MADHUSUMAN FOUNDATION, MUMBAI V. CIT EXEMPTION, PUNE

ITA 1057/MUM/2023

AI Insights

The appeals filed by Madhusuman Foundation were directed against the orders of the ld. CIT(Exemption), Pune, which were based on identical facts and similar issues. The primary contention was the rejection of the assessee's application in Form 10AB due to non-compliance with the submission of supporting documents as requested by the ld. CIT(Exemption). The assessee argued that the e-submission portal was closed, preventing compliance. The tribunal found merit in the assessee's argument and restored the cases to the ld. CIT(Exemption) for a fresh decision, emphasizing the need for a fair opportunity to be heard.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130271 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 19-07-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 30-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

P a g e | 1 ITA Nos.1057 & 1058/Mum/2023 Madhusuman Foundation CIT Exemption IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA Nos.1057 & 1058/Mum/2023 (A.Y. 2022-23) Madhusuman Foundation Unit 3/601/D, M/s Shreenathji Dev Pvt. Ltd., Wi-Fi IT Park, Wagle Estate, Thane – 400604 Vs. CIT Exemption Room No. 322, 3 rd Floor, Income Tax office, PMT Building, Shankar Seth Road, Pune – 411 037 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAOCM6350Q Appellant .. Respondent Appellant by : None Respondent by : Riddhi Mishra Date of Hearing 20.07.2023 Date of Pronouncement 31.07.2023 आदेश / O R D E R Per Amarjit Singh (AM): Both these appeals filed by the assessee are directed against the different order of ld. CIT(Exemption) Pune. Both these appeals are based on identical facts and similar issues therefore, for the sake of convenience these appeals are adjudicated together. ITA No.1058/Mum/2023 “1. Order passed by the Learned Commissioner of Income-Tax, Exemption, Pune u/s 12AB(1)(b)(ii)(B) dated 29/09/2022 (DIN:ITBA/EXM/F/EXM45/2022-23/1046104045(1)] is Bad in law as (a) it seems that the Judicial Mind has not been applied, (b) the Proper Reasonable Opportunity of being Heard has not been given & (c) Rejected only for the want of Note on the Activities of the Trust or Rebutting the P a g e | 2 ITA Nos.1057 & 1058/Mum/2023 Madhusuman Foundation CIT Exemption same for its compliance and therefore the aforesaid Original Order passed may please be restored. 2. The appellant craves to leave, add, alter, amend and/or delete any of the above referred grounds of appeal at the time of the hearing of the appeal.” 2. The assesse filed application in Form 10AB under clause (iii) of Sec. 12A(1)(ac) of the Act on 30.03.2022. The ld. CIT(Exemption) with a view to verify the genuineness of activities of the assessee issued a notice through ITBA Portal on 25.07.2022 requesting the assesse to upload certain other information/clarification viz. date of commencement activities, date of expiry of provisional certificate, date of any other law applicable for achievements of the objects and the proof of compliance of the said law, proof of identity of name trustee/directors, year wise list of donation received, note on activities carried out etc. The assessee was requested to submit his compliance by 09.08.2022. However, the assessee has failed to make compliance by the due date before the ld. CIT(Exemption). Consequently, the ld. CIT(Exemption) has rejected the application of the assessee. 3. Heard the ld. D.R and perused the material on record. As per the amended provision of Sec. 12AB of the Act the assessee has uploaded Form 10AB on 31.03.2022. The ld. CIT (Exemption) has rejected the application in Form 10AB for failing to compliance with the provision of Sec. 12AB(1)(b)(i) of the Act as the assessee has not submitted supporting document/evidence as mentioned in the notice issued by ld. CIT (Exemption). The assessee submitted that while filing Form 10AB the basic required document and information was submitted, however, the other document required by the ld. CIT(Exemption) could not be submitted as e-submission on income tax portal was closed by the assessing authority on 10.09.2022, therefore, it was beyond the control of assessee to submit any such documents. P a g e | 3 ITA Nos.1057 & 1058/Mum/2023 Madhusuman Foundation CIT Exemption Looking to the above facts and circumstances, we restore this case to the file of the ld. CIT(exemption) for deciding afresh on merit after affording adequate opportunity to the assessee. The assessee is also directed to make necessary compliance before the ld. CIT(Exemption) without any failure, therefore, the appeal of the assesse is allowed for statistical purposes. ITA No. 1057/Mum/2023 4. On the similar reason as discussed supra while adjudicating the appeal of the assessee vide ITA No. 1058/Mum/2022 the ld. CIT(Exemption) has also rejected the application filed by the assessee in Form 10AB under clause (iii) of first proviso to sub-section (5) of Sec.80G of the Income Tax Act, 1961 for not making compliance to the notice issued by the ld. CIT (Exemption) for filing of supporting documents. In this case also the assesse could not make compliance for the similar reason as mentioned in the ITA No. 1058/Mum/2023 before the ld. CIT(Exemption). Therefore, applying the finding of ITA No.1058/Mum/2023 mutatis mutandis this case is also restored to the file of the ld. CIT (Exemption) for deciding afresh on merit after affording adequate opportunity to the assessee. The assessee is also directed to make required compliance before ld. CIT(A) without any failure, therefore, the appeal of the assessee is allowed for statistical purposes. 5. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 31.07.2023 Sd/- Sd/- (Amit Shukla) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 31.07.2023 Rohit: PS P a g e | 4 ITA Nos.1057 & 1058/Mum/2023 Madhusuman Foundation CIT Exemption आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / 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) आयकर अिीिीय अतिकरण/ ITAT, Bench, Mumbai.