Shikshan Prasarak Mandal Vs CIT (ITAT Pune)
Rejection of Section 12A Registration and 80G Approval Set Aside — Old Educational Trust Granted Fresh Opportunity
The Pune Bench of the ITAT allowed both appeals of the assessee-trust for statistical purposes and set aside the orders of the CIT (Exemption), Pune rejecting registration under Section 12A(1)(ac)(iii) and denying approval under Section 80G(5).
The assessee is an old charitable trust established in 1965, engaged in providing education and hostel facilities to Adivasi students and receiving government grants. Although the trust had complied with the first notice issued during proceedings under Form 10AB, the registration was ultimately rejected and provisional registration cancelled on the ground of non-response to a subsequent notice, which, according to the assessee, was missed due to lapse on the part of its counsel handling the portal access.
The Tribunal first condoned the delay in filing the appeals, holding that the assessee was prevented by sufficient and reasonable cause, and distinguished the case laws relied upon by the Revenue as being applicable to commercial entities, not charitable trusts.
On merits, the ITAT held that, in the interest of justice and principles of natural justice, the trust deserved one more effective opportunity to explain and substantiate its application. Accordingly, the ITAT remanded the matter to the CIT (Exemption) to decide the application for Section 12A registration afresh after granting reasonable opportunity of hearing. Since approval under Section 80G is consequential, that issue was also remanded for de novo adjudication.
FULL TEXT OF THE ORDER OF ITAT PUNE
