SHREE RUSHABH APARTMENT JAIN SANGH,MUMBAI V. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

ITA 5842/MUM/2024

AI Insights

The case involves the Shree Rushabh Apartment Jain Sangh, a religious 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 initial rejection was based on the incomplete application and the perception that the trust's activities were confined to a specific religious community, which was viewed as a violation of section 13(1)(b) of the Act. The Tribunal found that the CIT(Exemptions) had relied on an erroneous submission by the assessee without adequately considering the Trust Deed, leading to the decision to set aside the CIT's order and remand the matter for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471316 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: BHARAT KUMAR
• Keywords: Set aside; 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. 5842/Mum/2024 Shree Rushabh Apartment Jain Sangh, 2102, Rushab Apartment Dr. Parekh Street, Prathna Samaj, Girgaon S.O. Mumbai PAN : ABBTS7139L vs. The CIT(Exemptions), 6th Floor, Cumballa Hills, MTNL TE Building, Pedder Road, Dr. Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai (Appellant) (Respondent) Assessee by : Shri Bharat Kumar Revenue by : Shri R.R. Makwana, Addl.CIT 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.26-09-2024 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. 5842/Mum/2024 2. The facts relating to the case are that the assessee is a religious trust and it filed application in Form-10AB seeking registration u/s. 12AB of the Act. The Ld.CIT(E) noticed that the application was not complete in all respects and accordingly issued a notice dt. 05-07-2024 to the assessee. In response thereto, the assessee filed the relevant documents and also some explanation. In the submissions made, it was mentioned that trust is a religious trust and activities of the trust are for SwetamberMurtipujak Jains only. Taking cognizance of the said submission, the Ld CIT(E) took the view that the registration u/s 12AB cannot be granted when the activities of the trust are confined to a particular religious community.He also took the view that the same is in violation of sec.13(1)(b) of the Act.Accordingly, he rejected the application filed by the assessee. 3. The Ld.AR submitted that the submissions made by the assessee- trust was erroneous and contrary to the Trust Deed. The Ld.AR furnished a copy of Trust Deed and submitted that the trust deed nowhere states that the activities of the Trust are restricted to Swetamber Murtipujak Jains only. The Ld.AR submitted that the Ld CIT(E) was not justified in relying upon the erroneous submission made by the assessee without calling for any explanation and further, the Ld CIT(E) should have consideredthe Trust Deed. The Ld.AR also submitted that the Ld.CIT(E) has referred to the provisions of section 13(1)(b) of the Act, but the said section will apply only to charitable trusts and not to the religious trusts. Accordingly, the Ld.AR submitted that the assessee may be provided with an opportunity to explain all these aspects to the satisfaction of the Ld. CIT(E) and also to furnish the details that may be called for by him. 4. We heard the parties and perused the record. Having regard to the submissions made by the Ld.AR, we are of the view that the application 3 ITA No. 5842/Mum/2024 filed by the assessee seeking registration u/s.12AB of the Act needs to be examined afresh. Accordingly, we set aside the order passed by the Ld.CIT(E) and restore all the issues to his file with the direction to examine the application afresh. The assessee is also directed to fully co-operate with the Ld.CIT(E) for expeditious completion of the matter. 5. 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 "