnished. However, in para 2 of the order, the ld.CIT(E) has stated that assessee had submitted partial details. Thus, it is a fact that assessee had submitted some details, however, the ld.CIT(E) has not discussed what all the details were submitted by the assessee. Without discussing the details filed by assessee, ld.CIT(E) merely rejected the application of the assessee. At the time of registration, ld.CIT(E) has to give a categorical finding whether the objects, activities of the assessee are charitable as per section 2(15) of the Act or not! In this case, the assessee is registered under Bombay Public Trust Act on 15.12.2014. Thus, assessee is in existence since 2014. The ld.CIT(E) is the head for exemption unit. It means, he could have easily verified whether assessee filed Return of Income or not! However, without verifying anything, ld.CIT(E) has rejected the application of the assessee.

6.

In these facts and circumstances of the case, we set-aside the order to ld.CIT(E) for denovo adjudication. The ld.CIT(E) shall provide opportunity to the assessee. M/s.Prayas Bahuddeshiya Samajik Sanstha [A]

7.

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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