SAI RAM CHARITABLE TRUST , MUMBAI V. CIT EXEMPTION, PUNE

ITA 1964/MUM/2023

AI Insights

The case involves Sai Ram Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Pune, which rejected their application for permanent registration under section 80G of the Income Tax Act, 1961. The Trust argued that the CIT(E) did not consider the details and evidence provided in their application and failed to give a proper hearing before rejecting the application. The CIT(E) had issued an e-notice through the ITBA portal requesting additional information to verify the genuineness of the Trust's activities, but the Trust's response was deemed insufficient, leading to the rejection of their application. The Tribunal, after hearing the arguments, decided to set aside the CIT(E)'s order and remand the case for a fresh evaluation, emphasizing the need for adherence to the principles of natural justice.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299412 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: G
• Next Hearing Date: 04-09-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 25-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Set aside
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER & SHIR PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No. 1964/Mum/2023 (Assessment Year 2022-23) Sai Ram Charitable Trust A57/339, 1 st Floor, Anil Chambers, Near Sadhu Vaswani Garden, Ulhasnagar-421001 Maharashtra Vs. CI T Exe mption, Room No. 322, 3 rd Floor, Income Tax Office , PMT Building, Shankar Seth Road, Pune-411037. Maharashtra (Appellant) (Respondent) PAN No. AAATO0130B Assessee by : None Revenue by : Shri.Dr.Kishore Dhule.CIT. DR Date of hearing: 05.09.2023 Date of pronouncement : 06.09.2023 O R D E R PER PAVAN KUMAR GADALE, JM: The assessee has filed the appeal against the order of the Commissioner of Income Tax (Exemption)(CIT(E), Pune passed u/s 80G of the Income Tax (Act), 1961. The assessee has raised the following grounds of Appeal: “On the facts and circumstances of the case, the Learned Commissioner of Income Tax Exemption, Pune has erred in rejecting the application filed by the appellant Trust for grant of exemption u/s 80G of the Income-tax Act, 1961. Page | 2 ITA No.1964/Mum/2023 A.Y.2022-23 Sai Ram Charitable Trust On the facts and circumstance of the case the Learned Commissioner of Income Pune has ignored the details filed and evidences of activities undertaken placed on his record without assigning any proper reason.” 2. The brief facts of the case are that, the assessee is charitable trust. The assessee as per the amendment in the finance Act 2020 has obtained the provisional registration U/sec80G(5)(vi) of the Act on 4-04-2022. Subsequently the assessee for the purpose of permanent registration has uploaded e-application in Form.no.10AB dated 28-09-2022 and the same was rejected by the CIT(E) as the assessee has not complied with the requisite details. Aggrieved by the order of the CIT(E),the assessee has filed appeal before the Hon’ble Tribunal. 3. At the time of hearing, none appeared on behalf of the assessee, and the assessee has challenged that the that CIT(E) has erred in not considering the details filed in the application for registration and compliance to e-notice issued on the ITBA portal and has not provided reasonable opportunity of hearing and rejected the application. Contra, the Ld. DR supported the order of the CIT(E). 4. We have heard the Ld. DR submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for permanent Page | 3 ITA No.1964/Mum/2023 A.Y.2022-23 Sai Ram Charitable Trust registration under section 80G of the Act, whereas the CIT(E) in course of hearing proceedings has issued e- notice on the assessee through ITBA portal for certain clarifications and additional information to verify the genuineness of the activities of the trust. Since there was no proper response/ compliance to the notice in spite of providing sufficient opportunities to the assessee, the CIT(E) has rejected the application. Therefore considering, the facts, submissions and the principles of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case along with evidences and information. Accordingly, set aside the impugned order and direct the CIT(E) to denovo consider the assessee trust application as per the law and we allow the grounds of appeal of the assessee for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 06.09.2023. Sd/- Sd/- (OM PRAKASH KAN T) (PAVAN KUMAR GADALE) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Mumbai, Dated:06.09.2023 Aniket Rajput, Stenographer Copy of the Order forwarded to : BY ORDER, 1. The Appellant 2. The Respondent. Page | 4 ITA No.1964/Mum/2023 A.Y.2022-23 Sai Ram Charitable Trust 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai