SHREE RAJASTHAN SWETAMBER MURTI PUJAK JAIN SANGH ,MUMBAI vs. CIT(EXEMPTION) , PUNE

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ITA 5263/MUM/2024Status: DisposedITAT Mumbai02 December 2024Bench: Justice (Retd.) CV Bhadang, Hon'ble (President), Shri B R Baskaran, Hon'ble (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the reason for dismissal was the non-furnishing of basic details. Considering the Chartered Accountant's preoccupation, the Tribunal decided to grant one more opportunity to the appellant in the interest of justice.

What were the facts?

The appellant, Shree Rajasthan Swetamber Murti Pujak Jain Sangh, filed an application for registration under section 12A/12AB of the Income Tax Act. The CIT(Exemption) rejected the application for non-compliance with Section 12AB(1)(b)(i). The appellant claimed the second notice was not replied to due to the Chartered Accountant's preoccupation with filing returns.

What were the issues?

Whether the application for registration under Section 12A/12AB should be rejected due to non-compliance with a notice when there was a reasonable cause for the delay in response?

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB,Section 12AB(1)(b)(i)

AI-generated summary — verify with the full judgment below

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

Before: Justice (Retd.) C V Bhadang, Hon’ble & Shri B R Baskaran, Hon’ble

For Appellant: Shri Haresh K Shah
For Respondent: Shri R R Makwana
Hearing: 02.12.2024Pronounced: 02.12.2024

Per Justice (Retd.) C V Bhadang : By this appeal the appellant-assessee has challenged the order dated 06.08.2024 passed by the learned CIT(Exemption), Pune, whereby the application filed by the appellant for registration under section 12A/12AB of the Income Tax Act, 1961 (‘Act’ for short) has been rejected on the ground of non-compliance with the provisions of Section 12AB(1)(b)(i) of the said Act. 2. The appellant is a Trust registered under the Public Trust Act, which is assessed with the Assessing Officer at Thane and, as such, the present Shree Rajasthan Swetamber Murti Pujak Jain Sangh appeal has been filed at the Mumbai Benches. The appellant had filed the application for exemption as aforesaid. The learned counsel for the appellant submitted that there were two notices issued by the CIT(Exemption) requiring certain information/details. It is submitted that the first notice was duly replied to on 17.05.2024. It is submitted that the second notice dated 18.07.2024 issued through the ITBA portal could not be replied on account of the fact that the Chartered Accountant was busy in filing return where the due date was 31.07.2024. It was pointed out that the notice dated 18.07.2024 was required to be complied with on or before 25.07.2024. He, therefore, submitted that one more opportunity be granted to the assessee to furnish the details.

3.

The learned CIT-DR has submitted that in the circumstances appropriate order be passed.

4.

We have considered the circumstances and the submissions made. Perused the impugned order.

5.

The only reason for dismissal of the application is that the information/details which were called for from the appellant under Section 12AB(1)(b)(i) of the said Act, which according to the learned CIT(Exemption) are basic details concerning the overall nature of activities of the assessee and as such, are relevant, have not been furnished. Considering the fact that the second notice went uncompiled on account of the preoccupation of the Chartered Accountant, we find that one opportunity can be granted to the appellant in the interest of justice and fair disposal of the application.

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