AAJI CARE SEVAK FOUNDATION,MUMBAI V. COMMISSIONER OF INCOME TAX, CIT (EXEMPTIONS), MUMBAI

ITA 5343/MUM/2024

AI Insights

The case involves Aaji Care Sevak Foundation appealing against the decision of the Commissioner of Income Tax (Exemptions), who rejected their application for registration under section 12AA of the Income Tax Act, 1961. The primary issue was the inclusion of provisions in the Memorandum of Association that allowed charitable activities outside India, which is not permissible under the Act. Although the assessee amended the Memorandum to restrict activities within India, the Commissioner had already passed the order rejecting the application before these details were submitted. The Tribunal, considering the principles of natural justice, provided the assessee another opportunity to present the amended details before the Commissioner.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471405 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-11-2024
• Assessment Year: 2024-2025
• Appeal Filed On: 10-10-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K.R. SUBHASH
• Assessee Lawyers: RAVI SHANKAR RUTHALA
• Keywords: Set aside; Opportunity of being heard; Charitable institution
• Section: 12AA; 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE JUSTICE (RETD.) SHRI C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA No. 5343/Mum/2024 Assessment Year :2024-25 Aaji Care Sevak Foundation, B-23, Sudampuri Waggle Samruti, Chandarkar Road, Near Standard Chartered Bank, Borivali (West), Mumbai. PAN : AATCA6396H vs. Commissioner of Income Tax (Exemptions), Room No. 601, 6th Floor, Cumballa Hills, MTNL TE Building, Pedder Road, Dr. Gopal Rao Deshmukh Marg, Mumbai. (Appellant) (Respondent) For Assessee : Shri Ravi Shankar Ruthala For Revenue : Dr. K.R. Subhash, CIT-DR Date of Hearing : 21-11-2024 Date of Pronouncement : 02-12-2024 O R D E R PER B.R. BASKARAN, A.M : The assessee has filed this appeal challenging the order passed by the Ld. Commissioner of Income Tax (Exemptions) [Ld.CIT(E)], rejecting the registration u/s. 12A of the Income Tax Act, 1961 („the Act‟). 2 ITA No. 5343/Mum/2024 2. The Ld.AR submitted that the Ld CIT(E) had called for various details in connection with the application filed by the assessee seeking registration u/s 12AA of the Act. In one of the queries raised, the Ld.CIT(E) pointed out that the Memorandum of Association allowed carrying on charitable purposes outside India also, which is not permissible under the Income tax Act. Hence, the assessee amended the Memorandum of Association restricting the charitable activities carried on by the assessee within India. However, various details including the amended deed were not filed before the Ld.CIT(E) and hence the Ld.CIT(E) has rejected the application filed by the assessee.Ld.AR submitted that the assessee was in the process of amending the memorandum of association as required by Ld CIT(E) and, in the mean time, the Ld CIT(E) has passed the impugned order rejecting the application of the assessee. Accordingly, he prayed that the assessee may be provided with one more opportunity to present the details before the Ld.CIT(E). 3. We heard the Ld.DR on this issue and perused the record. It is the submission of the Ld.AR that the defects pointed out by the Ld.CIT(E) in the Memorandum of Association has since been rectified by way of amended deed. Since the assessee was in the process of carrying out the amendment, various details called for Ld CIT(E) could not be filed before the Ld.CIT(E) in time. 4. Under these set of facts, we are of the view that, in the interest of natural justice, the assessee may be provided with one more opportunity to present the details including the amended deed before the Ld.CIT(E). Accordingly, we set aside the order passed by the Ld.CIT(E) and restore all the issues to the file of the Ld.CIT(E) for examining the application of the assessee afresh duly considering the various details that may be furnished by the assessee. After affording 3 ITA No. 5343/Mum/2024 adequate opportunity of being heard to the assessee, the Ld.CIT(E) may take appropriate decision in accordance with law. 5. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 02-12-2024 Sd/- Sd/- (JUSTICE (RETD.) C.V. BHADANG) PRESIDENT (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai, Date : 02-12-2024 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, “A” Bench, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "