SHRI RAMKUMAR MEGHRAJ TEKARIWAL BARAGANWALA CHARITABLE TRUST ,MUMBAI V. CIT(EXEMPTION), MUMBAI

ITA 4808/MUM/2025

AI Insights

The case involves Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust, which appealed against the decision of the CIT(Exemptions), Mumbai, rejecting their application for final approval under section 80G of the Income Tax Act, 1961. The rejection was based on the incorrect mentioning of the section in their application form 10AB. The Tribunal noted that the trust had a valid registration under sections 12A and 80G and had inadvertently cited the wrong sub-clause in their application. The Tribunal referenced a similar case, Rotry Charity Trust vs. CIT(E) Mumbai, to support the trust's position and remitted the matter back to the CIT(Exemptions) for reconsideration under the correct clause.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779856 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 30-07-2025
• Other Referred Cases: Rotry Charity Trust vs. CIT(E) Mumbai in ITA No. 6133/Mum/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMA SHANKAR PRASAD
• Assessee Lawyers: NEELAM JADHAV
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) AND SMT. RENU JAUHRI (ACCOUNTANT MEMBER) I.T.A. No. 4808/Mum/2025 Assessment Year: N.A Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust B-203, Sankalp Siddhi co.op Hsg. Society, S.B. Marg, Matunga Road, Mumbai-400016 PAN:AAATR0664H Vs. CIT(Exemptions), Cumballa Hill, MTNL Telephone Exchange Building, Pedder Road, Dr Gopalrao Deshmukh Marg, Cumballa Maharashtra-400026 (Appellant) (Respondent) Appellant by Ms. Neelam Jadhav Respondent by Shri Umashankar Prasad, CIT D.R. Date of Hearing 07.10.2025 Date of Pronouncement 13.10.2025 ORDER Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 17/06/2025 passed by Ld.CIT(E), Mumbai on following grounds of appeal : “1. On the facts and circumstances of the case and in law, the Honourable Learned Commissioner of Income Tax (Exemptions) (\" Printed from counselvise.com 2 ITA 4808/Mum/2025; A.Y. N.A Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust Honourable Ld. CIT(E)\") has erred in rejecting the application for approval under section 80G of the Income Tax Act, 1961 (\"The Act\"), on the ground that the application was filed under a wrong section, without appreciating that the appellant trust has otherwise fulfilled all the conditions prescribed for obtaining final approval. 2. The Honourable Ld. CIT(E) is not considering the adjournment request submitted before him against show cause notice and also not giving a proper opportunity of being heard, is an amount to a violation of the principles of natural justice. 3. The Honourable Ld. CIT(E) has erred in rejecting the application purely on technical grounds” Brief facts of the case are as under: 2. The assessee is charitable trust and filed application in form 10AB seeking approval under clause (ii) of the first proviso to subsection 5 of section 80G of the Act. The assessee was thus granted provisional approval by issuing form 10AC on 01/10/2021 to assessment year 2024-25. 2.1 The Ld.CIT(E) rejected the application due to wrong mentioning of the clause under 1st proviso 80(5) of the Act. Aggrieved by the order of the Ld.CIT(E) the assessee is in appeal before this Tribunal. 3. The Ld.AR submitted that, the assessee being an old trust, it had to apply for renewal under section 80G(5)(iii) as against 80G(ii). He thus submitted that the registration u/s.12A is available to the assessee and relied on the decision of Coordinate Bench of this Tribunal in case of Rotry Charity Trust vs. CIT(E) Mumbai in ITA No. 6133/Mum/2024, vide order dated 09/01/2025 wherein identical issue was considered. Printed from counselvise.com 3 ITA 4808/Mum/2025; A.Y. N.A Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust On the contrary, the Ld.DR relied on the orders passed by the authorities below. We have perused the submissions advance by both sides in the light of record placed before us. 4. It is noted that the assessee is admittedly an old trust having a valid registration under section 12A and 80G. 4.1 It is noted that while filing Form for final registration in Form 10AB has inadvertently mentioned the wrong section as sub-clause (b)(ii) of first proviso to subsection (5) of section 80G instead of clause (iii) of first proviso to subsection (5) of section 80G 4.2 From the perusal of provisions applicable to the facts of present case, in our considered view, there is merit in claim of the Id. AR that assessee has selected the wrong section code inadvertently while filing the application for final registration in Form 10AB 4.3 In view of these we remit the issue back to the file of Ld.CIT(E), with a direction to consider the application under Clause (iii) to first proviso to section 80G(5) of the Act, and to decide the application of the assessee for final approval as possible before the expiry of the provisional approval granted in order to enable the assessee to have the benefit of section 80G without any break. Accordingly the grounds raised by the assessee stands allowed for statistical purposes. In the result the appeal filed by the assessee stands allowed for statistical purposes. Printed from counselvise.com 4 ITA 4808/Mum/2025; A.Y. N.A Shri Ramkumar Meghraj Tekariwal Baraganwala Charitable Trust Order pronounced in the open court on 13/10/2025 Sd/- Sd/- (RENU JAUHRI) (BEENA PILLAI) Accountant Member Judicial Member Mumbai: Dated: 13/10/2025 Poonam Mirashi, Stenographer Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order (Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "