Jalna Maheshwari Charitable Foundation Vs CIT (Exemption) (ITAT Pune)
The appeal before the Pune Bench of the Income Tax Appellate Tribunal (ITAT) was filed by the Jalna Maheshwari Charitable Foundation against the rejection of its application for registration under Section 12A of the Income Tax Act, 1961. The case arose after the CIT (Exemption) Pune, on March 5, 2024, rejected the trust’s application for registration, as well as the provisional registration granted in February 2023, due to perceived discrepancies in the submitted details and non-compliance with prescribed requirements.
The foundation had applied for registration under Section 12AB in September 2023. Notices were issued by the CIT (Exemption) asking the foundation to clarify discrepancies in its submission, with responses being provided by the trust. However, on January 25, 2024, a final notice was sent, asking the trust to show cause why its application should not be rejected. Despite being granted an extension until February 15, 2024, the foundation failed to provide the requested details. In light of the trust’s continued non-responsiveness, the CIT (Exemption) ultimately canceled the provisional registration on March 5, 2024, citing failure to comply with requirements under Section 12AB and related provisions.
In response, the foundation appealed before the ITAT, arguing that it had not been granted sufficient opportunity to present its case. The trust contended that it could explain the discrepancies if given another chance. The ITAT, after hearing both parties, concluded that while the CIT (Exemption) had provided notices and granted adjournments, the trust’s failure to comply with the final notice and its silence thereafter had led to the rejection. However, the ITAT found it reasonable to restore the matter to the CIT (Exemption) for one final opportunity to the foundation to explain and rectify any deficiencies in its application.
