DOMBIVALI MEDICAL FOUNDATION OF IMA, THANE V. CIT (EXEPMPTION), PUNE

ITA 3094/MUM/2022

AI Insights

The case involves the Dombivli Medical Foundation of IMA, which appealed against the decision of the Commissioner of Income Tax (Exemption) who had rejected their application for permanent registration under section 12AB read with section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was based on the grounds that the foundation failed to provide adequate evidence of its activities as required by the CIT(E). The Tribunal found that the CIT(E) had not adequately considered the submissions made by the foundation and thus remanded the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125790 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-03-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 07-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUDHIR HUNNARGIKAR; MADHAV M. KHISTI
• Section: 80G; 201; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI B. R. BASKARAN, AM AND MS. KAVITHA RAJAGOPAL, JM I TA N o. 309 4/ M u m / 20 22 ( A s s e ss me nt Y ea r: 20 2 2- 23 ) Dombivli Medical Foundation of IMA IMA Hall, 2 nd Floor, Deep Shikha CHS, OPp. CKP Hall, Dombivali (E), Thane-421 201 V s. CIT(Exemption) Room No. 322, 3 rd Floor, ITO, PMT Building, Shankar Seth Road, Pune, -411 037 P A N / G I R N o. AA A T D 5 06 1 G (Appellant) : (Respondent) Assessee by : Shri Sudhir Hunnargikar & Shri Madhav M. Khisti Revenue by : Smt. Riddhi Mishra D a te o f H e a r i n g : 23.03.2023 D ate of P ro n ou n ce me n t : 21.06.2023 O R D E R Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Exemption) (‘ld.CIT(E) for short) passed u/s.12AB r.w.s. 80G(5)(iii) of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2022-23, rejecting the application filed by the assessee in Form 10AB for the reason that the assessee has failed to submit the ‘note on activities’ of the trust. 2. The brief facts are that the assessee trust is registered under the Mumbai Public Trust Act, 1950 vide Registration No. E/2894/Thane dated 04.12.2002. The assessee is engaged in the activities of imparting medical and health education and facilitating training for doctors, paramedical staff (Nurses, Compounder, laboratory technicians, ward boys etc.) mainly at Dombivli or other places and is also running medical 2 ITA No. 3 0 9 4 / M u m / 2 0 2 2 ( A . Y . 2 0 2 2 - 2 3 ) Dombivli Medical Foundation of IMA vs. CIT(Exemption) educational institutions and providing medical services to the people at large at economical rates and also when required free of cost. The assessee is also carrying out other allied activities relating to medical services along with health awareness activities. It is observed that the assessee had applied for Registration u/s. 80G of the Act dated 02.08.2021 in Form 10A which was approved and provisional registration certificate was issued on 23.09.2021 for a period commencing from 23.09.2021 to A.Y. 2024-25. The assessee had then applied for permanent registration as per the amended provision of section 12AB r.w.s. 80G(5)(iii) of the Act in Form 10AB dated 01.04.2022. The assessee has received notice through ITBA portal seeking certain clarifications/information which according to the assessee was complied with but it is observed that the ld. CIT(E) has rejected the application filed by the assessee on the ground that the assessee has failed to furnish the evidences pertaining to the activities claimed to have been carried out by the assessee. The ld. CIT(E) held that the assessee has failed to prove the genuineness of activities of the assessee and has thereby not fulfilled the conditions laid down in section 80G(5)(i) to (v) of the Act. 3. Aggrieved, the assessee is in appeal before us challenging the impugned order. 4. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee trust was established for carrying out the activities of public charitable nature relating to medical services. It is also observed that the ld. CIT(E) has rejected the assessee’s application for the reason that the assessee has not furnished the details pertaining to its activities which according to the ld. CIT(E) was very general in nature as per the ‘Note on Activities’ submitted by the assessee. The ld. 3 ITA No. 3 0 9 4 / M u m / 2 0 2 2 ( A . Y . 2 0 2 2 - 2 3 ) Dombivli Medical Foundation of IMA vs. CIT(Exemption) CIT(E) further held that the assessee has failed to substantiate its claim by credible evidences. In our considered opinion, we deem it fit to remand this issue back to the file of the ld. CIT(E) for the purpose of furnishing sufficient details to the satisfaction of the ld. CIT(E) to provide the assessee with one more opportunity. Hence, we direct the ld. CIT(E) to consider the assessee’s submission afresh in accordance with the law. Therefore, this issue is remanded back to the file of the ld. CIT(E). 5. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 21.06.2023 Sd/- Sd/- (B. R. Baskaran) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 21.06.2023 Roshani , Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai