ARLEX FOUNDATION,GOREGAON EAST, MUMBAI V. COMMISSIONER OF INCOME TAX EXEMPTION, MUMBAI

ITA 6108/MUM/2024

AI Insights

The case involves Arlex Foundation, which filed appeals against the orders of the CIT (Exemption), Mumbai, rejecting their applications for registration under section 12AB and approval under section 80G of the Income-tax Act, 1961. The CIT(E) had issued notices to the assessee seeking details, but due to non-compliance and health issues of the main trustee, the applications were rejected. The assessee argued that they were not adequately informed about the earlier notices and requested a remand for fresh consideration. The Tribunal, after hearing the submissions, decided to remand the matter back to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473347 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2024-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K.R. SUBHASH
• Assessee Lawyers: DAYA BANSAL
• Section: 12A; 80G; 20

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No. 6108/MUM/2024 (A.Y. 2024-25) ITA No. 6109/MUM/2024 (A.Y. 2024-25) Arlex Foundation 1302, B-Wing, Cello Triumph, I.B. Patel Road, Opp. Laghu Udyog, Goregaon East, Maharashtra-400063 v/s. बनाम CIT Exemption 601, 6th Floor, Cumballa Hill, MTNL TE Building, Peddar Road, DR Ganpatrao Deshmukh Marg, Mumbai-400026 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAKTA0970D Appellant/अपीलार्थी .. Respondent/प्रतिवादी Assessee by : Ms. Daya Bansal Revenue by : Dr. K. R. Subhash Date of Hearing 01.01.2025 Date of Pronouncement 02.01.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- Both these appeals have 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 and P a g e | 2 ITA No. 6108 & 6109/Mum/2024 A.Y. 2024-25 ARLEX FOUNDATION approval u/s 80G of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 24.09.2024. 2. The assessee has raised following grounds of appeal: ITA No. 6108/Mum/2024 “Notices was issued by Commissioner of Income Tax (Exemption) on 5th July, 28th August and on 11 September 2024, but we were not aware about the first two notices. We have submitted the response tio the third notice on 18th Sept, 2024, according to that we have requested to grant the extention for the submission and clarification of the require documents as our CA was not well at that lime. Commissioner of Income Tax (Exemption) issued further notice on 20 sep, 2024 and sent the rejection order on 24th sept 2024. In the month of September due to heavy work load for preparing all documents as per notices with signed copy within the timeframe response is not been submitted. We are providing every detail and document requested by the Commissioner of Income Tax (Exemption). It is our humble request to consider our request and approve 12A application.” 6109/Mum/2024 “Notices was issued by Commissioner of Income Tax (Exemption) on 5th July, 28th August and on 11th September 2024, but we were not aware about the first two notices. We have submitted the response tio the third notice on 18th Sept, 2024, according to that we have requested to grant the extention for the submission and clarification of the require documents as our CA was not well at that time. Commissioner of Income Tax (Exemption) issued further notice on 20 sep, 2024 and sent the rejection order on 24th sept 2024. In the month of September due to heavy work load for preparing all documents as per notices with signed copy within the timeframe response is not been submitted. We are providing every detail and document requested by the Commissioner of Income Tax (Exemption). It is our humble request to consider our request and approve 80G application.” 3. Brief facts of the case are that the assessee had filed an application in Form 10AB seeking registration u/s 12AB of the Act. Another application in Form 10AD was filed simultaneously for approval u/s 80G of the Act. Ld. CIT(E) issued notices on 08.07.2024, 28.08.2024 and 11.o9.2024 seeking certain P a g e | 3 ITA No. 6108 & 6109/Mum/2024 A.Y. 2024-25 ARLEX FOUNDATION details. The assessee requested for an adjournment vide letter dated 18.09.2024. Final opportunity was given to the assessee vide letter dated 20.09.2024 to furnish requisite details by 23.09.2024. Since no compliance was made on that date, Ld. CIT(E) passed an order on 24.09.2024 rejecting the application of registration u/s 12AB of the Act. Consequently, the application for approval u/s 80G was also rejected. 4. Aggrieved with the orders of Ld. CIT(E), the assessee has preferred appeals before the Tribunal. 5. Before us, Ld. AR has submitted that an adequate opportunity to furnish requisite details was not provided to the assessee as earlier notices were received by the CA, who did not inform the assessee. Compliance to the last notice received could not be made due to the main trustee being unwell. Accordingly, Ld. AR has requested that the matter may be remanded back to Ld. CIT(E) for fresh consideration. Ld. DR has not objected to the said proposition. 6. We have heard the rival submissions and perused the material placed before us. In the interest of justice, we deem it appropriate to remand the matter back to Ld. CIT(E) for a fresh adjudication after considering the submissions of the assessee. The assessee is also directed to make requisite compliance before P a g e | 4 ITA No. 6108 & 6109/Mum/2024 A.Y. 2024-25 ARLEX FOUNDATION Ld. CIT(E), who is directed to decide both the applications within three months from the date of receipt of this order. 7. In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 02.01.2025. Sd/- Sd/- SAKTIJIT DEY RENU JAUHRI (उपाध्यक्ष/VICE PRESIDENT) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिनाुंक /Date 02.01.2025 अननक ेत 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 //True Copy// आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) P a g e | 5 ITA No. 6108 & 6109/Mum/2024 A.Y. 2024-25 ARLEX FOUNDATION आयकर अिीलीय अतिकरण/ ITAT, Bench, Mumbai. "