CRUSADE AGAINST CANCER FOUNDATION,MUMBAI V. ITO (EXEMPTION) 1(2), MUMBAI

ITA 5471/MUM/2024

AI Insights

The case involves Crusade Against Cancer Foundation appealing against the decision of the Commissioner of Income Tax (Exemption), Mumbai, which rejected their application for renewal of registration under section 80G(5) of the Income-tax Act, 1961. The rejection was based on a technical error in the application form, where the wrong clause was cited. The Tribunal found this to be a substantial error affecting the merits of the case and decided to remand the matter back to the CIT(E) for a fresh decision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 24001 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-12-2024
• Assessment Year: 2024-2025
• Appeal Filed On: 19-10-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRIR.A. DHYANI
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A No.5471/Mum/2024 (Assessment Year 2024-25) Crusade Against Cancer Foundation, 22, Alka, 15th Road, Santacruz West, Mumbai-400 054 PAN : AAATC2881K vs ITO (Exemption) 1(2), Mumbai MTNL Building, Cumballa Hills, Peddar Road, Mumbai APPELLANT RESPONDENT Assessee by : None Respondent by : ShriR.A. Dhyani CIT DR Date of hearing : 02/12/2024 Date of pronouncement : 03/12/2024 O R D E R PER ANIKESH BANERJEE, J.M: This appeal is filed against the order of theLd. Commissioner of Income Tax (Exemption), Mumbai[for brevity, ‘Ld.CIT(E)’] passed under section 80G(5) of the Income-tax Act, 1961 (in short, ‘the Act’), for Assessment Year 2024-25, date of order 31.08.2024. 2 ITA No.5471 /Mum/2024 Crusade Against Cancer Foundation 2. At the outset, we observe that none was present when the appeal was called for hearing and no adjournment petition was filed on behalf of the assessee. However, we find that the matter could be decided even without the presence from assessee’s side on ex-parte qua. Therefore, we heard the Ld.DR and on the basis of the material available in the record and decided accordingly. 3. The assessee has taken the following grounds of appeal:- “1. In the facts and in the circumstances of the case and in law, the Ld.CIT(E) erred in rejecting the application for renewal of the registration u/s 80G in Form No.10AB dated 239.03.2024 merely on the basis of mentioning of Incorrect clause in the said application disregarding the fact that the Trust is an existing Trust which had been granted registration vide order of registration dated 27-10-2009 w.e.f. 01-04-2009. Accordingly, the Ld.CIT(E) ought to have granted certificate of final registration u/s 80G(5) of the Act registering the Trust for five years i.e. from AY 2024-25 to AY 2028-20. Without prejudice to the ground no. 1 above and in the alternate I, In the facts and in the circumstances of tie case and in law, the Ld. CIT(E) be directed to allow the appellant to file fresh application in physical mode for granting final registration from AY 2022-23 to AY 2026-27 by mentioning clause (i) of first proviso to section 80G(5) being applicable to an existing Trust instead of clause (iv) mentioned in the original application filed on 28-08-2021 being applicable to new Trust by condoning the delay in filing :he fresh application. 3. It is humbly prayed that the reliefs as prayed for hereinabove and/or such other reliefs as may be justified by the facts and circumstances cf the case and as may meet the ends of justice should 4. The brief facts of the case is that the assessee trust has been granted provisional approval under section as per clause (iii) of first proviso to sub-section (5) of section 80G of the Act, as below: - 3 ITA No.5471 /Mum/2024 Crusade Against Cancer Foundation “(iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier.” The Ld.CIT(E) rejected the application filed in Form 10AB by the assessee trust on the following grounds:- “3. On perusal of the Form 10AB filed by the assessee it was observed that the assessee has applied under clause (ii) of first proviso to sub-section (5) of section 80G i.e. for renewal of approval and not for regularisation of provisional approval. Hence this Application is hereby rejected”.” The aggrieved assessee filed the present appeal before the Tribunal. 5. We heard the Ld.DR and perused the materials available on record. The Ld.DR relied on the order of the Ld.CIT(E). However, we find from the order of the Ld.CIT(E) that he rejected the application filed by the assessee on the technical ground that the assessee has applied under section (ii) of first proviso to sub-section (5) of section 80G, i.e. for renewal of approval, in Form 10AB, instead of applying for regularization of provisional approval, under clause (iii) of first proviso to sub-section (5) of section 80G. This being a technical error and on the ground of substantial justice, in our considered view, the decision of the Ld.CIT(E) needs to be revisited. Therefore, we restore the issue to the file of the Ld.CIT(E) to consider the issue of renewal of approval afresh, substantially after providing adequate opportunity of hearing to the assessee. 4 ITA No.5471 /Mum/2024 Crusade Against Cancer Foundation 6. In the result, the appeal of the assessee bearing ITA No.5471/Mum/2024 stands allowed for statistical purpose. Order pronounced in the open court on 03rd day of December, 2024. Sd/- sd/- (NARENDRA KUMAR BILLAIYA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,दिन ांक/Dated: 03/12/2024 Pavanan Copy of the Order forwarded to: 1. अपील र्थी/The Appellant , 2. प्रदिव िी/ The Respondent. 3. आयकरआयुक्त CIT 4. दवभ गीयप्रदिदनदि, आय.अपी.अदि., मुबांई/DR, ITAT, Mumbai 5. ग र्डफ इल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai "