HEART RICH FOUNDATION ,MUMBAI vs. COMMISSIONER OF INCOME TAX , EXEMPTION, MUMBAI

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ITA 2354/MUM/2025Status: DisposedITAT Mumbai05 June 2025AY 2021-224 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(E) had rejected the applications for registration under Section 12A and Section 80G because the assessee did not comply with the queries raised, despite opportunities. However, before the Tribunal, the assessee's counsel requested one more opportunity to furnish the required details. Based on this assurance and concession, the Tribunal decided to remit the issues back to the file of the CIT(E). The assessee is directed to furnish all supporting details for its claims for registration under Sections 12A and 80G without fail. The CIT(E) is further directed to examine these details and decide the issues afresh after providing the assessee with a reasonable and adequate opportunity of being heard. The Tribunal allowed both appeals for statistical purposes.

What were the facts?

The assessee, Heart Rich Foundation, filed appeals against two orders dated 25.12.2024 passed by the Commissioner of Income-tax (Exemptions), Mumbai (CIT(E)). These orders rejected the assessee's applications for registration under Section 12A and Section 80G of the Income-tax Act, 1961, for assessment years 2021-22 and 2022-23. The CIT(E) rejected the applications because the assessee failed to comply with queries raised by the authority, despite being given opportunities. The assessee then approached the Income-Tax Appellate Tribunal (ITAT), Mumbai, seeking a further opportunity to furnish the required details.

What were the issues?

1. Whether the rejection of the application for registration under Section 12A of the Income-tax Act, 1961, by the CIT(E) was justified, considering the assessee's non-compliance with queries. (Question of law and fact, turning on Section 12A). 2. Whether the denial of registration under Section 80G of the Income-tax Act, 1961, by the CIT(E) was justified, consequent to the rejection of the Section 12A application. (Question of law and fact, turning on Section 80G). Assessee's Contention: The assessee's counsel pleaded for one more opportunity to comply with the queries raised by the CIT(E), assuring that all requested details would be filed if a second chance was granted. Revenue's Contention: The judgment records no specific arguments from the revenue's side before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G

AI-generated summary — verify with the full judgment below

Before: SHRI SAKTIJIT DEY & SHRI NARENDRA KUMAR BILLAIYA

For Appellant: Shri Tanzil Padvekar, Shri Ritesh Misra
For Respondent: Shri Tanzil Padvekar, Shri Ritesh Misra
Hearing: 03.06.2025Pronounced: 05.06.2025

Heard together (2 matters)

ITA No. 2354/MUM/2025
ITA No. 2355/MUM/2025

Read from the judgment's own cause title. This page is filed under one of them.

2.

Representatives were heard at length, and case records carefully perused.

3.

On perusal of the impugned order of the Ld. CIT(E), we find that though opportunities were given to the assessee, the assessee did not comply with the queries raised by the CIT(E). On receiving no plausible reply, the CIT(E) rejected the application, denying the registration u/s 12A of the Act. Since the application for registration u/s 12A of the Act was denied, the CIT(E) also denied the registration u/s 80G of the Act.

4.

Before us, the counsel pleaded for one more opportunity to comply with the queries raised by the CIT(E). It is the say of the counsel that if given a second chance, all the details asked by the CIT(E) shall be filed. On such concession A.Y. 2021-22 Heart Rich Foundation and assurance, we remit the issues to the files of the CIT(E). The assessee is directed to furnish all the details in support of its claim for registration u/s 12A and 80G of the Act without fail. The CIT(E) is directed to examine the same and decide the issue afresh after affording a reasonable and adequate opportunity of being heard to the assessee.

5.

In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 05.06.2025.

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