MAROL BAITULMAL WELFARRE CENTRE, MUMBAI V. CIT (E), MUMBAI

ITA 5932/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9205 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2019-2020
• Appeal Filed On: 17-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINAY SINHA LD
• Assessee Lawyers: TANZIL PADVEKAR LD
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUM AR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 5932 /M UM/ 2019 ( / ASSESSMENT YEAR: 2019 - 20 ) M AROL BAITULMAL WELFARE CENTRE SAIBABA NAGAR, NEAR BORI COLONY MAROL PIPELINE, ANDHERI(EAST), MUMBAI - 400 059 / VS. CIT(EXEMP TION ) 6 TH FLOOR, PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI - 400 012 ./ ./ PAN/GIR NO. A AATM - 7748 - M ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI TANZIL PADVEKAR , LD. AR REVENUE BY : SHRI VINAY SINHA, LD. CIT - DR / DATE OF HEARING : 10 /08 /2021 / DATE OF PRONOUNCEMENT : 10/08/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. IN THIS APPEAL THE ASSESSEE IS AGGRIEVED BY REJECTION OF REGISTRATION APPLICATION FILED U/S 12AA BEFORE LEARNED COM MISSIONER OF INCOME - TAX (EXEMP TION ) , MUMBAI [CIT(E )] VIDE IMPUGNED ORDER DATED 30 /08 /20 19 . 2. THE LD. AR ASSAILED THE REJECTION, INTER - ALIA, ON THE GROUND THAT THE ASSESSEES ACTIVITIES WERE CHARITABLE IN NATU RE AND LD. CIT(E) ERRED IN TREATING THE APPLICATION AS INFRUCTUOUS IN VIEW OF THE FACT THAT EARLIER 2 APPLICATION FILED IN THE YEAR 2012 WAS REJECTED. THE LD. CIT - DR SUBMITTED THAT THE ASSESSEE DID NOT CARRY OUT ANY OF THE MAIN OBJECTS. 3. UPON PERUSAL OF IM PUGNED ORDER, WE FIND THAT THE ASSESSEE FILED REGISTRATION APPLICATION U/S 12AA IN FORM NO.10A ON 18/02/2019. HOWEVER, THE ASSESSEE FAILED TO SPECIFY THAT SIMILAR APPLICATION FILED IN THE YEAR 2012 WAS REJECTED. CONSEQUENTLY, LD. CIT(E), IN PARA 3.4, CONCL UDED THAT THE APPLICATION WAS INFRUCTUOUS AND HENCE, REJECTED. 4. THE LD. CIT(E) ALSO PROCEEDED TO EXAMINE THE ACTIVITIES OF THE ASSESSEE TRUST VIS - - VIS ITS MAIN OBJECTS AND FOUND THAT 90% OF THE RECEIPTS WERE FROM MEDICAL AND RELATED ACTIVITIES. HOWEVER, RUNNING DISPENSARY WAS NOT PART OF ASSESSEES MAIN OBJECTS. THE ACTUAL ACTIVITIES COULD NOT BE LINKED WITH ANY OF THE MAIN OBJECTS AND THEREFORE, THE APPLICATION WAS TO BE REJECTED. 5. AFTER DUE CONSIDERATION OF MATERIAL ON RECORD, WE ARE OF THE OPINION T HAT MERELY BECAUSE THE APPLICATION WAS REJECTED IN THE YEAR 2012, THE AFORESAID FACT ALONE SHOULD NOT HAVE BEEN THE BASIS OF REJECTION OF APPLICATION. THE LD. AR HAS SUBMITTED THAT THE ACTIVITIES OF THE ASSESSEE TRUST ARE IN ACCORDANCE WITH ITS MAIN OBJECT S AND THEREFORE, THE REGISTRATION OUGHT TO HAVE BEEN GRANTED. CONSIDERING THE SAID PLEA, THE BENCH DEEMS IT FIT TO RESTORE THE MATTER OF REGISTRATION BACK TO THE FILE OF LD. CIT(E) FOR RE - ADJUDICATION AFTER CONSIDERING THE ACTIVITIES VIS - - VIS MAIN OBJECTS OF THE ASSESSEE TRUST. NEEDLESS TO ADD THAT ADEQUATE OPPORTUNITY OF HEARING SHALL BE GRANTED TO THE ASSESSEE, WHO, IN TURN, IS DIRECTED TO SUBSTANTIATE THE REGISTRATION APPLICATION. THE MERE FACT THAT EARLIER APPLICATION WAS REJECTED IN 2012, SHALL BE IGN ORED. 3 6. THE APPEAL STAND ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 10 TH AUGUST , 2021. SD/ - SD/ - (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 10 /08 /2021 SR.PS, DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.