INDIAN FEDERATION OF ULTRA SOUND IN MEDICAL AND BIOLOGY ,MUMBAI vs. CIT (EXEMPTION), MUMBAI

IN THE INCOME-TAX APPELLATE TRIBUNAL “C” BENCH,
MUMBAI
BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
&
SMT. RENU JAUHRI, ACCOUNTANT MEMBER
Indian Federation of Ultra
Sound In Medical and Biology
524, 2nd Floor Above Shri
Krishna Restaurant, S.
V.P. Road, Opera House,
Mumbai-400004
v/s.
बनाम
CIT(Exemptions), Mumbai
Room No. 601, 6th Floor,
Cumballa Hill, MTNL TE
Building, Pedder Road, Dr.
Gopalrao Deshmukh Marg,
Cumballa Hill,
Mumbai-400026
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAATI4712R
Appellant/अपीलार्थी
..
Respondent/प्रतिवादी

Assessee by :
Shri K Gopal a/w Ms. Neha
Paranje
Revenue by :
Shri Manish Sareen

Date of Hearing
06.01.2025
Date of Pronouncement
07.01.2025

आदेश / O R D E R

PER RENU JAUHRI [A.M.] :-

This appeal has been filed by the assessee against the orders of the Learned Commissioner of Income-tax (Exemption), Mumbai [hereinafter referred to as “CIT(E)”] rejecting application for registration u/s 12AB of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 28.09.2024. The assessee has raised following grounds of appeal:

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Indian Federation of Ultra Soud in Medical and Biology

“1. The Commissioner of Income Tax (Exemption) [hereinafter referred to as the CIT(E)] erred in passing an order dated 28.09.2024 and thereby rejecting the registration under section 12AB of the Act while deciding the application in Form 10AB seeking approval under section 80G(5)(iii) of the Act without appreciating the facts and circumstances of the case. The order passed by the CIT(E) is not in accordance with the law. Thus, the same may be set aside.
2. The CIT(E) failed to appreciate that the Appellant has been granted a provisional registration under section 12A(1)(ac) (i) of the Act on 24.09.2021
and the same is valid from A.Y. 2022-23 till the A.Y. 2026-27. Thus, the CIT(E) is not justified in rejecting the registration under section 12A of the Act while deciding the application seeking approval under section 80G(5)(iii) of the Act.
3. The CIT(E) further, failed to appreciate that the objectives of the Appellant are to carry out the charitable activities and the same do not violate the provisions of section 11 of the Act. Hence, the CIT(E) is not justified in rejecting the registration under section 12AB of the Act. The order dated 28.09.2024
passed by the CIT(E) is not justified and the same may be set aside.
4. The CIT(E) is not justified in passing the order dated 24.09.2021 rejecting the registration under section 12AB of the Act without providing the Appellant a reasonable opportunity of being heard. The order passed by the CIT(E) is in violation of the principles of natural justice and the same may be set aside.
5. The Appellant seeks leave to add, alter and amend the above grounds whenever required.”

Indian Federation of Ultra Soud in Medical and Biology

However, the provisional approval u/s 80G was valid only upto 31.03.2024, the assessee, therefore, applied for regular approval u/s 80G of the Act vide application dated 30.03.2024. However, Ld. CIT(E) erroneously rejected its application for grant of registration u/s 12AB of the Act instead of deciding the application for approval u/s 80G. He, therefore, submitted that the order passed by the Ld. CIT(E) is unlawful and void ab initio.
Ld. DR has not controverted the submissions made by Ld. AR.
4. We have heard the rival submissions and perused the material placed before us. It is clear that Ld. CIT(E) has wrongly rejected the assessee’s registration u/s 12AB even though the application was made for approval u/s 80G and not for regular registration u/s 12AB. Relevant portion of the order of Ld. CIT(E) is reproduced herewith:
“1. M/s Indian Federation Of Ultra Sound In Medicine And Biology(hereinafter 'the assessee' or 'the applicant) filed an application in Form 10AB u/s 80G(5) (iii) seeking approval under section 80G of the Act.
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4.Since 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 before30.09.2024, the undersigned is left with no other option but to reject the application seeking registration under section 12AB of the Act.”

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Place: म ुंबई/Mumbai
दिनाुंक /Date 07.01.2025
अननकेत स ुंह राजपूत/ स्टेनो
आदेश की प्रतितलति अग्रेतिि/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.

सत्यावपि प्रवि ////
आदेशानुसार/ BY ORDER,

उि/सहायक िंजीकार (Dy./Asstt.