Godavari Shikshan Mandal Vs CIT (ITAT Pune)
Pune: In a case highlighting the importance of timely compliance with tax authorities’ requests, the Income Tax Appellate Tribunal (ITAT), Pune bench, has restored the application for 12A registration of Godavari Shikshan Mandal, a trust. However, the tribunal also imposed a cost of ₹2,500 on the assessee, citing the negligence of the concerned Chartered Accountant in failing to submit required information to the tax authorities.
The case arose after Godavari Shikshan Mandal filed an application in Form No. 10AB on April 2, 2024, seeking registration under Section 12A of the Income Tax Act, 1961. Obtaining 12A registration is crucial for trusts and institutions to claim exemption on their income, provided they meet certain conditions and utilize their income for charitable or religious purposes as defined in the Act.
Following the submission of the application, the Commissioner of Income Tax (Exemption) [CIT(E)], Pune, initiated a verification process. A notice was issued through the ITBA portal on June 4, 2024, requesting the trust to upload specific information and provide clarifications. This step is standard procedure for the tax authorities to ascertain the genuineness of the trust’s activities and ensure compliance with relevant laws before granting the coveted tax registration status.
