BHIKSHU MAHASHRAMAN FOUNDATION, THANE V. CIT(EXE), MUM

ITA 3181/MUM/2022

AI Insights

The case involves Bhishu Mahashraman Foundation appealing against the order of the Commissioner of Income-tax (Exemptions), which rejected their applications for registration under sections 12AB, 10(23C), and 80G of the Income-tax Act, 1961. The appeals were initially filed with a delay of 22 days, which the tribunal condoned based on the assessee's affidavit explaining the delay due to unavoidable personal reasons. The tribunal found that the CIT(E) had passed the order on a Sunday, and the assessee had submitted the required information a day later, which constituted a procedural lapse rather than a substantive one. Consequently, the tribunal remitted the matter back to the CIT(E) for a fresh consideration on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 112882 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-03-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 15-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Procedural lapse
• Section: 80G; 12A; 22; 10(23C)

Judgement Text

1 ITAs 3181 & 3182/Mum/2022 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE SHRI AMIT SHUKLA (JUDICIAL MEMBER) AND SHRI S.RIFAUR RAHMAN (ACCOUNTANT MEMBER) I.T.A No.3181& 3182/Mum/2022 (Assessment year : 2022-23) BhishuMahashraman Foundation 301, The Ambience Court, Sector 19D, Plot No.2, Vashi, Thane PAN : AAHAB2421N vs Commissioner of Income-tax (Exempions), Mumbai, Room No.601, 6 th Floor, Cumballa Hill, MTNL, TE Building, Pedder Road, DrGopalraoDeshmukh Marg, Cumballa Hill, Mumbai-400 026 APPELLANT RESPONDENT Assessee represented by Shri Devendra Jain, Adv Department represented by Dr. Mahesh Akhade, CIT DR Date of hearing 06/03/2023 Date of pronouncement 27/03/2023 O R D E R Per: S.Rifaur Rahman (AM): These appeals have been filed by the assessee against the order dated 25/09/2022 passed by the Commissioner of Income-tax (Exemptions), Mumbai [hereinafter ‘CIT(E)] for the assessment year 2022-23. 2 ITAs 3181 & 3182/Mum/2022 2. These appeals were filed by the assessee with a delay of 22 days and assessee filed an affidavit in this regard and submitted that the Ld.CIT(E) has rejected the application for registration under section 12AB and under section 10(23C) of the Income-tax Act, 1961 and also another application filed by the assessee for registration under section 80Gon 25/09/2022 and assessee had to file these appeals within 60 days from the date of receipt of this order, i.e. on 24/11/2022. However, assessee filed these appeals with the delay of 22 days. Since assessee has submitted that due to unavoidable personable reasons, he had to travel out of the town, therefore, there is delay in filing these appeals. 3. After considering the affidavit, we are inclined to condone the delay in filing both the appeals. 4. The relevant facts are, the assessee has filed the applications for registration under section 12AB and under section 80G on 31/03/2020 and the Ld.AR brought to our notice page 1 of the paper book wherein show cause notice dated 21/09/2022 were issued to the assessee and assessee has filed the relevant information on 26/09/2022 as detailed below: 1. Application in form 10AB 2. Pancard on BhikhsuMahashraman Foundation 3. Self Certified Copy of Registration Certificate of Trust under Bombay Public Trust Act, 1950 4. Self Certified Copy of Registration Certificate of Trust under Society Registration Act, 1860 5. Self certified copy of Trust Deed 6. List of Trustees 3 ITAs 3181 & 3182/Mum/2022 7. Pancard of Trustee 8. Provisional Registration Certificate u/s 12A in form 10AC 5. It is brought to our notice by the Ld.AR that the impugned order passed by Ld.CIT(E) dated 25/09/2022 which is on Sunday. He submitted that the relevant order was passed on the holiday with the observation that the assessee has not filed the relevant information as per relevant Rule 17A and as per Rule assessee is supposed to file all the relevant information alongwith the application. He submitted that the assessee has filed the same alongwith the application as well as assessee has filed on the next day i.e. 26/09/2020 the relevant information.Accordinglyhe prayed that the issue may be remitted back to the Ld.CIT(E) to consider the same on merit. 6. On the other hand, the Ld.DR reiterated that all the details relevant for seeking registration has to be filed alongwith application as per law. He brought to our notice the findings of the Ld.CIT(E) in para 4 of the order and at the same time, he also of the opinion that this issue may be remitted back to the file of Ld.CIT(E). 7. Considered the rival submissions and perused the materials on record. We observe that as per rule assessee has to file the relevant information alongwith the application and even there is failure on the part of the assessee. In our view, it is only a procedural lapse for the assessee to file the same at the time of hearing. Therefore, it is only a procedural lapse.In this case assessee has filed the relevant information on 26/09/2020 and Ld.CIT(E) has passed the order one day prior to the submission of the details by the assessee. Therefore, the authorities 4 ITAs 3181 & 3182/Mum/2022 should give proper opportunities for processing the application for registration not in a hurry to complete the proceedings. Accordingly, we direct the Ld CIT(E) to consider the various submissions of the assessee for registration both under section 12AB as wellas under section 10(23C) and also under section 80G of the Act after giving proper opportunity of being heard to the assessee.Accordingly appeals filed by the assessee are allowed for statistical purpose. 8. In the result, appeals filed by the assessee are allowed. Order pronounced in the open court on 27 th March, 2023. Sd/- sd/- (AMIT SHUKLA) (S.RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dt : 27 March, 2023 Pavanan ितिलिपअ ेिषतCopy of the Order forwarded to : 1. अपीलाथ /The Appellant , 2. ितवादी / The Respondent. 3. आयकरआयु (अ)/The CIT(A)- 4. CIT 5. , आ .अप .अ ., मुबंई/DR, ITAT, Mumbai 6. /Guard file. BY ORDER, //True Copy// (Dy./Asstt.Registrar) ITAT, Mumbai