SHRI MAHAVAISHNAV MARUTI SEVA SAMITI, THANE V. CIT (EXEMPTION), Pune

ITA 3096/MUM/2022

AI Insights

The case involves Shri Mahavaishnav Maruti Seva Samiti, a trust registered under various acts, appealing against the order of the Commissioner of Income Tax (Exemptions), Pune, which rejected their application for registration under section 80G(5)(iii) of the Income Tax Act, 1961. The trust argued that the rejection was made without proper application of judicial mind and without providing a reasonable opportunity of being heard. The tribunal found that the assessee was not given adequate opportunity to comply with the information requests made by the CIT, leading to the decision to set aside the impugned order and remand the case for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125802 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 31-01-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 07-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.3096/Mum./2022 (Assessment Year : 2022–23) Shri Mahavaishnav Maruti Seva Samiti C–1, Mayuresh Darshan CHS P&T Colony, Gandhinagar, Dombivli (E) Thane District 421 204 PAN – AACTS5328M ................ Appellant v/s Commissioner of Income Tax (Exemp.) Pune ................Respondent Assessee by : Shri Prakash Marathe Revenue by : Smt. Riddhi Mishra Date of Hearing – 01/02/2022 Date of Order – 03/02/2023 O R D E R PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 31/10/2022 passed under section 12AB r/w section 80G(5)(iii) of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Exemption), Pune (“learned CIT”). 2. In this appeal, the assessee has raised the following ground: “1. Order passed by the Learned Commissioner of Income-Tax, Exemptions, Mumbai U/s 12AB rws 80G(5)(ii) of the act dated 31/10/2022 [DIN: ITBA/EXM/F/EXM45/2022-23/1046531754(1) is Bad in law as the same is passed without (a) application of judicial mind & (b) giving a reasonable opportunity of being heard and also the analogy of the sole base of application of funds has been totally misconstrued and ignoring the fact that the Shri Mahavaishnav Maruti Seva Samiti ITA no.3096/Mum./2022 Page | 2 registration under section 12AB has been granted and hence the previous Order of registration U/S 80G(5)(iv) vide URN: AACTS5328MF20221 dated 08/02/2022 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.” 3. The brief facts of the case are: The assessee trust is registered under Societies Registration Act, 1860, and Bombay Public Trust Act, 1950. The assessee is registered under section 12A(1)(ac)(i) of the Act. The assessee applied in Form 10A for obtaining registration under section 80G(5)(iv), which was approved, and a provisional registration certificate under the aforesaid section in Form 10AC was issued on 08/02/2022. Subsequently, as per the amended provisions of section 12AB r/w section 80G(5)(iii), the assessee uploaded Form 10AB. Vide impugned order, application in Form 10AB was rejected by the learned CIT. 4. From the perusal of the impugned order, we find that the learned CIT in order to verify the genuineness of the activities of the assessee and fulfilment of conditions laid down in section 80G(5) of the Act, issued notice through ITBA portal on 30/08/2022 requesting the assessee to upload certain information/verification. The learned CIT granted another opportunity to the assessee vide notice dated 20/10/2022 to make necessary compliance and furnish the information sought. However, in absence of any submission of the assessee, the learned CIT proceeded to pass the impugned order rejecting the application made by the assessee in Form 10AB. 5. Having heard the submissions of both sides and perused the material available on record, we are of the considered view that in the interest of Shri Mahavaishnav Maruti Seva Samiti ITA no.3096/Mum./2022 Page | 3 natural justice, the assessee should be provided with one more opportunity to present its case before the learned CIT. Accordingly, we set aside the impugned order and direct the learned CIT to de novo consider the application of the assessee trust as per law. As a result, sole ground raised by the assessee is allowed for statistical purposes. 6. In the result, the appeal by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 03/02/2023 Sd/- B.R. BASKARAN ACCOUNTANT MEMBER Sd/- SANDEEP SINGH KARHAIL JUDICIAL MEMBER MUMBAI, DATED: 03/02/2023 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The CIT(A); (4) The CIT, Mumbai City concerned; (5) The DR, ITAT, Mumbai; (6) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Assistant Registrar ITAT, Mumbai