RADHALILA VAISHNAV CHARITABLE TRUST ,MUMBAI V. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

ITA 574/MUM/2025

AI Insights

M/s. Radhalila Vaishnav Charitable Trust appealed against the rejection of their application for registration under section 12AB of the Income Tax Act, 1961, for the assessment year 2024-25. The Commissioner of Income Tax (Exemptions) had initially rejected the application due to non-compliance in providing a provisional registration order in form 10AC, despite multiple notices. The tribunal found that there was a misunderstanding regarding the documents required and remanded the case back to the Commissioner for a fresh decision, emphasizing the need for substantial justice and a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33728 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA; LD.
• Assessee Lawyers: BHARAT J. RUGHANI; LD
• Keywords: Opportunity of being heard; Charitable institution
• Section: 12AA; 101

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “D”, MUMBAI BEFORE SHRI SHRI BR BASKARAN, ACCOUNTANT MEMBER AND NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No.574/M/2025 Assessment Year: 2024-25 M/s. Radhalila Vaishnav Charitable Trust, B007, Kanakia Park B Wing, Thakur Complex, Opp Mahindra and Mahindra, Poisar, Kandivali (E) S.O., Mumbai, Maharashtra – 400 101 PAN: AADTR5907N Vs. CIT (Exemptions), Room No.601, 6th Floor, Cumballa Hill MTNL TE Building, Pedder Road, Dr. Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai Maharashtra - 400026 (Appellant) (Respondent) Present for: Assessee by : Shri Bharat J. Rughani, Ld. A.R. Revenue by : Shri R.R. Makwana, Ld. Sr. D.R. Date of Hearing : 18 . 03 .2025 Date of Pronouncement : 25 . 03 .2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 29.12.2024, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) u/s 12AB(I)(b)(ii) of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2024-25. ITA No.574/M/2025 M/s. Radhalila Vaishnav Charitable Trust 2 2. In the instant case, the Assessee had applied for registration u/s 12AB in Form no.10AB, which was taken into consideration while issuing the notice dated 19.10.2024, whereby the Assessee was requested to furnish the complete set of documents (including copy of the provisional registration in form 10AC) as mentioned in rule 11AA (2) of the Income Tax Rules 1962 {in short “Rules”}. However, the Assessee made no compliance and therefore the Ld. Commissioner again issued a notice dated 10.12.2024, in response to which the Assessee vide letter dated 12.12.2024 made its submission. The Ld. Commissioner on perusing the reply of Assessee, observed that production of copy of provisional order issued in form 10AC was clearly mentioned in the notice at point no.4. however, the Assessee has not provided in its submission and therefore he is having left with no other option but to reject the application seeking u/s 12AB of the Act, hence rejected the same. 3. The Assessee, being aggrieved, challenged the said rejection of application for registration u/s 12AA of the Act. 4. We have given thoughtful considerations to the peculiar facts and circumstances of the case. The Assessee has claimed that it has not received any such Form no.10AC, as asked by the Ld. ITA No.574/M/2025 M/s. Radhalila Vaishnav Charitable Trust 3 Commissioner to produce, but in fact the Assessee has received order for provisional registration u/s 12AA of the Act and therefore on the basis of the said provisional registration, the Assessee has sought for the regular registration. 5. We have given thoughtful considerations to the peculiar facts and circumstances of the case. It appears that there is some mis- understanding in understanding the relevant provisions of sections and Form etc. as applicable to this case by the Assessee as in spite of asking the provisional registration by the Ld. Commissioner , the Assessee neither clarified nor produced such provisional registration which resulted into rejection of the application filed by the Assessee and therefore considering the peculiar facts and circumstances in totality and for the just decision of the case and for substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee. The Assessee is also directed to file the requisite documents and details as called for already and to be called for by the Ld. Commissioner in due course of time for proper adjudication of the case. Thus, the case is remanded to the file of the Ld. Commissioner accordingly. ITA No.574/M/2025 M/s. Radhalila Vaishnav Charitable Trust 4 6. In the result, the appeal filed by the Assessee stands allowed for statistical purposes. Order pronounced in the open court on 25.03.2025. Sd/- Sd/- (BR BASKARAN) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "