SHREE MAHYAVANSHI SAMAJ BOMBAY TRUST,N M JOSHI MARG,LOWER PAREL V. CIT (EXEMPTIONS), CUMBALLA HILL MTNL TE BUILDING, PEDDER ROAD

ITA 410/MUM/2025

AI Insights

The case involves Shree Mahyavanshi Samaj Bombay Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Mumbai, rejecting their application for renewal of provisional registration under Section 12A of the Income Tax Act, 1961. The initial rejection was based on the application being filed under an incorrect provision applicable to organizations with regular registration. The Tribunal found that the Assessee was not given an opportunity to correct the mistake in their application and thus allowed the appeal, setting aside the CIT(E)'s order and remanding the matter for reconsideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472001 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE
• Section: 12A

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SMT RENU JAUHRI, ACCOUNTANT MEMBER ITA No. 410/MUM/2025 (Assessment Year: 2024-2025) Shree Mahyavanshi Samaj Bombay Trust 91 E, Madhav Bhuvan 21/22, N M Joshi Marg, Lower Parel, Mumbai 400013 …………. Appellant [PAN:AAATS06181] Commissioner of Income Tax (Exemptions), Mumbai Room No. 601, 6th Floor, Cumballa Hill MTNL, TE Building, Pedder Road, Dr gopalrao Deshmukh Marg, Cumballa Hill, Mumbai 400026 Vs …………. Respondent Appearance For the Appellant/Department For the Respondent/Assessee : : Shri Pawan Choudhary Smt. Sanyogita Nagpal (CIT DR) Date Conclusion of hearing Pronouncement of order : : 10.03.2025 12.03.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member: 1. The present appeal preferred by the Assessee is directed against the order, dated 09/11/2024, passed by Commissioner of Income Tax (Exemption), Mumbai [hereinafter referred to as the ‘CIT(E)’] whereby the application filed by the Assessee in Form No.10AB seeking registration under Section 12A of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] was rejected. 2. The relevant facts in brief are that the Assessee was granted Provisional Registration under Section 12A of the Act in Form 10AC [valid from Assessment Year 2022-2023 to Assessment Year 2024- ITA No. 410/Mum/2025 Assessment Year: 2024-25 2 2025]. The Assessee made an application in Form 10AB seeking renewal of registration which was rejected by way of the order impugned in the following manner: “2. As the trust is registered, provisions of section 12A(1)(ac)(iii) are applicable to it, which is reproduced as under: (iii) where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier; 3. On perusal of the From 10AB filed by the assessee it was observed that the assessee has applied under section 12A(1)(ac)(ii) which is valid only for trusts already having regular registration for five years and is seeking renewal of regular registration which is due to expire. The assessee, having provisional registration for three years, does not qualify to make the application u/s 12A(1)(ac)(ii).Thus, the application for registration in Form 10AB filed by the assessee is not allowable on the ground of application filed under wrong section. 4. In conclusion this application stands rejected.” 3. Being aggrieved, the Assessee has preferred the present appeal before this Tribunal. 4. During the course of hearing the Learned Authorised Representative for the Assessee submitted that the Assessee had applied for renewal of provisional registration. However, the aforesaid application was rejected vide Order, dated 09/11/2024, on the ground that the renewal application was made under wrong provision [i.e. Section 12A(1)(ac)(ii)] which was applicable to charitable organization already holding regular registration and seeking renewal of the same. The grievance of the Assessee is that the Assessee was not put to notice about the defect in the application and the order rejecting application was passed without giving any opportunity to the Assessee. Per contra, the it was submitted by the Learned Departmental Representative that since ITA No. 410/Mum/2025 Assessment Year: 2024-25 3 the Assessee had made application under incorrect provision, the CIT(E) was justified in rejecting the application. 5. We have considered the rival submission, perused the material on record and examined the position in law. 6. It is admitted position that the Assessee was previously granted provisional registration. It is the case of the Assessee that the application was intended to be made under Section 12A(1)(ac)(iii) of the Act. However, inadvertently, the incorrect provision [Section 12A(1)(ac)(iii)] was stated in the application. Since the Assessee was not confronted with defect in the application, the Assessee was not able to explain before the Learned CIT(E) that an unintentional mistake had occurred while filing the application. We find merit in the aforesaid contention advanced on behalf of the Assessee. 7. Taking into consideration overall facts and circumstances of the present case, we deem it appropriate to grant another opportunity to the Assessee to set out a case for renewal of registration in terms of Section 12A(1)(ac)(iii) of the Act. Accordingly, we set aside the Order, dated 09/11/2024, passed by the Learned CIT(E) and restore the application filed by the Assessee to its original number. The Learned CIT(E) is directed to either treat the application filed by the Assessee as application filed under Section 12A(1)(ac)(iii) of the Act or grant opportunity to the Assessee to file rectified application. It is clarified that the Learned CIT(E) would be at liberty to decide upon the merits of the application as per law after granting the Assessee an opportunity to make submission and file documents/details in support of the application. All rights and contentions of the Assessee are left open. ITA No. 410/Mum/2025 Assessment Year: 2024-25 4 8. In terms of paragraph 7 above, the appeal preferred by the Assessee is allowed for statistical purposes. 9. In conclusion, ITA No.410/MUM/2025 is dismissed. Order pronounced on 12.03.2025. Sd/- Sd/- (Renu Jauhri) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंकDated : 12.03.2025 Divya Nandgaonkar ,Stenographer ITA No. 410/Mum/2025 Assessment Year: 2024-25 5 आदेशकीप्रतितितिअग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी/ The Appellant 2. प्रत्यर्थी/ The Respondent. 3. आयकरआय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीयप्रदिदनदध ,आयकरअपीलीयअदधकरण ,म ुंबई/ DR, ITAT, Mumbai 6. ग र्डफ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपिप्रदि //True Copy// उप/सह यकपुंजीक र /(Dy./Asstt.Registrar) आयकरअपीलीयअदधकरण, म ुंबई / ITAT, Mumbai "