BHARAT VARSHIYA DIYAMBER JAIN TIRTH KSHETRA TRUST ,MUMBAI, MAHARASHTRA V. INCOME TAX OFFICER EXEM. 1(1),MUMBAI, INCOME TAX APPELLATE TRIBUNAL

ITA 6553/MUM/2024

AI Insights

The case involves the Bharat Varshiya Diyamber Jain Tirth Kshetra Trust, which appealed against the decision of the CIT(Exemptions), Mumbai, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was based on the trust's failure to comply with a notice requesting further information. The tribunal found that the trust had requested an adjournment to compile the necessary information, which was not considered by the CIT(Exemptions) before rejecting the application. Consequently, the tribunal restored the matter to the CIT(Exemptions) for a fresh decision, emphasizing the need for a fair opportunity for the trust to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26244 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAILASH C. KANOJIYA
• Assessee Lawyers: MANI JAIN

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA No. 6553/Mum/2024 Assessment Year: 2025-26 Bharat Varshiya Diyamber Jain Tirth Kshetra Trust Hira Baug, C P Tank, Mumbai – 400004. PAN: AAATB 0436 B Vs. ITO (EXEM) - 1(1), Mumbai (Appellant) (Respondent) Present for: Assessee by : Shri Mani Jain Revenue by : Shri Kailash C. Kanojiya, CIT/DR Date of Hearing : 04.02.2025 Date of Pronouncement : 21.02.2025 O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER: The appeal of the assessee for the assessment year 2025-26 is directed against the order dated 19.10.2024 passed by the CIT(Exemptions), Mumbai. The assessee has raised the following grounds of appeal: “i. On the facts and circumstances of the appellant’s case and in law the ld. CIT(Exemptions) erred in rejecting the application made by the applicant in Form 10AB u/s 12A(1)(ac)(iii) for seeking registration u/s 12AB of the Income Tax Act, 1961 for the reasons mentioned in the impugned order or otherwise. ii. The Appellant craves leaves to alter, amend withdraw or substitute any ground or grounds or to add any new ground or grounds of appeal on or before the hearing.” ITA No.6553/Mum/2024 Bharat Varshiya Diyamber Jain Tirth Kshetra Trust A.Y. 2025-26 2 2. Fact in brief is that the assessee trust has filed an application in Form 10AB u/s 12A(1)(ac)(iii) seeking registration u/s 12AB of the Act. The ld. CIT(E) has rejected the application seeking registration u/s 12AB of the Act on the ground that assessee has not made compliance to the notice dated 08.10.2024 asking to furnish further information. During the course of appellate proceedings before us, the ld. Counsel submitted that assessee has made application requesting for adjournment on the ITBA portal on 15.10.2024. However, the ld. CIT(E) has not granted any adjournment and passed the order on 19.10.2024 by rejecting the application seeking registration u/s 12AB of the Act for want of information. 3. On the other hand, ld. DR supported the order of lower authorities. 4. Heard both the sides and perused the material on record. Without reiterating the fact as discussed above, the ld. CIT(E) has rejected the application of the assessee trust seeking approval u/s 12AB of the Act on the ground that no compliance was made to the show cause notice issued on 08.10.2024. After considering the submission of the ld. Counsel that assessee has requested for short adjournment to compile the information as directed by the ld. CIT(E). However, the application seeking registration u/s 12AB of the Act was rejected on 19.10.2024 without granting any further opportunity to the assessee. We consider that there is a bona fide reason as discussed for not making compliance to the notice issued on 08.10.2024, therefore in order to adjudicate the case of ITA No.6553/Mum/2024 Bharat Varshiya Diyamber Jain Tirth Kshetra Trust A.Y. 2025-26 3 the assessee on merit, we restore this file to the ld. CIT(E) for deciding de novo after providing adequate opportunity to the assessee. 5. In the result, both the appeals of the assessee is allowed for statistical purposes. Order pronounced in the open court on 21.02.2025. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 21.02.2025 Biswajit, Sr. P.S. Copy to: 1. The Appellant: 2. The Respondent: 3. The CIT, 4. The DR //True Copy// [ By Order Assistant Registrar ITAT, Mumbai Benches, Mumbai "