MANRAJI UMASHANKAR EDUCATIONAL TRUST,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI, MUMBAI

PER OM PRAKASH KANT, AM

This appeal by the assessee is directed against order dated
25.12.2024 passed by the Ld. Commissioner of Income-tax
(Exemption), Mumbai [in short ‘the Ld. CIT(E)’] cancelling application of assessee trust for registration u/s. 12AB of the Manraji Umashankar Educational Trust
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income tax Act, 1961 [in short ‘the Act’]. The grounds raised by the assessee are reproduced as under:
“1. Based on facts and circumstances of the case, and in accordance with the law, the Learned CIT (Exemptions), Mumbai erred in not granting sufficient opportunity to the appellant to submit the details &
documents, thereby violating the principles of natural justice.
2. Based on facts and circumstances of the case, and in accordance with the law, the Learned CIT (Exemptions), Mumbai was not justified in denying the final Registration is 12A(1)(ac)(iii) ignoring the fact that the Trust is an educational Institution and is undisputedly imparting education.
3. Based on facts and circumstances of the case, and in accordance with the law, the Learned CIT (Exemptions), Mumbai has not provided sufficient time to submit the documents as stated in Final
SCN issued on 18/12/2024 with compliance date 23/12/2024 (only
4 days) thereby deprive the trust to comply the same.
4. Based on facts and circumstances of the case, and in accordance with the law, the Learned CIT (Exemptions), Mumbai failed to consider the documents submitted in response to the Notice dt
05/10/2024, which proves the trust's educational activities, and rejected the 12A application on the technicality of not submitting some documentary evidence.”
2. At the outset the Ld. Counsel for the assessee submitted that appeal has been filed with delay of 6 days. The ld. counsel referred to the affidavit of the assessee and submitted that the trust did not have full time accountant to comply with the notices/order and therefore, delay of 6 days occurred in filing the present appeal.

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3. We have heard rival submissions of the parties and perused the relevant materials on record. In view of the short delay of 6 days and sufficient cause for such delay as explained by the assessee, we feel it appropriate to condone the delay in filing the appeal and accordingly, we admit the appeal for adjudication.
4. We have heard rival submissions of the parties and issue and dispute raised in appeal with reference to cancellation of registration application of the assessee, which was filed in prescribed form No. 10AB seeking registration u/s. 12AB of the Act.
The Ld. CIT(E) issued notice dated 05.10.2024 to the assessee raising certain queries in respect of the object and activity of the assessee trust. The assessee sought adjournment for complying the notice, which was granted. Thereafter, two subsequent notices for hearing dated 17.10.2024 and 23.12.2024 were non- complied by the assessee. In view of the non-compliance on the part of the assessee, the Ld. CIT(E) rejected the application of the assessee.
Before u/s, the Ld. Counsel for the assessee submitted that in view of a long list of explanation regarding object and activity asked by the ld CIT(E), the assessee could not comply in absence of a full time accountant. The Ld. Counsel for the assessee have given undertaking before us that now all required information in relation to queries raised by the ld CIT(E) has been gathered and assessee is willing to submit explanation in respect of the object and activity of the trust before the Ld. CIT(E). The Ld. counsel for the assessee

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also given undertaking that if matter is restored back the assessee will comply all the notices issued by the Ld. CIT(E).
5. In view of the facts and circumstance discussed above and in the interest of substantial justice, we feel it appropriate to set aside the order of the Ld. CIT(E) on the issue and dispute and restore the matter back to him for deciding afresh after taking into consideration submission of the assessee on the object and activity on the assessee trust. The assessee shall make due compliance of the notices issued by the Ld. CIT(E).
6. Accordingly, the grounds of appeal of the assessee are allowed for statistical purposes.
7. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 23/04/2025. (RAHUL CHAUDHARY)
ACCOUNTANT MEMBER
Mumbai;
Dated: 23/04/2025
Disha Raut, Stenographer

Copy of the Order forwarded to :

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BY ORDER,

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