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Case Law Details

Case Name : Vashi Parivaar Foundation Vs CIT (Exemptions) (ITAT Pune)
Appeal Number : ITA No.517/PUN/2023
Date of Judgement/Order : 22/05/2023
Related Assessment Year :

Vashi Parivaar Foundation Vs CIT (Exemptions) (ITAT Pune)

Introduction: In a recent decision, the Income Tax Appellate Tribunal (ITAT), Pune, upheld the denial of registration under Section 12AB of the Income Tax Act in the case of Vashi Parivaar Foundation Vs Commissioner of Income Tax(Exemptions). The case underlines the need for charitable organizations to prove the genuineness of their activities to gain tax exemption benefits.

Analysis: The key dispute in this case centered on the denial of registration under Section 12AB of the Income Tax Act. Despite multiple opportunities given by the Commissioner of Income Tax(Exemptions), the assessee failed to provide necessary details to prove the genuineness of their charitable activities. As a result, the Commissioner deemed the provisional registration granted earlier invalid and denied permanent registration.

The ITAT, after careful deliberation, found no grounds to overturn the Commissioner’s decision. The Tribunal emphasized the need for organizations seeking tax-exempt status to provide adequate evidence of their charitable endeavors. It also reinforced the authorities’ right to withdraw provisional registration in the absence of necessary compliance.

Conclusion: The ruling in the case of Vashi Parivaar Foundation Vs Commissioner of Income Tax(Exemptions) is a significant development in the realm of tax exemptions for charitable activities. The decision underscores the duty of charitable organizations to demonstrate the authenticity of their operations for obtaining tax exemption benefits under Section 12AB. This case is a cautionary reminder for such organizations to maintain transparent records and engage in genuine charitable work, lest their registration be withdrawn or denied.


This is an appeal filed by the assessee against the order of ld.Commissioner of Income of Tax(Exemption) dated 03.03.2023.

2. None appeared for assessee. Notice was sent by ITAT Pune by Speed post on 17.05.2023 and has been duly served on the assessee as per tracking report.

3. On perusal of the ld. CIT(E)’s order, it is observed that ld. CIT(E) had given opportunities to the assessee vide notice dated 10.01.2023 and 29.01.2023. But assessee failed to comply the notices. The ld. CIT(E) held that in absence of details, genuineness of the activities could not be verified, charitableness of the activities could not be verified. Therefore, the ld. CIT(E) denied registration under section 12AB of the Act. And also withdrew the provisional registration granted on 27.05.2021. It is observed that assessee has not filed any details before this Tribunal. No one has appeared on behalf of the assessee. In these facts and circumstances of the case, we are of the opinion that ld. CIT(E) has rightly rejected registration, accordingly, order of ld. CIT(E) is upheld. All the grounds of appeal raised by the assessee are dismissed.

4. In the result, appeal of the assessee is dismissed.

Order pronounced in the open Court on 22nd May, 2023.

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April 2024