VEER BACHE CHARITABLE TRUST ,MUMBAI vs. COMMISSIONER OF INCOME TAX EXEMPTIONS, MUMBAI
Income Tax Appellate Tribunal, Mumbai “F” Bench, Mumbai.
Before: S/Shri Anikesh Banerjee (JM) & Omkareshwar Chidara (AM) Veer Bache Charitable Trust 136A, Sai Siddharth 10th Road, Near Lakshmi Nagar, Khar-West, Maharashtra-400 052. Vs. Ld. CIT(Exp) 601, Cumballa Hill Telephone Exchange, MTNL Mumbai-400 026. PAN : AADTV9441M Appellant
Per Omkareshwar Chidara (AM) :-
The grounds of appeal raised in the above case by the appellant for A.Y. 2025-26 before the ITAT are reproduced below :-
1. The Learned Commissioner of Income Tax (Exemptions) erred in law and on facts by rejecting the application for registration under section 12A/12AB of the Income-tax Act, 1961. 2. The Learned Commissioner failed to appreciate that sufficient opportunity was not provided to the appellant to submit the requisite details/documents as called for.
The rejection of the application is arbitrary and unjustified, as the appellant has complied with the requirements under the law to the best of its ability and sought additional time for furnishing further details.
The Learned Commissioner failed to appreciate that the appellant is engaged in genuine charitable activities and that its objectives align with the conditions prescribed under the Income-tax Act, 1961. 5. The order passed is contrary to the principles of natural justice, as no reasonable opportunity was given to present the appellant's case or file the requested clarifications. 6. The appellant prays for a remand of the matter to the Learned Commissioner to allow a fresh opportunity to file the Veer Bache Charitable Trust
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required documents and demonstrate compliance with the provisions of the Income-tax Act.
From the above grounds of appeal before the ITAT, it is observed that the Ld. CIT(E) has rejected the registration of the Trust u/s. 12AB for two reasons :- a) The appellant-Trust filed its reply for the Show Cause Notice issued by the Ld. CIT(E) with delay of three days and hence not taken into consideration.
b)
The Memorandum of Association
(MOA) conveys the applicant’s intention to utilise the funds outside India which is a violation of section 11 of the Income Tax Act. The Ld.
CIT(E) has stated that the Trust Deed/MOA point No. 6(ii) of the objects clause allows the trustees to provide funds to deserving students to study abroad also and this violated section 11 of the Act. Hence, the application for Registration was rejected.
During the hearing before the ITAT, Ld. AR of the appellant has stated that no proper opportunity was given to the appellant to explain its case and the delay of three days is not intentional and due to administrative problems. It was pleaded that an opportunity may be given to the appellant before Ld. CIT(E) on merits. In the open court, Ld. AR of the appellant has stated the appellant Trust would amend the grounds suitably and file the same afresh.
The Ld. DR relied on the order of Ld. CIT(E).
After hearing the rival submission, it is decided to give an opportunity to the appellant to explain the case on merits before Ld. CIT(E) . The Ld. CIT(E) is directed to decide the issues on merits. If the appellant Trust amends the clause 6(ii) and file the application again, the Ld. CIT(E) may pass an order as per law. In this connection, the order of this ITAT in the case of Sila for Change Foundation (ITA no. 4274/Mum/2024, “G” Bench dated 20.12.2024) may be taken into consideration by both the parties.
Veer Bache Charitable Trust
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6. The appeal of the appellant is allowed for statistical purposes.
Order pronounced in the open Court on 18/03/2025. (ANIKESH BANERJEE)
ACCOUNTANT MEMBER
Mumbai; Dated: 18/03/2025
Copy of the Order forwarded to :
The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
BY ORDER,
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