Nirmal Foundation Nashik Vs CIT (Exemption) (ITAT Pune)
Summary: A charitable trust challenged the order of the CIT (Exemption) rejecting its Section 12A registration application and canceling the provisional registration under Section 12AB. The rejection was based on the trust’s failure to respond to notices issued by the CIT(E) seeking verification of the genuineness of its activities. The trust submitted before the Hon’ble ITAT that the rejection resulted from insufficient opportunity and their Chartered Accountant’s preoccupation, which led to non-compliance. The Tribunal, considering these submissions, allowed the appeal “for statistical purposes” and remanded the case back to the CIT(E), instructing them to provide the trust one final opportunity to comply with the requirements.
However, the Tribunal imposed a cost of Rs. 2,500 on the Trust due to non-compliance.
This order, dated April 11, 2025, addresses an appeal filed by charitable Trust against the Commissioner of Income Tax (Exemption), Pune’s decision to reject their application for registration under Section 12A of the Income Tax Act and cancel their provisional registration under Section 12AB.
Key Facts and Timeline:
- The Trust filed an application (Form 10AB) on March 26, 2024, seeking registration under section 12A(1)(ac)(iii).
- The CIT(E) issued a notice through the ITBA portal on May 20, 2024, requesting certain information to verify the genuineness of the Trust’s activities, with compliance requested by June 4, 2024.
- After receiving no response, the CIT(E) issued another notice on July 11, 2024, asking the Trust to explain why their application shouldn’t be rejected and their provisional registration cancelled.
- Despite providing a third opportunity, the Trust consistently failed to respond to these statutory notices.
- Consequently, on September 3, 2024, the CIT(E) rejected their application and cancelled the provisional registration previously granted on September 24, 2021.
Grounds for Appeal:
