Digmber Jain Trust Wagholi Vs CIT (Exemption) (ITAT Pune)
12A/80G Rejection for Delay “Insufficient Activities” Set Aside: ITAT Pune Grants One Final Opportunity to Trust
Pune ITAT set aside the orders of the CIT(E) rejecting registration u/s 12A and approval u/s 80G and cancelling the provisional registration earlier granted to the Trust.
At the outset, the Tribunal condoned a delay of 121 days in filing the appeals, holding that the delay was not deliberate and was supported by sufficient cause, following Collector, Land Acquisition vs. Mst. Katiji (SC).
On merits, the CIT(E) had rejected the applications on multiple grounds—(i) alleged delay in filing Form 10AB beyond the timeline prescribed u/s 12A(1)(ac)(iii) despite CBDT Circular No.7/2024, (ii) failure to substantiate genuineness of charitable activities with specific details such as dates, beneficiaries and expenditure, and (iii) an observation that the Trust appeared to be working for a particular community (Jain Samaj). On the same reasoning, approval u/s 80G was also denied.
The Tribunal noted that the Assessee had partly complied with notices and furnished certain documents, though not to the satisfaction of the CIT(E). Considering the totality of facts, and the Assessee’s plea that it was in a position to fully substantiate its case if given an opportunity, the ITAT held that the ends of justice would be met by restoring the matter.
Accordingly, the impugned orders rejecting registration u/s 12A and approval u/s 80G were set aside, and both matters were remanded to the file of the CIT(E) with a direction to grant one final opportunity to the Assessee to file all requisite details and documentary evidence and to decide the applications afresh in accordance with law. The Assessee was cautioned to cooperate and not seek unnecessary adjournments, failing which the CIT(E) would be at liberty to pass orders as per law. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
