SHREE LAXMI VENKATRAMANA MANDIR TRUST, THANE V. CIT (EXEMPTION), Pune

ITA 3105/MUM/2022

AI Insights

The case involves two appeals by Shree Laxmi Venkataramana Mandir Trust against the orders of the Commissioner of Income Tax (Exemption), Pune, which had rejected the trust's applications for permanent registration under sections 12AB and 80G(5)(iii) of the Income Tax Act, 1961. The trust argued that the CIT(E) had not applied judicial mind and had not provided a reasonable opportunity of being heard, leading to the rejection of their applications. The Tribunal found that the CIT(E) had issued e-notices for clarifications but the trust did not respond, resulting in the rejection. However, the Tribunal emphasized the principles of natural justice and provided an opportunity for the trust to present its case again.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299396 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 06-02-2023
• 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: Principle of natural justice; Set aside
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No. 3105/Mum/2022 (Assessment Year: 2022-23) & ITA No. 3106/Mum/2022 (Assessment Year: 2022-23) Shree Laxmi Venkataramana Mandir Trust, Laxmi Complex, Vartak Nagar, Pokhran Road No.1, Thane (W)-400606. Maharashtra. बनाम/ Vs. CIT (Exemption) Room No. 322, 3 rd Floor, Income Tax Office, PMT Building, Shankar Seth Road, Pune-411037. Maharashtra. लेख सं./ज आइआर सं./PAN/ GI R No. : AAHTS5 490B ( ल /Appellant) .. ( / Respondent) ल र से / Appellant by : Mr.Prakash Marathe.AR र से/Respondent by : Mr.KishorDhule CIT-DR. Ms.Neerja Sharma.DR सुनव ई त र ख / D a t e o f H e a r i n g 07/02/2023 घोषण त र ख /D a t e o f P r o n o u n c e m e n t 14/02/2023 आदेश / O R D E R PER PAVAN KUMAR GADALE - JM: These are the two appeals filed by the assessee against the separate orders of Commissioner of Income Tax (Exemption), Pune [for short ‘CIT(E)’] passed u/sec12AB(1)(b)(ii)(B) of the Act dated 29-09-2022 & U/sec12AB rws 80G(5)(iii) of the Act dated 30-09-2022. - 2 - ITA No. 3105 & 3106/Mum/2022 Shree Laxmi Venkataramana Mandir Trust. 2. Since, the appeals have common and identical issues. For the sake of convenience are clubbed, heard and a consolidated order is passed. In ITA No.3105/Mum/2022 the assessee has raised the following grounds of appeal “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- 23/1046100178(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 aforesaid Original Order passed may please be restored.” In ITA No. 3106/Mum/2022 the assessee has raised the following grounds of appeal: “1. Order passed by the Learned Commissioner of Income-Tax, Exemption, Pune U/s 12AB U/s 80G(5)(iii) dated 30/09/2022[DIN:ITBA/EXM/F/EXM45/2022- 23/1046145010(3)] 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 aforesaid Original Order passed may please be restored.” - 3 - ITA No. 3105 & 3106/Mum/2022 Shree Laxmi Venkataramana Mandir Trust. 3. The brief facts of the case are that the assessee is a Trust registered under Mumbai Public Trust Act, 1950 with Registration No. A-1100 Thane dated 08.08.1999 and undertaking basic religious &charitable activities. The assessee has obtained provisional registration certificate under section 12A (1)(ac)(vi) & U/sec 80G of the Income Tax Act, 1961 dated 31-08-2021. Subsequently, as per the amended, provisions of section 12AB r.w.s 80G(5)(iii) of the Act, The assessee for the purpose of permanent registration uploaded e-application in Form.No10AB dated 31-3-2022 &31-03-2022 and the same was rejected by the CIT(E). Aggrieved by the CIT(E) order, the assessee has filed the appeal before the Honble Tribunal. 4. At the time of hearing, the Ld.AR submitted that CIT(E) has erred in not considering the details filed in compliance to e-notice issued on the ITBA portal and has not provided reasonable opportunity of hearing and rejected the applications. The Ld.AR substantiated the submissions with the factual paper book and prayed for allowing the appeal. Contra, the Ld.DR supported the order of the CIT(E). 5. We have heard the rival submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for permanent registration under section 12AA and 80G of the Act, whereas the - 4 - ITA No. 3105 & 3106/Mum/2022 Shree Laxmi Venkataramana Mandir Trust. CIT(E) in course of hearing proceedings has issued e- notices on the asssessee through ITBA portal for certain clarifications and additional information to verify the genuineness of the activities of the trust. Since there was no response to the notices in spite of providing sufficient opportunities to the asssessee, the CIT(E) has rejected the applications. Therefore considering, the facts, submissions and the principles of natural justice shall provide 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 applications as per the law and we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 14.02.2023. Sd/- Sd/- Sd/- (B.R. BASKARAN) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 14/02/2022 SK, Sr. PS /Copy of the Order forwarded to : 1. / The Appellant 2. / The Respondent. 3. " #$ % / The CIT(A) - 5 - ITA No. 3105 & 3106/Mum/2022 Shree Laxmi Venkataramana Mandir Trust. 4. %( ) / Concerned CIT 5. # & ' # # #$, #$ ण, हमद " द / DR, ITAT, Mumbai 6. ' *+ , / Guard file. आदेशानुसार/ BY ORDER, # # //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Mumbai