SOCIETY MOVED TO INSTILL LOVE WITH EMPATHY (SMILE),MUMBAI vs. COMMISSIONER OF INCOME TAX, MUMBAI
Facts
A Trust, registered under sections 12A and 80G of the Income Tax Act, applied for permanent registration under sections 12AB and 80G following new regulations. The CIT(E) rejected these applications because the assessee failed to submit all requested details within an extremely short notice period of three working days.
Held
The tribunal acknowledged the insufficient time provided to the assessee. With the agreement of both the assessee and the ld. DR, the applications for registration under sections 12AB and 80G were remitted back to the CIT(E). The CIT(E) is directed to reconsider the matters afresh, ensuring the assessee is given due opportunity to submit all necessary materials and receive a proper hearing.
Key Issues
Whether the rejection of applications for permanent registration under sections 12AB and 80G was justified, given the assessee was not afforded adequate time to provide requested details by the CIT(E).
Sections Cited
Section 12A, Section 12A(1)(ac), Section 12AB, Section 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’BENCH
Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeals have been filed by the assessee against order passed by ld. CIT(Exemption) rejecting the application under 12AB in Form 10AB and 80G in Form 10AB.
2 ITA No. 5736 & 5737/MUM/2024 Society Moved To Instill Love With Empathy (SMILE) 2. Before us it has been submitted that assessee is a Trust registered u/s.12A and also approval u/s.80G was granted from time to time since 18/08/1987. However, as per the Finance Act, 2020 all the trusts were required to be re-registered by 01/04/2021. The Trust as per the new provision while filing the application incorrectly filed under sub-clause (vi) instead of sub- clause (i) of the Section 12A (1)(ac). The Trust was allotted provisional registration for three years only. Thereafter, assessee applied on Form 10AB for permanent registration. Ld. CIT (E) asked for various details vide show-cause notice dated 09/07/2024, in response the assessee filed the details in two parts. However, the assessee further received notice on 18/09/2024 and 19/09/2024 asking for details to make the submissions on or before 22/09/2024. However, since there were only three working days, assessee could not submit the entire details and accordingly, the order has been passed by the ld. CIT (E). It was requested that matter should be restored back to the file of the ld. CIT (E), so that all the submissions required by him can be filed. 3. Ld. DR also does not have any objection if the matter is restored back to the file of the ld. CIT (E). 4. After considering the aforesaid fact that further details as required by the ld. CIT (E) could not be filed as there were only three working days and now before us all the details have been filed. Accordingly, the matter is restored back to the file of the ld. CIT(E) to consider these submissions and evidences and decide
3 ITA No. 5736 & 5737/MUM/2024 Society Moved To Instill Love With Empathy (SMILE) the issue afresh and pass the order in accordance with the law after giving due opportunity of hearing to the assessee. In case of approval u/s.80G, the same has been rejected on the ground that application u/s.12AB has been rejected, accordingly, this issue is also remitted back to the file of the CIT (E) to decide afresh after considering all the materials and submissions made by the assessee.
In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 31st December, 2024.
Sd/- Sd/- (GIRISH AGRAWAL) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 31/12/2024 KARUNA, sr.ps Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// BY ORDER,
(Asstt. Registrar) ITAT, Mumbai
