SHREE SADGURU BHAVE MAHARAJ WARKARI SAMAJ,MUMBAI vs. CIT EXEMPTION, MUMBAI

This appeal by the assessee is directed against order dated 25.12.2024 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai wherein the application for registration u/s 12AB of the Income-tax Act, 1961 (in short ‘the Act’) has been rejected. The relevant grounds raised by the assessee are reproduced as under:

“3. On verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and all the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the applicant vide DIN & Notice No. ITBA/EXM/F/EXM43/2024-25/1070015265(1) dated 29.10.2024 requesting the applicant to furnish the complete set of documents mentioned in Rule 17A(2). In response, the applicant requested for adjournment. In view of the same a reminder notice was issued to the applicant vide DIN & Notice No. ITBA/EXM/F/EXM43/2024- 25/1071037993(1) dated 09.12.2024. However, no response was received in this regard. Again, a showcause notice was issued vide DIN & Notice No. ITBA/EXM/F/EXM43/2024-25/1071330904(1) dated 18.12.2024 to comply with the above mentioned notices. However, the applicant failed to reply to any of the above mentioned notices.

4. The applicant has made no compliance to the terms of the above show cause notice. Registration under section 12AB is to be granted in terms of the provisions of section 12AB(1)(b) of the Act after being satisfied about the objects of the trust or institution, the genuineness of activities, and the compliance of any other law for the time being in force as are material for the purposes of achieving its objects. In the absence of necessary compliance by the Applicant, the undersigned is unable to arrive at a satisfactory conclusion on these parameters. As such, in view of the statutory limitation to decide on the application on or before 31.12.2024, the undersigned is left with no other option but to reject the application seeking registration under section 12AB of the Act.” 3. Before us, the Ld. counsel for the assessee filed a Paper Book containing pages 1 to 133 and also filed an application explaining the reason for non-compliance before the Ld. CIT(Exemptions). The relevant part of his affidavit is reproduced as under:

AFFIDAVITE I, Shri Keshav Sakharam Utekar, age 71 years, residing at B/2, Wadala Gulmohar CHS., behind Wadala Bus Depot, Wadala, Mumbai-400031, the Secretary of Shree Sadguru Bhave Maharaj Warkari Samaj, Mumbai, hereby declare on solemn affirmation as follows. Our trust is mainly involved in the activity of religious and education. We felicitate the student of poor vicinity and economical backword people. We also use to celebrate Ashadi Ekadashi, Kartiki Ekadashi. We also running dharmashala at Pandharpur for pilgrims' visitors in Pandharpur. Our trust office is at Room 7, Ameya Co-op. Housing Society, New Prabhadevi Road, Prabhadevi, Mumbai 400025. We normally visit the office for the meetings and other activity twice in the month. Due to my age and health I went to my native place for the rest. Hence, I could not take out the notices dated 29th Oct., 2024 and 9th Dec., 2024 from e-mail, as I have gone to my village for Diwali festival and there from I went to Pandharpur for Kartiki Ekadashi. The 3 ^ (rd) notice dated 18th Dec., 2024 I have delivered to our authorised representative on 20th Dec., 2024 for attending the matter. I have collected all the information and papers and I and our authorised representative went to C.I.T. (E)' S office on 23rd Dec., 2024. late for an hour at 3.30 p.m. There we were formed by staff that we cannot see C.I.T. as order is already passed being time barring case. This declaration is given on solemn affirmation at Mumbai, on day of April, 2025.”

3.1 We note that no counter affidavit has been filed by the Revenue. In the affidavit the trustee has explained that due to old age and busy in charitable activity at village, he could not comply the notices issued by the Ld. CIT(Exemptions). In view of bonafide reason for failure to comply the notices, in the interest of substantial justice, we feel it appropriate to restore the matter back to the file of the Ld. CIT(Exemptions) to be decided afresh with the direction to the assessee to produce all the necessary documents in support of his contention and comply the notices issued by the Ld. CIT(Exemptions) without any fail. The grounds raised by the assessee are accordingly allowed for statistical purposes.