SHREANS DAGA FOUNDATION,MUMBAI V. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

ITA 1109/MUM/2025

AI Insights

The case involves M/s. Shreans Daga Foundation, which appealed against the decision of the Commissioner of Income Tax (Exemptions) who had rejected their application for regular approval under section 80G(5) of the Income Tax Act, 1961. The initial rejection was based on the foundation's provisional status, which did not meet the criteria under the specific sub-clause they had applied under. The Tribunal found that the Commissioner had not considered the application under the correct sub-clause and thus remanded the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396919 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.A. DHYANI; LD.
• Assessee Lawyers: ABHISHEK MODI; LD; ITA NO.M
• Keywords: Set aside
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “C”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SMT RENU JAUHRI, ACCOUNTANT MEMBER ITA No.1109/M/2025 Assessment Year: 2025-26 M/s. Shreans Daga Foundation, Floor 6, Plot No.85, Maker Towers (E), GD Somani Marg, Cuffe Parade, Colaba, Mumbai – 400 005 PAN: AAFCC5220Q Vs. The Commissioner of Income Tax Exemptions, 6th Floor, MTNL Telephone Exchange Bldg., Peddar Road, Dr. Gopalrao Deshmukh Marg, Cumballa Hills, Mumbai – 400 026 (Appellant) (Respondent) Present for: Assessee by : Shri Abhishek Modi, Ld. A.R. Revenue by : Shri R.A. Dhyani, Ld. D.R. Date of Hearing : 08.05.2025 Date of Pronouncement : 30.05.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 16.01.2025, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) u/s 10AD of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2025-26. 2. In this case, the Assessee was granted provisional approval u/s 80G of the Act in form 10AC, which was valid from 05.09.2022 to A.Y. 2025-26 and therefore the Assessee by filing application in form 10AB had sought for regular approval u/s 80G(5) of the Act. 3. The Ld. Commissioner rejected the said application filed by the Assessee by mainly holding as under: ITA No.1109/M/2025 M/s. Shreans Daga Foundation 2 “That the Assessee has applied for registration u/s 80G of the Act under sub-clause (ii) of 1st proviso to sub section 5 of section 80G of the Act, which is valid only for the trusts already having regular approval for 5 years and is seeking renewal of regular approval, which is due to expire. As the Assessee having provisional registration for 3 years, does not qualify to make the application under clause (ii) of 1st proviso to sub section (5) of section 80G. Thus, the application is not maintainable and stands rejected”. 4. The Assessee, being aggrieved, challenged the impugned order, by filling instant appeal before this Court. 5. Having heard the parties and perusing the material available on record and giving thoughtful considerations to the peculiar facts and circumstances of the case, we observe that the Assessee, in the application for registration u/s 80G(5) of the Act, may be overlooking or inadvertently mentioned sub clause (ii) of 1st proviso to sub section (5) of section 80G of the Act instead of sub clause (iii) of the said proviso. In our considered view, the Ld. Commissioner would have sidelined this mistake and decided the application filed by the Assessee in its right perspective and proper manner, but simply on the wrong mentioning of the sub clause, rejected the application, which in fact expanded the litigation, and therefore such approach is not acceptable. Thus, was are inclined to set aside the impugned order and consequently remanding the case to the file of the Ld. Commissioner for decision afresh, by taking into consideration the application filed by the Assessee for registration u/s 80 G(5) of the Act under sub clause (ii) to the proviso to such section by considering the same as filed under sub clause (iii) to the proviso to section 80G(5) of the Act. Thus, the case is accordingly remanded to the file of Ld. Commissioner for decision afresh. ITA No.1109/M/2025 M/s. Shreans Daga Foundation 3 6. In the result, the appeal filed by the Assessee stands allowed for statistical purposes. Order pronounced in the open court on 30.05.2025. Sd/- Sd/- (RENU JAUHRI) (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. "