CA Manakchnad L.Baheti

CA Manakchnad L.BahetiOver 90 % of applications for approval under Section 80-G/12A of are rejected by Income Tax Department shows RTI

Income tax department Pune leads in collection of Income-tax since many years. Latest revenue report reveals that non corporate income tax collection has increased substantially. But at the same time there is widespread complaint from taxpayers with functioning of Income tax department, particularly no timelines for discharge of work and not following the citizen’s charter.

NGO are complaining that Income tax department is not approving Section 80-G / 12-A application for months/years together.

With a view to identify how many 80G / 12A applications were approved by Income -tax department Pune, I, CA M L Baheti (RTI activist) moved RTI application on 9.7.2021. Reply to the application revealed that around 90% of the applications filed by NGO have been rejected for the reason best known to the Income-tax department Pune. Data was obtained for the period pertaining to 1.4.2019 to 31.3.2021 in respect of no of applications filed & approved shows the following alarming facts.

  Application ­ Application  
  U/s 12A % U/s 80-G %
Applications filed 4881 100­ 2070 100
Application approved 355 7.27 379 18.30
Application rejected 2471 50.62 961 46.42
Unexplained applications 2055 42.10 730 35.26

This is situation of Pune Zone only, imagine the status for entire country. In reply to RTI, Income tax department claimed that time limit for approval of Section 12-A & 80-G of the Act has been followed. However they have denied giving reason for rejection and time taken for approval too. Department also denies to share broad categories of reasons for rejection. Department  have failed to supply the norms prescribed for decision making process, including channels of supervision and ultimate responsibility which is mandatory as per sec 4(1) (iii) and (iv) of the R T I Act. Instead of giving information about norms prescribed, channels of supervision & accountability which is not being followed at all departments have been given about the organisational structure which is not asked for.

From the above it is clear that the application for Approval of majority i. E. 80 to 90 % of cases is being rejected. This non transparency of department has become hurdle for charitable trusts and NGOs as the whole country is moving from Covid-19 pandemic situation where role of NGO & fast approval for 80-G is very important. Finance Ministry needs to take note of the same and devise specific guidelines alongwith timeline to be followed by dept so that the hassle will be reduced and the NGO sector will be saved from harassment and delay.

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TEXT OF THE RTI ORDER IS AS FOLLOWS:-

OFFICE OF THE
COMMISSIONER OF INCOME TAX (EXEMPTIONS), (HQ),
PUNE,
3rd Floor, C-Wing, Room No.323, PMT Building,
Shankarshet Road, Swargate, Pune-411 037

NO./PN/CIT(E)/CP10/00182/2021-22/

Date-30/07/2021

Name and address of the applicant Shri Manakchand Laxman Baheti
Harihar Apartment, 728/B, Sadashiv Peth, Kumthekar Road, Pune – 411030
Date of receipt of application 14-07-2021
Date of order 30-07-2021

ORDER U/S 7(1) OF THE RIGHT TO INFORMATION ACT, 2005 

1. The applicant has filed an application under the Right to Information Act, 2005 which has been received by this office from the office of the DGIT(Inv), Pune on 14.07.2021 for furnishing following information:

The applicant has sought for information for the period 01/04/2019 to till date in respect of applications for 80G and 12A certificates, vide Sr. No. (i), (ii), (iii) of his application. These details are supplied as under for the period from 01/04/2019 to 31/03/2021. The details from 01/04/2021 onwards are not available since the jurisdiction no longer rests with this office.

Q.i) No. of Applicants applied for 80G and 12A certificates in Pune region/division/circle.

Ans: Total applications received during 01-04-2019 to 31/03/2021:

Applications u/s 12A – 4881

Applications u/s 80G – 2070

Q.ii) No. of NGO/applicants whose application approved.

Ans: No. of applications approved during 01-04-2019 to 31/03/2021:

Applications approved u/s 12A – 355

Applications approved u/s 80G – 379

Q.iii) No. of Application rejected, reason for rejection I) want of Documents, II) objective not suitable, III) any other reason.

Ans: No. of applications rejected during 01-04-2019 to 31/03/2021:

Applications rejected u/s 12A – 2472

Applications rejected u/s 80G — 961

The reason for rejection may vary in each case and such details are not maintained separately in the records of the CPIO and are not required to be maintained in such a way. Hence information cannot be supplied.

Q.iv) Time taken for approval for each of approved application.

Ans: Time limit for disposal of application prescribed under the relevant provisions of section 12AA and 80G of the Act, has been followed.

Q.v) Provide copy of Decision making process including channels of supervision and accountability, also norms set for discharge of this function in terms of section 4(1)(b)(iii) and (iv) of RTI act.

Ans: The details of organizational structure of the 0/o CIT(E), Pune is supplied herewith.

2. Under section 19 of the Right to Information Act, 2005, the applicant may prefer appeal against the above disposed order before the Commissioner of Income Tax, (Exemptions), Pune, P.M.T. Bldg. Swargate, Pune-411037, Within 30 days of receipt of this order.

Pune.

Date: 30/07/2021

Sd/-
(Sunil Mehetre)
Central Public Information Officer
Income Tax Officer (Exemptions)(HQ)
Pune

Copy to (i) T e Appeallate Authority – The Commissioner of Income Tax(Exemptions) , Pune

(ii) Shri Manakchand Laxman Baheti Harihar Apartment, 728/B, Sadashiv Peth, Kumthekar Road, Pune – 411030

Central Public Information Officer
Income Tax Officer (Exemptions)(HQ)
Pune

Organizational StructureDownload Reply received against RTI in respect of section 80G /Section 12A approval in Pune

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