PURVA SEEMA VIKAS PRATISTHAN CHARITABLE INSTITUTION ,MUMBAI V. CIT(EXEMPTION), MUMBAI

ITA 5097/MUM/2025

AI Insights

The case involves Purva Seema Vikas Pratisthan Charitable Institution, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Mumbai, rejecting their application for approval under Section 80G of the Income Tax Act, 1961. The primary reason for rejection was the absence of a concurrent application for registration under Section 12AB at the time of the initial decision. The Tribunal noted that the institution had subsequently filed for registration under Section 12AB and decided that the matter should be reconsidered by the Commissioner in light of this new application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783672 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 20-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.A. DHYANI
• Assessee Lawyers: ASHISH THAKURDESAI
• Keywords: Set aside; Competent authority; Charitable institution
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI ANIKESH BANERJEE (JUDICIAL MEMBER) ITA No. 5097/MUM/2025 Assessment Year: N.A. Purva Seema Vikas Pratisthan Charitable Institution 5/166, Yoganand Co-operative Housing Society Limited, Paranjpe Nagar, Vazira Naka, Borivali West, Mumbai-400092 Vs. CIT(Exemptions), Mumbai 601, 6th Floor, Cumballa Hill MTNL TE Building, Pedder Road, Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai 400026 PAN NO. AABTP4934D Appellant Respondent Assessee by : Shri. Ashish Thakurdesai Revenue by : Shri R. A. Dhyani, (CIT DR) Date of Hearing : 16/10/2025 Date of pronouncement : 03/11/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 28.06.2025 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai [in short ‘the Ld. CIT(E)’] rejecting the applications of the assessee for approval u/s. 80G of the Income Tax Act, 1961 [in short the ‘Act’], raising following grounds: “1. On facts, in circumstances of the case and in law, the learned Commissioner of Income Tax Exemption erred in rejecting the application of the appellant for regularisation of provisional application in Form 10AB. 2. The appellant craves leave to add, alter, modify or delete the above Ground of Appeal.” Printed from counselvise.com 2 ITA No. 5097/Mum/2025 Purva Seema Vikas Pratisthan Charitable Institution 2. At the very threshold of hearing, the Learned Counsel for the assessee drew our attention to the paper book comprising forty-two pages, and submitted that the application preferred by the assessee for approval under Section 80G of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) came to be rejected by the Learned Commissioner of Income Tax (Exemptions) [in short “Ld. CIT(E)”], primarily on the ground that the assessee had not, at the relevant time, filed an application for regular registration under Section 12AB of the Act. 2.1 It was, however, pointed out that subsequent to the passing of the impugned order, the assessee has duly filed the application for registration under Section 12AB before the Ld. CIT(E). A copy of such application is placed at pages 33 to 42 of the paper book. The Learned Counsel, therefore, pleaded that the issue may be restored to the file of the Ld. CIT(E) for a fresh adjudication of the assessee’s claim for approval under Section 80G, after taking into account the assessee’s application for registration under Section 12AB and in accordance with law. 2.2 The Learned Departmental Representative, in fairness, did not seriously controvert the submission so advanced on behalf of the assessee, and left the matter to the discretion of the Bench. 3. We have given our thoughtful consideration to the rival submissions and have perused the material available on record. It is manifest that the grant of approval under Section 80G is consequential and dependent upon the registration of the Printed from counselvise.com 3 ITA No. 5097/Mum/2025 Purva Seema Vikas Pratisthan Charitable Institution institution under Section 12AB of the Act. In the absence of such registration, the approval under Section 80G cannot, in law, be accorded. However, as the assessee has now duly moved an application for registration under Section 12AB before the competent authority, the ends of substantial justice would be met if the matter is restored to the file of the Ld. CIT(E) for reconsideration of the assessee’s claim under Section 80G, post the disposal of the said application under Section 12AB. 3.1 We accordingly set aside the impugned order of the Ld. CIT(E) and remit the matter back to his file with a direction to adjudicate afresh the assessee’s application for approval under Section 80G, in accordance with law and upon due consideration of the assessee’s registration under Section 12AB. 4. In the result, the Ground No. 1 appeal of the assessee is allowed for the statistical purposes. 5. In the result, appeal of the assessee is allowed for the statistical purposes. Order is pronounced in the open court on 03.11.2025 Sd/- Sd/- ANIKESH BANERJEE OM PRAKASH KANT (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Place: Mumbai Dated:03.11.2025 Divya R. Nandgaonkar Stenographer Printed from counselvise.com 4 ITA No. 5097/Mum/2025 Purva Seema Vikas Pratisthan Charitable Institution आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to: 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. आयकर आयुƅ / CIT 4. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण DR, ITAT, Mumbai 5. गाडŊ फाईल / Guard file. सȑािपत Ůित //True Copy// आदेशानुसार / BY ORDER, सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण / ITAT, Bench, Mumbai. Printed from counselvise.com "