HINDU NAV VARSHA SWAGAT SAMITI,MUMBAI V. CIT (EXEMPTIONS), MUMBAI

ITA 6714/MUM/2024

AI Insights

The case involves the Hindu Nav Varsha Swagat Samiti, which appealed against the decision of the Commissioner of Income-tax (Exemptions) rejecting their application for registration under section 80G of the Income-tax Act, 1961. The primary contention was an alleged error in the application form where the nature of the organization's activities was incorrectly stated as 'charitable cum religious' instead of 'public charitable'. The Tribunal found that the Commissioner had not adequately considered the appellant's explanation for this error, which was communicated through a letter dated 02.09.2024. Consequently, the Tribunal decided to set aside the Commissioner's order and remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32063 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BISWANATH DAS
• Assessee Lawyers: DHAVAL SHAH
• Keywords: Set aside
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) ITA No. 6714/MUM/2024 Assessment Year: 2025-26 Hindu Nav Varsha Swagat Samiti, B-602, Pankaj Parag Building, Mhatre CHS Ltd. L.T. Road, Dahisar, Mumbai-400068. Vs. CIT (Exemptions), Room No. 601, 6th floor, Cumballa Hill MTNL TE Building Pedder Road, Dr. Gopalrao Marg, Mumbai-400026. PAN NO. AABAH 3914 Q Appellant Respondent Assessee by : Mr. Dhaval Shah Revenue by : Mr. Biswanath Das, CIT-DR Date of Hearing : 20/02/2025 Date of pronouncement : 24/02/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 28.10.2024 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai wherein he has rejected the application of the assessee for registration u/s 80G of the Income-tax Act, 1961 ( in short the Act). The grounds raised by the assessee are reproduced as under: 1. The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in Form No. 10AD rejecting the application filed by the appellant seeking approval u/s. 80G of the Act which law. 2. The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in violation of principles of natural justice. 3. The Ld. CIT(Exemptions) has erred in law and in facts in holding that the appellant has made vi conditions stipulated u/s 80G of the Act and thereby rejecting approval u/s 80G of the Act. 4. The Ld. CIT(Exemptions) has erred in law and facts by holding that the appellant's activities are of a religious cum charitable nature which is incorrect 2. We have heard rival submissions of the parties and perused the relevant materials on record assessee submitted that while filing the Form No. 10 i.e. Form prescribed for application u/s 80G nature of the activity instead of public charitable. The Ld. counsel submitted that letter dated 02.09.2024 was filed before the concern explaining such inadvertent error however sam considered. The Ld. counsel for the assessee prayed for granting one more opportunity to demonstrate with evidence 2.1 In the facts and circumstances of the case and in view of undertaking by the trustee on behalf of the trust to explain activity of the assessee being in the nature of public charitable Hindu Nav Varsha Swagat Samiti ITA No. 6714/MUM/2024 . The grounds raised by the assessee are reproduced as under: The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in Form No. 10AD rejecting the application filed by the appellant seeking approval u/s. 80G of the Act which is invalid and bad in the eyes of The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in violation of principles of natural justice. The Ld. CIT(Exemptions) has erred in law and in facts in holding that the appellant has made violation of conditions stipulated u/s 80G of the Act and thereby rejecting approval u/s 80G of the Act. The Ld. CIT(Exemptions) has erred in law and facts by holding that the appellant's activities are of a religious cum charitable nature which is incorrect and bad in law. We have heard rival submissions of the parties and perused the relevant materials on record. Before us, the Ld. counsel for the assessee submitted that while filing the Form No. 10 i.e. Form prescribed for application u/s 80G, due to inadvertent error the nature of the activity was mentioned as charitable cum religious instead of public charitable. The Ld. counsel submitted that letter dated 02.09.2024 was filed before the concern explaining such inadvertent error however same has not been considered. The Ld. counsel for the assessee prayed for granting one more opportunity to demonstrate with evidences In the facts and circumstances of the case and in view of undertaking by the trustee on behalf of the trust to explain activity of the assessee being in the nature of public charitable Hindu Nav Varsha Swagat Samiti 2 ITA No. 6714/MUM/2024 . The grounds raised by the assessee are The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in Form No. 10AD rejecting the application filed by the appellant seeking approval u/s. is invalid and bad in the eyes of The Ld. CIT(Exemptions) has erred in law and in facts in passing the order in violation of principles of natural The Ld. CIT(Exemptions) has erred in law and in facts in olation of conditions stipulated u/s 80G of the Act and thereby The Ld. CIT(Exemptions) has erred in law and facts by holding that the appellant's activities are of a religious cum charitable nature which is We have heard rival submissions of the parties and perused . Before us, the Ld. counsel for the assessee submitted that while filing the Form No. 10 i.e. Form advertent error the was mentioned as charitable cum religious instead of public charitable. The Ld. counsel submitted that letter dated 02.09.2024 was filed before the concerned authority e has not been considered. The Ld. counsel for the assessee prayed for granting s. In the facts and circumstances of the case and in view of undertaking by the trustee on behalf of the trust to explain the activity of the assessee being in the nature of public charitable trust, we feel it appropriate to set aside the order of the Ld. CIT(Exemptions) and restore the matter back to him for deciding afresh after taking into account the documentary evidence support of public charitable activity assessee are accordingly allowed for statistical purposes. 3. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on Sd/- (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 24/02/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Hindu Nav Varsha Swagat Samiti ITA No. 6714/MUM/2024 e feel it appropriate to set aside the order of the Ld. CIT(Exemptions) and restore the matter back to him for deciding afresh after taking into account the documentary evidence support of public charitable activity. The grounds of appeal of the assessee are accordingly allowed for statistical purposes. In the result, the appeal of the assessee is allowed for nounced in the open Court on 24/02/2025. Sd/ (RAHUL CHAUDHARY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Hindu Nav Varsha Swagat Samiti 3 ITA No. 6714/MUM/2024 e feel it appropriate to set aside the order of the Ld. CIT(Exemptions) and restore the matter back to him for deciding afresh after taking into account the documentary evidences in The grounds of appeal of the assessee are accordingly allowed for statistical purposes. In the result, the appeal of the assessee is allowed for /02/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "