SHRI MAHAVAISHNAV MARUTI SEVA SAMITI,THANE vs. CIT (EXEMPTION), PUNE

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ITA 3096/MUM/2022Status: DisposedITAT Mumbai03 February 2023AY 2022-233 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned order and directed the CIT to re-examine the application de novo, providing the assessee with one more opportunity to present its case. This was done in the interest of natural justice.

What were the facts?

The assessee trust applied for registration under section 80G(5)(iii) of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected the application after the assessee failed to provide requested information despite multiple notices.

What were the issues?

Whether the Commissioner erred in rejecting the application for 80G registration without providing adequate opportunity and proper application of mind, and if the assessee should be granted another chance to present its case.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI B.R. BASKARAN & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Prakash Marathe
For Respondent: Smt. Riddhi Mishra

The present appeal has been filed by the assessee challenging the impugned order dated 31/10/2022 passed under section 12AB r/w section 80G(5)(iii) of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Exemption), Pune (“learned CIT”).

2.

In this appeal, the assessee has raised the following ground:

“1. Order passed by the Learned Commissioner of Income-Tax, Exemptions, Mumbai U/s 12AB rws 80G(5)(ii) of the act dated 31/10/2022 [DIN: ITBA/EXM/F/EXM45/2022-23/1046531754(1) is Bad in law as the same is passed without (a) application of judicial mind & (b) giving a reasonable opportunity of being heard and also the analogy of the sole base of application of funds has been totally misconstrued and ignoring the fact that the Shri Mahavaishnav Maruti Seva Samiti ITA no.3096/Mum./2022 registration under section 12AB has been granted and hence the previous Order of registration U/S 80G(5)(iv) vide URN: AACTS5328MF20221 dated 08/02/2022 may please be restored. 2. The appellant craves to leave, add, alter, amend and/or delete any of the above referred grounds of appeal at the time of the hearing of the appeal.”

3.

The brief facts of the case are: The assessee trust is registered under Societies Registration Act, 1860, and Bombay Public Trust Act, 1950. The assessee is registered under section 12A(1)(ac)(i) of the Act. The assessee applied in Form 10A for obtaining registration under section 80G(5)(iv), which was approved, and a provisional registration certificate under the aforesaid section in Form 10AC was issued on 08/02/2022. Subsequently, as per the amended provisions of section 12AB r/w section 80G(5)(iii), the assessee uploaded Form 10AB. Vide impugned order, application in Form 10AB was rejected by the learned CIT.

4.

From the perusal of the impugned order, we find that the learned CIT in order to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in section 80G(5) of the Act, issued notice through ITBA portal on 30/08/2022 requesting the assessee to upload certain information/verification. The learned CIT granted another opportunity to the assessee vide notice dated 20/10/2022 to make necessary compliance and furnish the information sought. However, in absence of any submission of the assessee, the learned CIT proceeded to pass the impugned order rejecting the application made by the assessee in Form 10AB.

5.

Having heard the submissions of both sides and perused the material available on record, we are of the considered view that in the interest of Page | 2

Shri Mahavaishnav Maruti Seva Samiti ITA no.3096/Mum./2022 natural justice, the assessee should be provided with one more opportunity to present its case before the learned CIT. Accordingly, we set aside the impugned order and direct the learned CIT to de novo consider the application of the assessee trust as per law. As a result, sole ground raised by the assessee is allowed for statistical purposes.

6.

In the result, the appeal by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 03/02/2023

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