Mangala Foundation Vs CIT (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT), Pune Bench, has set aside two separate orders passed by the Commissioner of Income Tax (Exemption) [CIT(E)], Pune, concerning Mangala Foundation. The Tribunal has remanded the applications for permanent registration under Section 12A(1)(ac) of the Income Tax Act, 1961, and for approval under Section 80G(5) of the Act, back to the CIT(E) for fresh adjudication.
The appeals were filed by Mangala Foundation against the CIT(E)’s orders dated October 9, 2024, which rejected the application for registration in Form No. 10AB (filed on April 5, 2024) and denied the application for 80G approval in Form No. 10AB (filed on May 1, 2024).
Background of the Case:
Mangala Foundation had obtained provisional registration in Form 10AC on November 1, 2023, and subsequently applied for permanent registration under Section 12A(1)(ac)(iii). The trust also sought approval under Section 80G(5), which allows donors to claim deductions for contributions.
During the process of verifying the genuineness of the assessee’s activities and compliance with relevant laws, the CIT(E) issued notices through the ITBA portal on June 5, 2024, and again on September 23, 2024, requesting information and clarifications. Specifically, the CIT(E) sought financial statements for the last three years, supporting evidence for expenditures (such as bills, invoices, and photographs), and proof of compliance with other laws.
The CIT(E) ultimately rejected the applications based on the following observations:
