Case Law Details
Kunashni Foundation Vs CIT (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) Pune, in the case of Kunashni Foundation Vs Commissioner of Income Tax (CIT), has directed for re-adjudication. The Assessee’s applications for registration under Section 80G and 12A of the Income Tax Act were previously rejected by the Commissioner of Income Tax (Exemption). The appellant contested that they weren’t provided a proper opportunity to present their case, which led to the tribunal’s decision to call for a fresh examination.
The appeal by Kunashni Foundation, a Section 8 Company formed in 2021, was against two separate orders of the Commissioner of Income Tax (Exemption), Pune, both dated 31.03.2023, under section 80G and 12A respectively. According to the appellant, the CIT(E) did not fully consider the evidence presented before rejecting the applications, which primarily revolved around the charitable activities of the foundation. The tribunal found merit in the appellant’s contention and observed that the CIT(E) had neither discussed the objectives of the foundation nor the nature of activities carried out by it in his order. Consequently, the ITAT decided to set aside the CIT(E) order for de novo adjudication.
Conclusion: The tribunal’s decision in the case of Kunashni Foundation Vs CIT underscores the importance of a comprehensive examination of all evidence and a fair hearing opportunity for appellants. By setting aside the orders for de novo adjudication, the ITAT has ensured that due process is followed. It will be interesting to see the outcome of the fresh examination, particularly how the CIT(E) will consider the activities of the Kunashni Foundation and how it fits within the parameters of Section 80G and 12A of the Income Tax Act.
FULL TEXT OF THE ORDER OF ITAT PUNE
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