JASWANTRAI BHORUKA SMARAK TRUST,MUMBAI vs. CIT (E), MUMBAI

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ITA 1351/MUM/2017Status: DisposedITAT Mumbai04 July 20185 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(Exemption) was expected to examine the case on merit. Due to potential confusion regarding the submission of details, the appeal was remanded back to the CIT(Exemption) for a fresh examination.

What were the facts?

The assessee, a charitable trust, applied for approval under section 80G of the Income Tax Act. The CIT(Exemption) rejected the application on 30/11/2016, stating no details were filed, despite the assessee claiming to have submitted them and that the order was passed beyond the stipulated six months.

What were the issues?

Whether the rejection of 80G approval was justified given the timeline and alleged non-submission of details, and whether the matter should be re-examined on merits.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12AA,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “J”, MUMBAI

For Appellant: Shri Ryansaldanha, Shri Ajit K. Srivastav-DR
Hearing: 04/07/2018

आदेश / O R D E R Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 30/11/2016 of the Ld. CIT(Exemption), Mumbai, in not

1.

2 Jaswantrai Bhoruka Smarak Trust granting approval under section 80G of the Income Tax Act, 1961 (hereinafter the Act).

2.

During hearing, the ld. counsel for the assessee, Shri Ryansaldanha, contended that the assessee filed application for granting approval under section 80G on 20/02/2014 and order was passed on 30/11/2016 beyond a period of six months. Our attention was invited to Rule- 11AA(6) of the Rules as per which the order was to be passed within six months. It was also explained that the notice dated 22/02/2016 was never received by the assessee. It was pleaded that approval under section 80G of the Act may be granted to the assessee. On the other hand, the ld. CIT-DR , Shri Ajit Kumar Srivastava, defended the denial of exemption to the assessee.

2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is a charitable trust, registered under section 12AA of the Act by the competent authority on 26/02/2014. The objects of the trust is to provide

3 Jaswantrai Bhoruka Smarak Trust educational, medical and charitable activities. The trust was constituted by trust deed dated 08/11/2011 and also registered with the charity commissioner on 01/08/2012.

The assessee made an application on 28/02/2014 for granting approval under section 80G of the Act. The Income Tax Officer (technical) issued a notice under section 142(1) of the Act on 02/04/2014, wherein, the assessee attended on 16/05/2014 and filed the necessary details. The Ld. Assessing Officer further asked for additional details which were filed on 18/06/2014. The Ld. Income Tax Officer issued another notice on 23/07/2014, which was also attended by the assessee on 12/08/2014. The ld. CIT(Exemption) passed an order on 30/11/2016 rejecting the application on the ground that no details were filed by the assessee. It seems that there is some confusion out of which probably the Ld. Income Tax Officer(Technical) did not brought to the notice of the Ld. CIT(Exemption) that the assessee has already filed the necessary details. Though there is a decision in favour of the assessee in SJA Alumni Association vs CIT (2017) 47 ITR (T) 274 (Del.)(Trib.), wherein, the application moved for 4 Jaswantrai Bhoruka Smarak Trust approval under section 80G of the Act was rejected after 11 months, it was held that the assessee is entitled to approval under section 80G of the Act still, we are of the view that the ld. CIT(Exemption) is expected to examine the case of the assessee on merit and to decide in accordance with law, therefore, in all fairness, we deem it appropriate to remand this appeal to the file of the Ld. CIT(Exemption), to examine the claim of the assessee and decide in accordance with law.

The assessee be given opportunity of being heard with further liberty to furnish evidence, if any, in support of its claim.

Thus, the appeal of the assessee is allowed for statistical purposes only.

Finally, the appeal of the assessee is allowed for statistical purposes only.

This Order was pronounced in the open court in the presence of ld. representatives from both sides at the conclusion of the hearing on 04/07/2018.

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