JAMIAT ULMA-I-HIND (ARSHAD MADANI) PUBLIC TRUST,. V. CIT(E), DELHI, .

ITA 5133/DEL/2024

AI Insights

The case involves Jamiat Ulma-I-Hind (Arshad Madani) Public Trust, which appealed against the decision of the CIT(Exemption), Delhi, rejecting their application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The CIT(Exemption) had dismissed the application due to non-compliance with document submission requests and questioned the genuineness of the trust's activities. The Tribunal found that the assessee was not given sufficient opportunity to present their case, thus violating the principles of natural justice, and allowed the appeal for statistical purposes, remanding the case for further examination of the submitted documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471943 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2024-2025
• Other Referred Cases: Radha Madhav nishkam Seva Samiti Vs. Commissioner of Income-tax (Exemption), GIIR Communications India (P) Ltd. vs. Deputy Commissioner of Income-tax, Yum ! Restaurants Marketing (P) Ltd. vs. Income Tax Officer, Ward- 18 (4) New Delhi
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: DISHANT SETHI
• Keywords: Opportunity of being heard; Additional evidence; Principle of natural justice
• Section: 12A; 80G

Judgement Text

"1 THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH C: DELHI BEFORESHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA No.5133/Del/2024 Assessment Year: 2024-25 Jamiat Ulma-I-Hind (Arshad Madani) Public Trust 242 Bahadur Shah Zafar Marg Opp link House New Delhi 110002 Vs. CIT(Exemption) Delhi PAN No. AABTJ7482J (Appellant) (Respondent) ORDER PERSUDHIR KUMAR, JM: The assesseepreferred the captioned appeal, challenging the order dated 11.09.2024 passed by the Ld. CIT(Exemption) (in short Assesseeby Shri Dishant Sethi, Advocate Sh. Shyam Sunder, Advocate Sh. Jagvir Singh, Advocate Department by Sh.Dayainder Singh Sidhu CIT DR Date of hearing 25.02.2025 Date of pronouncement 12.03.2025 2 “Ld. CIT (Exemption”) Delhi pertaining to Assessment year 2024- 2025. 2. The assessee has raised the following ground of appeal: 1. That the Ld. CIT(Exemption), Delhi has grossly erred in law as well as on facts in rejecting the claim of approval u/s 30G(5) of the Income Tax Act, 1961 and passing an impugned order under clause (ii) (b) (B) of second proviso to section 80G(5) of the Act. 2. That the Ld. CIT(Exemption), Delhi has grossly erred in law as well as on facts in ignoring facts and circumstances of the case and rejecting the application for approval u/s 80G(5) of the Act on frivolous and unreasonable grounds. 3. That the order passed by the Ld. CIT(Exemption), Delhi is bad in law and required to be quashed as no reasonable and sufficient opportunity of being heard was provided to assessee during the course of proceeding and thereby violating the Principles of Natural Justice. 3. The brief facts of the case are thatthe assessee trust {Jamiat Ulma-I- Hind (Arshad Madani)} registered on 12-03-2013 under the Indian trust Act1882 with sub – Registrar -III New Delhi applied on 13-03-2024 in Form No. 10AB for registration under section 3 12A(1)(ac)(iii) of the Income Tax Act, 1961(here in referred “the Act”). The assessee was issued a questionnaire on 16-04-2024 with request to furnish certain details and documents in support of its claim for registration by 01-05-2024. In the response of the notice assessee made the part compliance vide letter dated 13-08-2024 and filed some details and documents and requested for more timeto file the documents. The assessee did not file the requisite documents in the extended time. The Ld. CIT(exemption) considering the documents submitted by the assessee dismissed the application of the assessee. Ld. CIT(Exemption) has observed in his order as under: 6. In reply to column No. 6 of Form 10A and 10AB, the applicant has replied in affirmative with regard to its trust deed having 'irrevocable' clause. However, it may be mentioned that the trust deed does not contain such clause, thus the case of applicant is hit by provision/conditions as mentioned in column No. 9 and 10 of Form 10AC, which are reproduced as under :- 4 “………….This order is liable to be withdrawn by the prescribed authority if it is subsequently found that the activities of the applicant are not genuine or if they are not carried out in accordance with all or any of the conditions subject to which it is granted, if it is found that the applicant has obtained the registration by fraud or misrepresentation of facts or it is found that the assessee has violated any condition prescribed in the Income Tax Act....\" 7. In view of the above facts, the genuineness of the activities of the applicant trust could not be established. Therefore, the conditions for registration u/s 12A are not satisfied hence the application filed on 31.03.2024 in Form 10AB for grant of registration u/s 12A(1)(ac) (iii) is rejected and provisional registration issued on 16.02.2024 vide URN AACTG4000GE20214 for A.Y. 2022-23 to Α.Υ. 2024-25 is also hereby cancelled. 4. Aggrieved the order of the Ld. CIT(Exemption) the assessee has filed this appeal. 5 5. The Ld. Counsel for assessee has submitted that trust was registered vide registered trust deed dated 12-03-2013. The trust is engaged in the social and charitable activities related to assistance to large number of orphans, widows, poor persons. The trust also provided the assistance and scholarship to students and aid for medical facilities to the poor persons. The trust was earlier granted registration u/s 12 A and the 80G of the Act and subsequently provisional registration u/s 12A was also granted on 07-10-2022 for the A.Y. 2023-24 to 2025-26. Ld. counsel for assessee has submitted that he sought the time to file the documents but without giving the sufficient opportunity of being heard the Ld. CIT(A) dismissed the application of the assessee. The Ld. Counsel for assessee has moved an application to file the additional evidence under rule 29 of the Act. Reliance has placed on the following decisions: 1. Radha Madhav nishkam Seva Samiti Vs. Commissioner of Income-tax (Exemption) [2024] 158 taxmann.com 598 (Delhi-Trib.) [17-01-2024] 6 2. GIIR Communications India (P) Ltd. vs. Deputy Commissioner of Income-tax [2024] 162 taxmann.com 598 (Delhi-Trib.) [09-05-2024] 3. Yum ! Restaurants Marketing (P) Ltd. vs. Income Tax Officer, Ward- 18 (4) New Delhi [019] 109 taxmann.com 130 (Delhi-Trib.) [09-09-2024] 6. The Learned Authorized Representative for Department of Revenue supported the impugned order of the Departmental Authority. 7. We have heard the parties and gone through the material available on record. 8. The Ld. Counsel for assessee has submitted that relevant documents could not be filed during the course of proceedings. regarding the trust before the Ld. CIT(Exemption). In the interest of justice and fair play the application of the assessee to file the additional evidence under Rules -29 of Income Tax Appellate tribunal Rules, 1963 is allowed. The documents filed by the assessee is to be verified by the Ld. CIT (E ). In the interest of justice and fair play,we deem it fit to remand the matter to the file of the Ld. CIT(Exemption) with direction to consider 7 the documents produced by the assessee and passed the order accordance to law. The appeal of the assessee is liable to be allowed. 9. In the result, the appeal of the assessee allowed for statistical purposes. Order pronounced in the open court on 12/03/2025. Sd/- Sd/- (SHAMIM YAHYA) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIALMEMBER Dated: 12 March,2025 “Neha, Sr. PS” "