DOMBIVALI MEDICAL FOUNDATION OF IMA,THANE vs. CIT (EXEPMPTION), PUNE

PDF · subscribers
ITA 3094/MUM/2022Status: DisposedITAT Mumbai21 June 2023AY 2022-233 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) rejected the application due to a lack of sufficient details about the trust's activities. The Tribunal decided to remand the issue back to the CIT(E) to give the assessee another opportunity to provide the necessary details.

What were the facts?

The assessee trust applied for registration under Section 12AB and 80G. The CIT(E) rejected the application because the assessee failed to submit sufficient details regarding its charitable activities and substantiate them with credible evidence.

What were the issues?

Whether the CIT(E) was justified in rejecting the application for registration due to insufficient details of charitable activities. Whether the assessee should be given another opportunity to furnish the required information.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G(5)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI B. R. BASKARAN, AM & MS. KAVITHA RAJAGOPAL, JM

For Appellant: Shri Sudhir Hunnargikar &, Shri Madhav M. Khisti
For Respondent: Smt. Riddhi Mishra
Hearing: 23.03.2023Pronounced: 21.06.2023

Date of Hearing : 23.03.2023 Date of Pronouncement : 21.06.2023 O R D E R Per Kavitha Rajagopal, J M:

This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Exemption) (‘ld.CIT(E) for short) passed u/s.12AB r.w.s. 80G(5)(iii) of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2022-23, rejecting the application filed by the assessee in Form 10AB for the reason that the assessee has failed to submit the ‘note on activities’ of the trust.

2.

The brief facts are that the assessee trust is registered under the Mumbai Public Trust Act, 1950 vide Registration No. E/2894/Thane dated 04.12.2002. The assessee is engaged in the activities of imparting medical and health education and facilitating training for doctors, paramedical staff (Nurses, Compounder, laboratory technicians, ward boys etc.) mainly at Dombivli or other places and is also running medical

(A.Y. 2022-23) Dombivli Medical Foundation of IMA vs. CIT(Exemption) educational institutions and providing medical services to the people at large at economical rates and also when required free of cost. The assessee is also carrying out other allied activities relating to medical services along with health awareness activities.

It is observed that the assessee had applied for Registration u/s. 80G of the Act dated 02.08.2021 in Form 10A which was approved and provisional registration certificate was issued on 23.09.2021 for a period commencing from 23.09.2021 to A.Y. 2024-25. The assessee had then applied for permanent registration as per the amended provision of section 12AB r.w.s. 80G(5)(iii) of the Act in Form 10AB dated 01.04.2022. The assessee has received notice through ITBA portal seeking certain clarifications/information which according to the assessee was complied with but it is observed that the ld. CIT(E) has rejected the application filed by the assessee on the ground that the assessee has failed to furnish the evidences pertaining to the activities claimed to have been carried out by the assessee. The ld. CIT(E) held that the assessee has failed to prove the genuineness of activities of the assessee and has thereby not fulfilled the conditions laid down in section 80G(5)(i) to (v) of the Act.

3.

Aggrieved, the assessee is in appeal before us challenging the impugned order.

4.

We have heard the rival submissions and perused the materials available on record. It is observed that the assessee trust was established for carrying out the activities of public charitable nature relating to medical services. It is also observed that the ld. CIT(E) has rejected the assessee’s application for the reason that the assessee has not furnished the details pertaining to its activities which according to the ld. CIT(E) was very general in nature as per the ‘Note on Activities’ submitted by the assessee. The ld.

(A.Y. 2022-23) Dombivli Medical Foundation of IMA vs. CIT(Exemption) CIT(E) further held that the assessee has failed to substantiate its claim by credible evidences. In our considered opinion, we deem it fit to remand this issue back to the file of the ld. CIT(E) for the purpose of furnishing sufficient details to the satisfaction of the ld. CIT(E) to provide the assessee with one more opportunity. Hence, we direct the ld. CIT(E) to consider the assessee’s submission afresh in accordance with the law.

Therefore, this issue is remanded back to the file of the ld. CIT(E).

5.

In the result, the appeal filed by the assessee is allowed for statistical purpose.

More judgments on Section 12AB

All 5,972 judgments and leading authorities on Section 12AB →

Recent GST High Court judgments

Search GST case law →