RADHALILA VAISHNAV CHARITABLE TRUST ,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

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ITA 574/MUM/2025Status: DisposedITAT Mumbai25 March 2025AY 2024-25Bench: SHRI SHRI BR BASKARAN, ACCOUNTANT MEMBER AND NARENDER KUMAR CHOUDHRY (Judicial Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted a misunderstanding of the provisions by the assessee and the AO. It observed that the assessee claimed to have received the provisional registration but failed to produce it. For substantial justice, the Tribunal remanded the case back to the AO.

What were the facts?

The assessee applied for registration under Section 12AB of the Income Tax Act. The Assessing Officer (AO) issued notices requesting documents, including a provisional registration form (10AC). The assessee failed to provide the required documents, leading to the rejection of the application.

What were the issues?

Whether the rejection of the application for registration under Section 12AB was justified on the grounds of non-compliance with the production of provisional registration details.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12AA,Section 11AA(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI

Before: SHRI SHRI BR BASKARAN & NARENDER KUMAR CHOUDHRY

For Appellant: Shri Bharat J. Rughani, Ld. A.R
For Respondent: Shri R.R. Makwana, Ld. Sr. D.R

Per : Narender Kumar Choudhry, Judicial Member:

This appeal has been preferred by the Assessee against the order dated 29.12.2024, impugned herein, passed by the Ld.

Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) u/s 12AB(I)(b)(ii) of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2024-25.

2.

In the instant case, the Assessee had applied for registration u/s 12AB in Form no.10AB, which was taken into consideration while issuing the notice dated 19.10.2024, whereby the Assessee was requested to furnish the complete set of documents (including copy of the provisional registration in form 10AC) as mentioned in rule 11AA (2) of the Income Tax Rules 1962 {in short “Rules”}.

However, the Assessee made no compliance and therefore the Ld. Commissioner again issued a notice dated 10.12.2024, in response to which the Assessee vide letter dated 12.12.2024 made its submission.

The Ld. Commissioner on perusing the reply of Assessee, observed that production of copy of provisional order issued in form 10AC was clearly mentioned in the notice at point no.4. however, the Assessee has not provided in its submission and therefore he is having left with no other option but to reject the application seeking u/s 12AB of the Act, hence rejected the same.

3.

The Assessee, being aggrieved, challenged the said rejection of application for registration u/s 12AA of the Act.

4.

We have given thoughtful considerations to the peculiar facts and circumstances of the case. The Assessee has claimed that it has not received any such Form no.10AC, as asked by the Ld. Commissioner to produce, but in fact the Assessee has received order for provisional registration u/s 12AA of the Act and therefore on the basis of the said provisional registration, the Assessee has sought for the regular registration.

5.

We have given thoughtful considerations to the peculiar facts and circumstances of the case. It appears that there is some mis- understanding in understanding the relevant provisions of sections and Form etc. as applicable to this case by the Assessee as in spite of asking the provisional registration by the Ld. Commissioner , the Assessee neither clarified nor produced such provisional registration which resulted into rejection of the application filed by the Assessee and therefore considering the peculiar facts and circumstances in totality and for the just decision of the case and for substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee.

The Assessee is also directed to file the requisite documents and details as called for already and to be called for by the Ld.

Commissioner in due course of time for proper adjudication of the case. Thus, the case is remanded to the file of the Ld. Commissioner accordingly.

6.

In the result, the appeal filed by the Assessee stands allowed for statistical purposes.

Order pronounced in the open court on 25.03.2025.

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