ATHLETIC SPORTS FOUNDATION ,MUMBAI V. CIT(EXEMPTION), MUMBAI

ITA 1127/MUM/2025

AI Insights

The case involves the Athletic Sports Foundation, which appealed against the orders of the Commissioner of Income Tax (Exemptions) regarding the rejection of their application for registration under section 12AB and approval under section 80G of the Income Tax Act, 1961 for the Assessment Year 2024-25. The primary issue was the rejection of their registration application due to the intention to utilize funds outside India, which was not aligned with the provisions of the Income Tax Act. The Tribunal granted the Foundation another opportunity to amend their trust deed and submit additional necessary documents, emphasizing the need for cooperation and non-frivolous adjournments during the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33017 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K.R. SUBHASH
• Assessee Lawyers: BHARAT KUMAR
• Section: 250; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No. 1127 & 1128/Mum/2025 (Assessment Year: 2024-25) Athletic Sports Foundation A-900, Versova Sandeep Sarovar, SV Mhada Four Bunglow, Nr. MTNL Tele Exchange Aza D Nagar, Andheri W, Mumbai – 400053. Vs. CIT(E) Room No. 601, 6th Floor Cumballa Hill MTNL TE Bldg, Peddar Road, Dr. Gopalrao Deshmukh Marg, Cumball Hill, Mumbai – 400026. PAN/GIR No. AAKTA1153E (Applicant) (Respondent) Assessee by Shri Bharat Kumar Revenue by Dr. K.R. Subhash, CIT-DR Date of Hearing 01.04.2025 Date of Pronouncement 04.04.2025 आदेश / ORDER PER SANDEEP GOSAIN, JM: The present appeals have been filed by the assessee challenging the impugned order 28.12.2024 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the Ld. Commissioner of Income Tax (Exemptions) / CIT(E), for the A.Y 2024-25. First of all we take up ITA No. 1128/Mum/2025. 2 ITA No. 1127 & 1228/Mum/2025 Athletic Sports Foundation, Mumbai ITA No. 1128/Mum/2025, A.Y 2024-25 2. At the outset we noticed that application for grant of registration u/s 12AB in the case of assessee was rejected by CIT(E) by observing that the object in the MOA / Trust deed conveys the intention of the assessee to utilize the funds outside India. It was also observed that the Trust ought to amended the clauses to align with the provisions of the Income-tax Act, which the applicant failed to do so. 3. However, Ld. AR stated at bar that the applicant trust is under process of amending the clauses of the object in the MOA / Trust deed and also wants to submit additional documents which are necessary for adjudicating the application for grant of registration as the same could not be filed by the assessee earlier because of circumstances beyond their control. 4. On the contrary, Ld. DR argued that the appeal filed by the assessee is without any substance and the same may be dismissed. 5. Be that as it may, in our view the interest of justice would be met in case one more opportunity is granted to the applicant to submit all the relevant documents before Ld. CIT(E) subject to cost of Rs.2000 imposed upon the assessee for his non-cooperation. This amount shall be deposited in the Prime Minister Relief Fund and a copy of 3 ITA No. 1127 & 1228/Mum/2025 Athletic Sports Foundation, Mumbai the receipt shall be placed on file before Ld.CIT(E) within 30 days from the date of receipt of this order. 6. Keeping in view our above discussion the matter is restored back to the file of CIT(E) with a direction to decide the same afresh on merits after providing fair opportunity of hearing to both the parties. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings. 7. Before parting, we make it clear that our decision to restore the matter back to the file of the Ld.CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the Ld. CIT(E) independently in accordance with law. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. ITA No. 1127/Mum/2025 9. Since, we have already restored the appeal No.1128/Mum/2025 to the file of Ld. CIT(A) for afresh adjudication and the present appeal is against the order of rejection of approval u/s 80G of the Act which 4 ITA No. 1127 & 1228/Mum/2025 Athletic Sports Foundation, Mumbai consequential in nature, therefore this appeal restored back to the file of CIT(A). 10. In the result, both the appeals filed by the assessee stands allowed for statistical purposes. Order pronounced in the open court on 04.04.2025. Sd/- Sd/- (PRABHASH SHANKAR) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 04/04/2025 KRK, PS आदेश की \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u000eथ / The Respondent. 3. संबंिधत आयकर आयु\u0019 / The CIT(A) 4. आयकर आयु\u0019(अपील) / Concerned CIT 5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, मु\u0003बई / DR, ITAT, Mumbai 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, स\u000eािपत ित //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु\u0003बई मु\u0003बई मु\u0003बई मु\u0003बई / ITAT, Mumbai "