MEGHDOOT FOUNDATION,MUMBAI V. CIT(EXEMPTIONS)MUMBAI, MUMBAI

ITA 5877/MUM/2024

AI Insights

The case involves Meghdoot Foundation, a charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions) who had rejected their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was primarily due to the assessee's failure to respond adequately to a second notice requesting additional documents. The Tribunal found that the assessee had initially complied with the first notice but failed to respond to the second within the short time frame provided. Considering the principles of natural justice, the Tribunal decided to provide the assessee another opportunity to present their case and complete the documentation process.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32182 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANYOGITA NAGPAL
• Assessee Lawyers: BHUPENDRA SHAH
• Keywords: Set aside; Principle of natural justice; Charitable institution

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “D” BENCH : MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 5877/Mum/2024 Assessment Year :2024-25 Meghdoot Foundation, 2, Jekunwar Niwas, Jivdaya Lane, Ghatkopar West, Mumbai PAN : AABTM0904G vs. The CIT (Exemptions) 6th Floor, Cumballa Hill, MTNL TE Building, Pedder Road, Mumbai (Appellant) (Respondent) Assessee by : Shri Bhupendra Shah Revenue by : Smt. Sanyogita Nagpal, CIT-DR Date of Hearing : 02-01-2025 Date of Pronouncement : 02-01-2025 ORDER PER B.R. BASKARAN, A.M : The assessee has filed this appeal challenging the order dt.21-09-2024 passed by the Ld.Commissioner of Income Tax (Exemptions)-Mumbai [„Ld.CIT(E)‟], rejecting the application filed by the assessee, seeking registration u/s.12AB of the Income Tax Act, 1961 („the Act‟). 2 ITA No. 5877/Mum/2024 2. The Learned counsel for the assessee submitted that the assessee is a charitable trust and it filed application in Form-10AB, seeking registration u/s.12AB of the Act. The Ld.CIT(E) took the view that the assessee has not furnished complete set of documents as mentioned in Rule 17A(2) of the Income Tax Rules, 1962 („the Rules‟). Accordingly, Ld.CIT(E) asked the assessee to furnish certain documents and the assessee also furnished the them. Subsequently, Ld.CIT(E) issued another notice dt.07-09-2024 calling for certain more details, but the assessee did not respond to the same within the time allowed. Hence, Ld.CIT(E) rejected the application filed by the assessee. Hence the assessee has filed this appeal. 3. The Ld.AR submitted that the assessee was in the process of preparing a reply and the same could not be furnished within the short time of one week allowed by the Ld.CIT(E). Accordingly, he prayed that the assessee may be provided with an opportunity to present the details before the Ld.CIT(E). 4. We have heard the Ld.DR and perused the record. We notice that the assessee has complied with the first notice issued by the Ld.CIT(E), but could not comply with the second notice. It is stated that the details were under preparation and could not be filed within the short time allowed by the Ld.CIT(E). Accordingly, interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to present its case and details properly before the Ld.CIT(E). 5. Accordingly, we set aside the order passed by the Ld.CIT(E) and restore all the issues to the file of the Ld.CIT(E) for examining the application filed by the assessee seeking registration u/s.12AB of the Act 3 ITA No. 5877/Mum/2024 afresh. We also direct the assessee to be diligent in furnishing the details that were/may be called-for by the Ld.CIT(E). 6. In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 02-01-2025 Sd/- Sd/- [SUNIL KUMAR SINGH] [B.R. BASKARAN] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated:- 02-01-2025 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, “D” Bench, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "