Give Artisans Trust Vs CIT Exemption (ITAT Pune)
Trust Loses Registration Due to Staff Error – ITAT Restores 12A Application for Reconsideration- Procedural Lapse Not Fatal
Assessee Trust, engaged in promoting artisanal skill development, had filed Form 10AB on 29.06.2024 under clause (iii) of section 12A(1)(ac) seeking regular registration after provisional registration granted on 03.08.2022. CIT(E) issued a notice on 06.08.2024 seeking details of activities, beneficiary lists, and proof of expenditure. A further show-cause notice dated 29.11.2024 pointed out discrepancies such as absence of activity note, missing bills, commercial income from “sale of products,” and no apparent expenditure towards charitable objects in FY 2022–23.
As there was no response to this show-cause notice, CIT(E) presumed that Trust had nothing to say and rejected the 12A application while cancelling the provisional registration, concluding that genuineness of activities and compliance with other laws could not be established.
Before the Tribunal, Assessee contended that non-compliance was unintentional due to an error by an employee, and that sufficient evidences of charitable activities existed which could be furnished if another opportunity was granted. Department did not object to remand.
After hearing both sides, Tribunal observed that the rejection stemmed purely from procedural lapse and not from any finding that activities were non-genuine. Considering the interest of justice, it held that one more opportunity should be given to the Trust to substantiate its claim. Accordingly, Tribunal set aside CIT(E)’s order and restored the matter for de novo consideration, directing the Trust to cooperate fully and avoid unnecessary adjournments.
