PRAMOD KIRAN SEVADHAM FOUNDATION,AHMEDNAGAR vs. COMMISSIONER OF INCOME-TAX, EXEMPTION, PUNE

PDF · subscribers
ITA 601/PUN/2020Status: DisposedITAT Pune01 June 2021AY 2019-20204 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(Exemption) erred in denying registration by considering assessment issues. The grant of registration and assessment are separate procedures, and the CIT should only consider the charitable nature and genuineness of activities.

What were the facts?

The assessee society applied for registration under Section 12AA of the Income Tax Act. The CIT(Exemption) denied registration, citing that corpus donations collected in previous years had escaped assessment and thus the society was engaged in non-charitable activities.

What were the issues?

Whether the CIT(Exemption) can deny registration under Section 12AA based on escaped assessment issues, and if assessment and registration are separate procedures.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(6)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI INTURI RAMA RAO, AM & SHRI PARTHA SARATHI CHAUDHURY, JM

For Appellant: Shri Prasad Bhandari
Hearing: 01.06.2021Pronounced: 01.06.2021

ORDER

PER INTURI RAMA RAO, AM:

1.

This is an appeal filed by the assessee society directed against the order of the Learned Commissioner of Income Tax, Exemption, Pune (‘CIT, Exemption’ for short) dated 29.09.2020 denying the grant of registration u/s 12AA of the Income Tax Act, 1961 (‘the Act’).

2.

The appellant raised the following grounds of appeal :- “1. On the facts and in the prevailing circumstances of the case, the Learned CIT (Exemption) - Pune erred in rejecting the claim of the assessee for granting registration under section 12AA of the Act without appreciating the submission made by the assessee along with the documentary proofs of all the activities carried out by the Trust.

2. On the facts and in the prevailing circumstances of the case, the Learned CIT (Exemption) - Pune erred in rejecting the claim of the assessee for granting registration under section 12AA without giving an opportunity of being heard.

3. The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.” 3. Brief facts of the case are as under :- The appellant society is registered under the Bombay Public Trust Act, 1950 on 23.06.2014. The appellant society is incorporated with the objects of promotion of education, social development, women empowerment, medical help etc. An application in Form No.10A was made on 16.03.2020 for grant of registration u/s 12AA of the Act. On receipt of the said application, the ld. CIT, Exemption had issued letter through ITBA Portal on 09.06.2020 calling for certain information/clarification so as enable him to process the application.

4. On receipt of the said questionnaire, the required information was filed by the assessee, on consideration of the said information, the ld. CIT, Exemption gave a finding that the corpus donations collected during the financial years 2016-17, 2017-18 and 2018-19 shall form part of the taxable income in the absence of any registration u/s 12AA of the Act which the appellant had failed to offer to tax and to pay tax thereon. Therefore, the ld. CIT, Exemption was of the opinion that the appellant society was engaged in activities other than the charitable activities and, accordingly, denied the grant of registration u/s 12AA of the Act vide order dated 29.09.2020. 5. Being aggrieved by the order of the ld. CIT, Exemption, the appellant is before us in the present appeal. 6. It is submitted, before us, that the appellant is engaged in the charitable activities and the ld. CIT, Exemption ought not to have rejected the grant of registration by looking into the issues of assessment.

More judgments on Section 12AA

All 4,243 judgments and leading authorities on Section 12AA →

Recent GST High Court judgments

Search GST case law →