JAISWAL YOUTH FEDERATION,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI
IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH,
MUMBAI
BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER
&
SMT. RENU JAUHRI, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No. 2016/MUM/2025
(निर्धारण वर्ा / Assessment Year :2025-26)
Jaiswal Youth Federation
105, Adishakti CHS,
Behind S Habri Hotel, MG
Road, Goregaon (W),
Maharashtra-400104
v/s.
बिधम
CIT (Exemptions)
601, Cumballa Hill MTNL
TE Building Pedder Road,
Dr Gopalrao Deshmukh
Marg, Cumballa Hill,
Mumbai-400026
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAECJ8418G
Appellant/अपीलधर्थी
..
Respondent/प्रनिवधदी
निर्ााररती की ओर से /Assessee by:
Shri Bhupendra Shah
रधजस्व की ओर से /Revenue by:
Ms. Kavitha Kaushik
सुिवधई की िधरीख / Date of Hearing
14.05.2025
घोर्णध की िधरीख/Date of Pronouncement
23.05.2025
आदेश / O R D E R
PER RENU JAUHRI [A.M.] :-
This appeal is filed by the assessee against the order of the Learned
Commissioner of Income-tax (Exemption), Mumbai [hereinafter referred to as “CIT(E)”] dated 25.12.2024 rejecting the application filed in form 10AB for registration u/s 12 AB of the Income-tax Act, 1961 [hereinafter referred to as “Act”].
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The assessee has raised the following grounds of appeal: “1. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Mumbai wrongly interpreted the ancillary object clause that appellant intends to receive/spend funds outside India hence the same is in violation of the provisions of section 11. and rejected the application, which is not justified. 2. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Mumbai was not justified in giving only 5 days' time in final SCN dt. 12/12/2024 as the proceeding was getting time barred on 31/12/2024, thereby denied the appellant the opportunity of being heard, hence, violated the principal of natural justice. 3. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Mumbai erred in not giving sufficient opportunity as the appellant was unaware of the final SCN issued on Dt 12/12/2024 and rejected the application in a hurried manner. 4. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Mumbai failed to consider the documents already filed, which proved the charitable activities carried on and rejected the application on technical grounds of non-submission of details/documents. 5. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Mumbai was not justified in denying the registration ignoring the fact that the appellant is a section 8 company and involved in charitable activities, as proved from the documents already filed.”
At the outset, it is noticed that the appeal is delayed by 25 days. The assessee has filed an application for condonation of delay along with an affidavit explaining the reasons of the delay. In view of the above, we hereby condone the delay as there was a reasonable cause for the same. 4. Brief facts of the case are that the assessee is a section 8 company involved in charitable activities and had filed an application for registration in Form 10AB u/s 12A(1)(ac)(iii) of the Act. The assessee had already been granted provisional registration vide order dated 10.03.2022 from AYs 2022-23 to 2024-25. Ld. CIT(E) sought various details which were furnished by the assessee. It was noticed from the trust deed/MOA that sub clause 3(b)(2) of the P a g e | 3 A.Y. 2025-26
Jaiswal Youth Federation
Objects clause was in violation of the provisions of section 11 of the Act as the assessee intended to apply/receive funds outside India. Accordingly, a show cause notice was issued on 12.12.2024 seeking assessee’s response within five days, and thereafter, the order was passed on 25.12.2024 rejecting the assessee’s application in view of the statutory limitation to decide the matter before 31.12.2024. 5. Aggrieved with the order of Ld. CIT(E), the assessee has preferred an appeal before the Tribunal. Before us, Ld. AR has pointed out that the assessee company is a section 8 registered company, which is involved in genuine charitable activities, evidences of which were filed before the Ld. CIT(E). Ld.
CIT(E) has wrongly interpreted the Objects clause to hold that the same in violation of provisions of section 11, that too, without giving sufficient opportunity to the assessee in violation of the principles of natural justice. Only five days’ time was given in the final show cause notice and before the assessee could file any reply, the application was rejected in a hurried manner in view of the fact that proceedings were getting time barred by 31.12.2024. 6. Ld. DR, on the other hand, has relied on the order of Ld. CIT(E) and has argued that since the objects clause mentioned scope of activities outside India,
Ld. CIT(E) has rightly rejected the assessee’s application.
7. We have considered the rival submissions and perused the material placed before us. Ld. AR has informed that the assessee proposed to amend the P a g e | 4
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Jaiswal Youth Federation objects clause which has however not yet been modified. Accordingly, in the interest of justice, we deem it appropriate to restore the matter to Ld. CIT(E) for fresh decision after giving sufficient opportunity to the assessee. The assessee is at liberty to file amended MoA/Objects clause before the Ld. CIT(E) during the course of proceedings which should be taken into account by the Ld.
CIT(E).
8. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 23.05.2025. BEENA PILLAI
RENU JAUHRI
(न्यधनयक सदस्य/JUDICIAL MEMBER)
(लेखधकधर सदस्य/ACCOUNTANT MEMBER
Place: म ुंबई/Mumbai
दिन ुंक /Date 23.05.2025
अननकेत स ुंह र जपूत/ स्टेनो
आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकर आयुक्त / CIT
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT,
Mumbai
5. गार्ड फाईल / Guard file.
सत्यानित प्रनत ////
आदेशािुसार/ BY ORDER,
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सहायक िंजीकार (Asstt.