SHRI AJRAMAR STHANAKWASI JAIN SANGH GRANT ROAD (WEST),MUMBAI V. CIT EXEMPTIONS, MUMBAI

ITA 6039/MUM/2024

AI Insights

The case involves Shri Ajramar Sthanakwasi Jain Sangh, a trust engaged in religious activities, which appealed against the decision of the Commissioner of Income-tax (Exemptions), Mumbai. The CIT(E) had rejected the trust's application for registration under section 12AB of the Income-tax Act, 1961, due to non-submission of required documents and insufficient opportunity given to comply. The tribunal found that the trust was not given adequate time to respond to the third notice, which led to the rejection of their application. The tribunal's decision to remand the case back to the CIT(E) was based on the need to provide the trust a fair opportunity to submit the necessary documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26645 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K.R. SUBHASH
• Assessee Lawyers: ASHOK MEHTA
• Keywords: Principle of natural justice
• Section: 12A

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No. 6039/MUM/2024 (A.Y. 2025-26) Shri Ajramar Sthanakwasi Jain Sangh Grant Road (West) R No. 3, Ground Floor, Nishar Bhuvan, 14-A, Sleater Road, Grant Road (West), Mumbai-400007 v/s. बनाम CIT Exemptions 601, 6th Floor, Cumbulla Hill MTNL Building, Pedder Road, Mumbai-400026 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAITSK4344K Appellant/अपीलार्थी .. Respondent/प्रतिवादी Assessee by : Shri Ashok Mehta Revenue by : Dr. K. R. Subhash Date of Hearing 01.01.2025 Date of Pronouncement 02.01.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Exemption), Mumbai [hereinafter referred to as “CIT(A)”] dated 25.09.2024 rejecting application for registration u/s 12AB of the Income-tax Act, 1961 [hereinafter referred to as “Act”]. 2. The assessee has raised following grounds of appeal: 1. The Learned CIT Exemptions Mumbai erred in rejecting the assessee's trust application u/s 12AB(1)(b) in Form 10AB. P a g e | 2 ITA No. 6039/Mum/2024 A.Y. 2025-26 Shri Ajramar Sthanakwasi Jain Sangh Grant Road (West) 2. The Learned CIT Exemptions Mumbai erred in not giving enough opportunity to the trust to submit its details violating the principles of natural justice as per the table of the notices herein below. (The assessee trust application in form 10AB was filed on 22nd March, 2024.) Date of Notice DIN No. Due Date Reply filed 5th July ITBA/EXM/F/EXM43/2024- 25/1066437456(1) 2nd August 17th August 2nd September ITBA/EXM/F/EXM43/2024- 25/1068272626(1) 9th September 3rd September 14th September ITBA/EXM/F/EXM43/2024- 25/1068708431(1) 20th September No submission due to the accountant having missed the notice. 3. The Learned CIT Exemptions erred in rejecting 12A application on the ground of non-submission of documents pertaining to foreign expenses as mentioned in the trust deed though no foreign expenditure was incurred by the trust in any of the previous years” 3. Brief facts of the case are that the assessee is a trust which is formed on 21.01.2009 and has been carrying out religious activity. It was granted provisional registration on the basis of an application filed on 23.08.2023 in Form 10A. Subsequently, the trust filed an application in Form 10AB on 22.03.2024 for regular registration. Ld. CIT(E) issued three notices for seeking certain details. While partial details in response to first two notices were submitted by the assessee, no compliance could be made to the third notice issued on 14.09.2024 as only seven days’ time was given for compliance. Ld. CIT(E), thereafter, rejected the application for registration vide order dated 25.09.2024. Aggrieved with the order, the assessee is in appeal before us. P a g e | 3 ITA No. 6039/Mum/2024 A.Y. 2025-26 Shri Ajramar Sthanakwasi Jain Sangh Grant Road (West) 4. Ld. AR has submitted that an adequate opportunity was not provided to the assessee for furnishing the details sought vide notice dated 14.09.2024. He, therefore, requested for setting aside the matter to enable the assessee to furnish the requisite details before Ld. CIT(E). Ld. DR has not objected to the proposition made by the Ld. AR. 5. We have heard the rival submissions and perused the material placed before us. It is seen that only a week’s time was given to the assessee for furnishing the details in response to notice dated 14.09.2024. Thereafter, in view of limitation of time, Ld. CIT(E) passed an order dated 25.09.2024 rejecting the application. We, accordingly, deem it proper to remand back the matter to Ld. CIT(E) for a fresh adjudication. The assessee is directed to make requisite compliance before Ld. CIT(E), who is directed to decide the application within three months from the date of receipt of this order 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 02.01.2025. Sd/- Sd/- SAKTIJIT DEY RENU JAUHRI (उपाध्यक्ष/VICE PRESIDENT) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai P a g e | 4 ITA No. 6039/Mum/2024 A.Y. 2025-26 Shri Ajramar Sthanakwasi Jain Sangh Grant Road (West) दिनाुंक /Date 02.01.2025 अननक ेत स ुंह राजपूत/ स्टेनो आदेश की प्रतितलति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीय अतिकरण/ ITAT, Bench, Mumbai. "