CREATIVE LEADERS FOUNDATION, PUNE V. CIT EXEMPTION, PUNE

ITA 119/MUM/2023

AI Insights

M/s. Creative Leaders Foundation, a charitable trust, filed appeals against the orders of the Commissioner of Income Tax (Exemption), Pune, which denied them registration under section 12A and approval under section 80G of the Income Tax Act. The appeals were initially time-barred, but the Tribunal condoned the delay based on the trust's lack of technical knowledge and staff competence. The main issue was the absence of required documents in the initial applications, which the trust later provided. The Tribunal decided to set aside the CIT(E)'s orders and remand the case for a fresh examination of the newly submitted documents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301162 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 13-03-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 12-01-2023
• Other Referred Cases: Collector Land Acquisition vs. MST Katiji & Others (1987) 167 ITR 471 (SC), Vijay Vishin Meghani vs. DCIT 308 ITR 250 (Bom)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Competent authority
• Section: 80G; 12A; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “C”, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.118/M/2023 Assessment Year: 2022-23 & ITA No.119/M/2023 Assessment Year: 2022-23 M/s. Creative Leaders Foundation, C/o Shri Milind Kulkarni, Flat No.2, Savali Apartment, Lane No.3, Rabaug, Kalyan West, Thane – 421 301 Maharashtra PAN: AACTC4406G Vs. CIT (Exemption), Room No.322, 3 rd Floor, Income Tax Office, PMT Building, Shankar Seth Road, Pune – 411 037 (Appellant) (Respondent) Present for: Assessee by : Shri Prakash Marathe, A.R. Revenue by : Shri K.C. Selvamani, D.R. Date of Hearing : 14 . 03 . 2023 Date of Pronouncement : 30 . 03 . 2023 O R D E R Per : Kuldip Singh, Judicial Member: At the very outset it is brought to the notice of the Bench that aforesaid appeals bearing ITA No.118 & 119/M/2023 both for A.Y. 2022-23 are time barred by 49 days and 45 days respectively, which the appellant M/s. Creative Leaders Foundation (hereinafter referred to as the assessee trust) has sought to condone the same by ITA No.118 & 119/M/2023 M/s. Creative Leaders Foundation 2 way of moving an application for condonation of delay supported with affidavit on the ground that the assessee trust being not technically aware of the statutory compliances and was not having competent staff to look after such technical issues, could not file the appeals within time and relied upon the decision rendered by Hon’ble Supreme Court in case of Collector Land Acquisition vs. MST Katiji & Others (1987) 167 ITR 471 (SC) and the decision rendered by Hon’ble Bombay High Court in case of Vijay Vishin Meghani vs. DCIT 308 ITR 250 (Bom). 2. Keeping in view the fact that the applicant trust has been newly formed and due to paucity of trained staff/technical assistance the appeals within the period of limitation could not be filed which is a “sufficient cause” to our mind to condone the delay of 49 days and 45 days in both the appeals respectively, in view of the law laid down by Hon’ble Supreme Court in case of Collector Land Acquisition vs. MST Katiji & Others (supra) wherein it is held that “it is on contention of delay that when substantial justice and technical considerations are pitted against each other, the case of substantial justice deserves to be preferred, for the other side cannot claim to have a vested right in injustice being done because of a non deliberate delay”. So the application for condonation of delay is allowed and appeals are ordered to be registered and heard in the open court. 2. Since both the aforesaid inter connected appeals filed by the assessee trust are bearing common question of law and facts the same are being disposed of by way of composite order to avoid repetition of discussion. ITA No.118 & 119/M/2023 M/s. Creative Leaders Foundation 3 3. The assessee trust by filing aforesaid appeals sought to set aside the impugned orders dated 26.09.2022 & 30.09.2022 passed by the Commissioner of Income Tax (Exemption), Pune [hereinafter referred to as the CIT(E)] qua the assessment year 2022-23 on the grounds inter-alia that: Grounds of ITA No.118/M/2023 “1. Order passed by the Learned Commissioner of Income-Tax Exemption, Pune u/s 12AB(1)(b)(ii)(B) dated 26/09/2022 (DIN: ITBA/EXM/F/EXM45/2022-23/1045951718[1]] is Bad in low 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 for the want of basic documents and Note on the Activities of the Trust and therefore the provisional registration granted U/S 124(1)(ac)(vi) vide URN:AACTC4406GE20212 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.” Grounds of ITA No.118/M/2023 “1. Order passed by the Learned Commissioner of Income-Tax, Exemption, Pune U/s 12AB rws 80G(5)(iii) dated 30/09/2022 [DIN: ITBA/EXM/F/EXM45/2022-23/1046137061(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 same for its compliance and therefore the provisional registration granted U/S 80G(5) vide URN:AACTC4406GF20210 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” 4. Briefly stated facts necessary for consideration and adjudication of the issues at hand are : the assessee trust being a charitable trust registered under Maharashtra Public Trust Act, ITA No.118 & 119/M/2023 M/s. Creative Leaders Foundation 4 1950 by filing application under prescribed form No.10AC sought to grant registration under section 12A and consequent approval under section 80G with Commissioner of Income Tax (Exemptions), Pune which were dismissed on the sole ground that the assessee trust has failed to furnish basic documents required to be filed along with application. 5. The assessee trust feeling aggrieved with the impugned orders passed by the Ld. CIT(E) has come up before the Tribunal by way of filing present appeals. 6. We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. 7. At the very outset, it is brought to the notice of the Bench by the Ld. A.R.s for the parties to the appeals that registration under section 12A and approval under section 80G have been declined by the Ld. CIT(E) on the sole ground that the assessee trust has not filed complete documents required under the statute and drew our attention towards para 3 of annexure annexed with the impugned order passed by the Ld. CIT(E), which is extracted as under: “3. It is seen that the assessee has not submitted the requisite details. Even on perusal of the application in form No.10AB, it is seen that the assessee has not submitted the basic documents which were required to be submitted along with the application viz. copy of instrument creating the trust or establishing the institution / document evidencing the creation of the trust or establishment of the institution (trust deed/MoA), notes on activities and copy of certificate of registration with Registrar of Companies or Registrar of Societies or Registrar of Public Trusts, as the case may be, etc.” ITA No.118 & 119/M/2023 M/s. Creative Leaders Foundation 5 8. Now the assessee trust has furnished complete documents viz. audit financials for the year ending 31.03.2022, photographs of the charitable events to prove the activities of the assessee trust being carried out by the assessee trust, documents pertaining to creation of trust or establishing the institution etc. However, we are of the considered view that all these documents are required to be examined by the competent authority under the Act so as to arrive at the conclusion if registration under section 12A and consequential approval under section 80G is to be granted to the assessee trust. 9. In these circumstances, the impugned orders passed by the Ld. CIT(E) are set aside and remitted back to the Ld. CIT(E) to decide afresh after considering all the documents brought on record by the assessee trust by way of paper book running into 1 to 28 pages and by considering all other documents so required to be submitted by the assessee after providing opportunity of being heard to the assessee trust. 10. Resultantly, both the appeals filed by the assessee trust are hereby allowed for statistical purposes. Order pronounced in the open court on 30.03.2023. Sd/- Sd/- (PRASHANT MAHARISHI) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 30.03.2023. * Kishore, Sr. P.S. ITA No.118 & 119/M/2023 M/s. Creative Leaders Foundation 6 Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai.