Bhai Vaidya Foundation Vs CIT (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune Bench has remitted the application for charitable trust registration of Bhai Vaidya Foundation back to the Commissioner of Income Tax (Exemption) [CIT(E)], Pune. The ITAT’s decision provides the assessee one final opportunity to furnish the necessary details and substantiate its claim for registration under Section 12A of the Income Tax Act, 1961, despite the previous rejection by the CIT(E) due to non-compliance and an inadvertently selected wrong section code in the application form.
The Bhai Vaidya Foundation had filed an application in Form No.10AB on March 29, 2024, seeking registration under Section 12A(1)(ac)(vi)-ITEM(B) of the Income Tax Act. To verify the genuineness of the trust’s activities and its compliance with other relevant laws, the CIT(E) issued a notice via the ITBA portal on May 24, 2024, requesting specific information and clarifications by June 10, 2024. The assessee sought and was granted an adjournment until July 12, 2024.
Upon reviewing the submitted details and documents, the CIT(E) identified certain discrepancies. Consequently, a second notice was issued on August 22, 2024, requiring clarification on these issues and a show-cause as to why the application for registration under Section 12A should not be rejected, and why the previously granted provisional registration under Section 12AB should not be cancelled. The assessee was given until August 29, 2024, to comply.
