Case Law Details
Adimata Shakti Praishthan Vs CIT (ITAT Pune)
Introduction: The Income Tax Appellate Tribunal (ITAT) Pune has issued a significant ruling in the case of Adimata Shakti Praishthan against the Commissioner of Income Tax (Exemption). The appeal concerns the rejection of an application for registration under Section 12AB of the Income Tax Act. This article provides an in-depth analysis of the case and its implications.
Detailed Analysis: The appellant filed an application for registration under clause (iii) of Section 12A(1)(ac) of the Income Tax Act, seeking final registration under Section 12AB of the Act. However, the registering authority, the Commissioner of Income Tax (Exemption) (CIT(E)), rejected the application. The rejection was based on the authority’s inability to establish the genuineness of the appellant’s activities due to a lack of evidence and non-compliance with communicated discrepancies.
The appellant had previously failed to provide the required documents, leading to a notice from the CIT(E) to rectify the deficiencies. The appellant complied with this notice. However, discrepancies were still identified, and the appellant was issued another notice to clarify these issues. Unfortunately, the appellant claimed non-receipt of this notice and did not respond.
The ITAT emphasized the importance of provisions for the registration of trusts under Sections 12A/12AB and the granting of recognition under Section 80G of the Act. These provisions aim to facilitate the welfare of society in line with the Directive Principles of State Policy enshrined in the Indian Constitution. The ITAT noted that these provisions are designed to ensure that benefits flow to the entire society through charitable trusts.
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