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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Neighbourhood Church Association‟ against the order passed by Commissioner of Income Tax (Exemption) Mumbai, [in short CIT(E)], dated 27th June, 2023, wherein the application filed by the assessee for registration under Section 12AA of the Act, was rejected.
Assessee is aggrieved with the same and has preferred the appeal raising following grounds of appeal:-
2. On the facts and in the circumstances of the case and in law the learned CIT (E) erred by taking the view that the appellant had violated as it applied “any part of its income for the benefit of any particular religious community or caste”, which is not the case. Also it is the case that the learned CIT (E) had not given opportunity to clarify the same, through show cause notice/ personal hearing, during this proceeding, which is tantamount to the violation of principle of natural justice.
3. On the facts and in the circumstances of the case and in law the learned CIT (E) erred in deciding the matter based on technical issues rather than considering nature of the activity. ”
The brief facts of the case is that the assessee is a company incorporated on 7th May, 2021, under the Companies Act, 2013, formed for the purpose of religious and charitable activities. The assessee has the object to serve to the people as per clause no. 3 of the Memorandum of Association. It filed its application for provisional registration on 16th February, 2022, in form no 10A of the Act and order of provisional registration was
Ld AR submitted a paper book and also submitted that the error of correcting nature of activities in final registration is made and assessee is not for any particular cast or creed. Therefore, there is no violation of section 12 AB of The Act.
The ld CIT DR supported the order of ld CIT [ E ] stating that correct nature of activities are not stated and further the object are in violation of section 12 AB of the Act.
We have heard the assessee‟s counsel as well as the learned CIT Departmental Representative. On perusal of the order of the learned CIT (E), in form no.10AD of the Rules, it is found that the nature of activities mentioned by the assessee in form no.10 AB, was “religious cum charitable”. However, in form no.10A, assessee mentioned the nature of activities is “charitable”. Therefore, there is mismatch of the activities in form no.10A and form no.10AB. The learned CIT(E) on verification of the trust deed or Memorandum of Articles found that the trust has mentioned religious activities which is a violation of Section 12AB(4) of the Act. The assessee contested that assessee objects are not with respect to the benefit of any particular community or caste but to the whole society. It is found that mainly the application was rejected for the
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 21.12.2023.