JAMIA MASJID,MANDYA V. COMMISSIONER OF INCOME TAX, EXEMPTIONS, BANGALORE

ITA 1093/BANG/2025

AI Insights

The case involves the Jamia Masjid Institution, a notified Waqf Institution, which appealed against the order of the Commissioner of Income Tax (Exemptions) rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The primary contention was that the CIT(E) passed the order without adequately considering the appellant's submissions, not calling for further information, and not providing an opportunity of hearing, thus violating the principles of natural justice. The CIT(E) had rejected the application on grounds that the appellant was not created through a registered trust deed nor was it an establishment under enactment, and it lacked several mandatory clauses in its bye-laws as required by the Income Tax Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714663 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANAND H. KALAKERI
• Assessee Lawyers: MOHAMMAD TAHER SHAIKH
• Keywords: Set aside; Principle of natural justice

Judgement Text

"ITA No.1093/Bang/2025 Jamia Masjid IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No.1093/Bang/2025 Assessment Year : ----- Jamia Masjid Institution Established under the WAFQ Act Jamia Shadi Mahal Complex Maddur, Mandya District – 571428 Karnataka PAN : AACAJ6646G Vs. Commissioner of Income Tax (Exemptions) Unity Building Annex Mission Road, Bangalore – 560027 Karnataka APPELLANT RESPONDENT Appellant by : Sri Mohammad Taher Shaikh, FCA Respondent by : Sri Shivanand H. Kalakeri – CIT Date of Hearing : 24.07.2025 Date of Pronouncement : 08.08.2025 O R D E R PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER: 1. This appeal is filed by the assessee against order passed by Ld.Commissioner of Income Tax (Exemptions), Bangalore (hereinafter in short “Ld.CIT(E)”) dated 18.03.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1074635699(1), on the following grounds of appeal: - “1. General Ground 1.1. The order passed by the learned Commissioner of Income Tax, Exemptions [\"CIT(E) for short hereinafter\"] is bad in law and liable to be quashed/ set aside. Printed from counselvise.com ITA No.1093/Bang/2025 Jamia Masjid Page 2 of 6 2. Order passed without considering the submissions made by the appellant, not calling for further information and without providing an opportunity of hearing 2.1 The learned CIT(E) has erred in passing the order dated 180.03.2025 without considering the submissions made by the appellant on 27-01-2025. The order so passed without considering the submissions of the appellant is bad in law and liable to be quashed/ set aside. 2.2 The learned CIT(E) erred in passing the order without calling for further information/ documents as required u/s.12AB of the Income-tax Act, 1961, (\"the Act\"). On the contrary, the learned CIT(E) arrived at conclusions on the basis of own judgment and without examination of the records/ documents. 2.3 The learned CITE) erred in passing the order without providing any opportunity of hearing and thereby violating the principles of natural justice. 3. Submission of necessary documents/ details as required for registration u/s.12AB of the Act 3.1. The learned CIT(E) has erred in rejecting the application for registration u/s. 12AB of the Act, on the grounds that the Appellant has not been created through a registered trust deed nor it is an establishment under enactment. 3.2. The learned CIT(E) erred in not appreciating that: (a) The Appellant is a notified Waqf Institution vide Gazette Notification No: MWB 19(7) 64, dated: 31-10-1964 at S1. No.13, and operates under the Scheme of Administration approved by the Karnataka State Board of Augaf (\"the Board\", vide order No.: KSBA/ BLS/ 50/ MYA/ 2016-17 dated 02-02-2017 (\"the Scheme\"); (b) The Appellant has submitted the information called for viz; \"Note on activities\" and the Provisional Financial Statements for the period up to 31-12-2024.; and (c) The Appellant has submitted the copy of the Scheme which cannot be altered/ amended to include the restrictive clauses without the approval of the Board. 3.3. On facts and circumstances of the case and law applicable, the order so passed without considering the submissions of the appellant is bad in law and liable to be quashed/ set aside. 4. Prayer 4.1 In view of the above and other grounds to be adduced at the time of hearing, the appellant prays that the order passed by the learned CIT (E) be quashed/ set aside.” Printed from counselvise.com ITA No.1093/Bang/2025 Jamia Masjid Page 3 of 6 2. Briefly stated facts of the assessee are that, assessee is a notified Waqf Institution vide Gazette Notification No: MWB 19(7) 64, dated 31.10.1964 at S1. No.13, and operates under the Scheme of Administration approved by the Karnataka State Board of Augaf (\"the Board\"), vide order No.KSBA/ BLS/ 50/ MYA/ 2016-17 dated 02-02-2017 (\"the Scheme\"). Assessee applied for Registration in Form 10AB dated 23.09.2024 of the Income tax Act, 1961 (in short “the Act”). The case was assigned to the Jurisdictional Assessing Officer for verification. The JAO issued letters/notices through official mail/post calling for the details/documents. On perusal of the information submitted by the assessee, both Range Head and Jurisdictional Assessing Officer did not recommend for registration and reasons mentioned in the report are extracted in the order of the Ld.CIT(E). The Jurisdictional Assessing Officer and Range Head observed that the assessee is not registered under the Society Act of State and as per the Bye Law dated 31.10.1964 was not containing mandatory clauses i.e. 1.Utilisation Clause, 2.Irrevocable Clause, 3.Dissolution Clause, 4.Investment Clause, 5.Amendment Clause, 6.Beneficiary Clause & 7.Accounts Clause as per Income Tax Act., 1961. In this regard assessee was given opportunity on 16/12/2024, 03/01/2025 & 16/01/2025 requesting assessee to submit the amended trust deed by incorporating the mandatory clauses on or before 20/01/2025. But there was no response from the assessee side. Printed from counselvise.com ITA No.1093/Bang/2025 Jamia Masjid Page 4 of 6 Jurisdictional Assessing Officer and Range Head did not recommend for registration. Accordingly, the Ld.CIT(E) cancelled the registration application. 3. Aggrieved by the above order, assessee filed an appeal before this Tribunal. 4. Ld. Counsel for the assessee submitted that the Ld.CIT(E) has not given opportunity before cancelling the application which is in violation of principles of natural justice and submitted that if one more chance is given to the assessee, assessee will be able to demonstrate the same and assessee is notified on 31.10.1964 as per the Scheme of Administration approved by the Karnataka State Board of Augaf, which is also eligible for Registration under section 12AB of the Act. 5. On the other hand, Ld. Departmental Representative (in short “Ld.DR”) relied on the order of the Ld.CIT(E) and submitted that the mandatory clauses which are required to incorporate in the bye laws of the assessee are not found, therefore, the mandatory clauses are not on the bye laws of the assessee and the lower authorities gave opportunities to the assessee to substantiate but the assessee did not file anything. 6. Considering the rival submissions, we note that the assessee was notified on 31.10.1964 as per the Scheme of Administration approved by the Karnataka Printed from counselvise.com ITA No.1093/Bang/2025 Jamia Masjid Page 5 of 6 State Board of Augaf (“the Board”) vide Registration Noted supra and the Range Head did not found the mandatory clause and notices was given to the assessee. We noted that before cancelling and after receipt of report from the Jurisdictional Assessing Officer and Range Head, the Ld.CIT(E) has not given opportunity to the assessee. The assessee has filed paper book containing page no. 1 to 129, we also observed that before us the Ld. Counsel for the assessee has not removed the observation pointed out by the Jurisdictional Assessing Officer and Range Head. Therefore considering the facts of the case and in the interest of justice, we remit this issue back to the file of Ld.CIT(E) for fresh consideration and decide the issue as per law and assessee is directed to produce the necessary / mandatory observations observed by the Jurisdictional Assessing office and Range Head and remove the objections raise by him and not to seek unnecessary adjournments for early disposal of the case. In case of failure, no second lenience shall be granted to the assessee. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 08th August, 2025. Sd/- (KESHAV DUBEY) JUDICIAL MEMBER Sd/- (LAXMI PRASAD SAHU) ACCOUNTANT MEMBER Bangalore, Dated: 08th August, 2025. Giridhar/Sr.PS Printed from counselvise.com ITA No.1093/Bang/2025 Jamia Masjid Page 6 of 6 Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. Printed from counselvise.com "