MANTRA YOG GAU SEVA TRUST ,MUMBAI V. CIT EXEMPTIONS, MUMBAI

ITA 6046/MUM/2024

AI Insights

The case involves Mantra Yog Gau Seva Trust, a charitable trust, which appealed against the decisions of the Commissioner of Income Tax (Exemptions), Mumbai, rejecting their applications for registration under sections 12AB and 80G of the Income Tax Act, 1961. The primary reason for the rejection was the alleged non-compliance with document submission requirements as stipulated under Rule 17A. The trust argued that they had faced unavoidable circumstances that prevented complete compliance, but assured the tribunal of their willingness to comply fully if given another opportunity. The Departmental Representative suggested that if the trust could comply with the requirements, the matter could be re-examined by the competent authority.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25601 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANYOGITA NAGPAL
• Assessee Lawyers: ASHOK MEHTA
• Keywords: Set aside; Opportunity of being heard; Competent authority; Charitable institution
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VP AND SHRI GIRISH AGRAWAL, AM ITA Nos. 6046 & 6047/Mum/2024 (Assessment Year: 2025-26) Mantra Yog Gau Seva Trust, Flat No. 2 & 3, Shyamkripa, 1114-Devidayal Road, Mulund West, -400080 Vs. CIT Exemption 601, 6th Floor, Cumbulla Hill MTNL Building, Peddar Road, Mumbai-400 002 PAN/GIR No. AAHTM 8938L (Appellant) : (Respondent) Appellant by : Shri Ashok Mehta Respondent by : Smt. Sanyogita Nagpal Date of Hearing : 14.01.2025 Date of Pronouncement : 21.01.2025 O R D E R Per Saktijit Dey, VP: The captioned appeals have been filed by the assessee, challenging the orders passed by learned Commissioner of Income Tax (Exemptions), Mumbai, (‘ld.CIT(E)’ for short), rejecting applications seeking registration u/s. 12A and section 80G of the Income Tax Act, 1961 (‘the Act’ for short). 2. We have heard Shri Ashok Mehta, learned counsel appearing for the assessee and Smt. Sanyogita Nagpal, learned Departmental Representative ('ld. DR' for short). 3. Briefly, the facts are, the assessee is stated to be a Charitable Trust, filed applications before the competent authority seeking registration u/s. 12AB of the Act as well as u/s. 80G of the Act. While verifying assessee’s application for registration u/s. 12AB of the Act, ld. CIT(E) found that in terms with Rule 17A, certain documents were required to be filed along with the application for registration. Finding some deficiencies in complying to 2 ITA Nos. 6046 & 6047/Mum/2024 (A.Y.2025-26) Mantra Yog Gau Sewa Trust vs. CIT(E) the said provision, ld. CIT(E) called upon the assessee to remove the deficiencies. Additionally, he called for further documents/clarifications from the assessee. Alleging that the assessee did not comply with the queries raised in the subsequent show cause notices, ld. CIT(E) rejected assessee’s application seeking registration u/s. 12A of the Act. As a natural corollary, application seeking approval u/s. 80G of the Act was also rejected. 4. Before us, it is the say of the assessee that though past compliance was made, however, complete compliance could not be made because of unavoidable circumstances. Further, ld. Counsel assured that given an opportunity, assessee will comply with all the queries raised by ld. CIT(E). 5. The ld. DR submitted, in case the assessee is in a position to comply with the queries raised by the competent authority, the matter may be re-examined by him. 6. Having considered rival submissions, we find, the only reason based on which assessee’s applications seeking registration u/s. 12AB and approval u/s. 80G of the Act have been rejected is on account of non-furnishing of certain documents/clarifications sought from the assessee. However, before us, ld. Counsel appearing for the assessee has given an assurance that given an opportunity, all the queries raised by the competent authority would be complied with. 7. Considering the above, we are inclined to set aside the impugned orders of the ld. CIT(E) and restore the matters back to him for reconsideration of applications filed, seeking registration u/s. 12AB and approval u/s.80G of the Act on their own merits. Before taking decision on these applications, the assessee may be provided due and reasonable 3 ITA Nos. 6046 & 6047/Mum/2024 (A.Y.2025-26) Mantra Yog Gau Sewa Trust vs. CIT(E) opportunity of being heard. With the afore-said observations, the matters are restored back to ld. CIT(E). 8. In the result, the appeals are allowed for statistical purposes. Order pronounced in the open court on 21 / 01/2025 Sd/- Sd/- (Girish Agrawal) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 21/01.2025 Aks/- 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 "