SHRI SAMASTA KUTCHI DASA OSWAL JAIN MAHAJAN,MUMBAI V. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

ITA 4894/MUM/2024

AI Insights

The case involves Shri Samasta Kutchi Dasa Oswal Jain Mahajan, who appealed against the order of the CIT (Exemptions) Mumbai, which denied their registration under sections 12AA and 80G of the Income Tax Act, 1961. The CIT (Exemptions) initially rejected the application based on the trust's benefit being confined to a particular community, which was seen as a violation of section 13(1)(b) of the Act. The assessee argued that the trust serves the welfare of people at large and not just a specific community. The Tribunal found that the CIT (Exemptions) had not adequately considered the documents and explanations provided by the assessee, leading to the decision to remand the matter back for a thorough re-examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473380 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 07-11-2024
• Assessment Year: misc
• Appeal Filed On: 23-09-2024
• Other Referred Cases: CIT vs. Dawoodi Bohra Jamaat (2014) 364 ITR 31 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHOR DHULE
• Assessee Lawyers: NARAYAN ATAL
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘G’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI OMKARESHWAR CHIDARA, ACCOUNTANT MEMBER ITA No.4894/Mum/2024 (Assessment Year :2025-26) Shri Samasta Kutchi Dasa Oswal Jain Mahajan 302/306, Shri Anantnathji Jain Temple Narshi Natha Stree Mumbai – 400 009 Vs. CIT (Exemptions) Mumbai PAN/GIR No.AANTS1160J (Appellant) .. (Respondent) Assessee by Shri Narayan Atal-CA Revenue by Shri Dr. Kishor Dhule-CIT DR Date of Hearing 07/11/2024 Date of Pronouncement 13/11/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 26/07/2024 passed by CIT (Exemption) Mumbai denying registration u/s.12AA. 2. In the grounds of appeal assessee has raised the following grounds:- ITA No.4894/Mum/2024 Shri Samasta Kutchi Dasa Oswal Jain Mahajan 2 “1. The Learned Commissioner of Income Tax (Exemptions) Mumbai (hereinafter referred to as the CIT(E)) erred in not granting the approval u/s. 12A(1)(ac) and u/s. 80G(5) of the Income Tax Act. 1961. 2. Your appellant submits that on the facts and circumstances of the case and in law, there is no justifiable ground for rejection of application filed u/s. 12A(1)(ac) and u/s. 80G(5) of the Act. 3. The Learned CIT(E) failed to appreciate that the appellant fulfils all the conditions listed out in section 12A and section 80G of the Act. 3. From the perusal of the impugned order it is see that ld. CIT(Exemption) has denied registration after observing and holding as under:- 1. M/s Shri Samasta Kutchi Dasa Oswal Jain Mahajan (hereafter 'the applicant' or 'the assessee'] filed application in Form 10AB under Section 12A(1)(ac)(iii) of the Act. The applicant has been granted Provisional Approval under Section 12A of the Act in Form 10AC by CPC Bengaluru. 2. On verification of the Trust deed/ MoA of the trust it is observed that the assessee trust is for the benefit of the people belonging to the Mahajans which are situated in Kutch and Halar district. i.e. for a particular community 3. The assessee trust is in violation of the provisions of section 13(1)(b). In view of the same, this application for grant of approval is not maintainable and the same is rejected. 4. For statistical purposes, this application for approval under section 80G is non maintainable and stands rejected. 4. Before us ld. Counsel submitted that before the ld. CIT(E) assessee had filed the entire copy of Trust Deed alongwith ITA No.4894/Mum/2024 Shri Samasta Kutchi Dasa Oswal Jain Mahajan 3 objects and also all the details and submissions which were e- filed, uploading all the details which have also been given in the paper book before us from pages 28-33 and again assessee had filed hard copies on 15/07/2024 before the Ld. CIT(E). None of these documents have been considered properly wherein assessee has duly explained that in the case of the assessee there is no violation of Section 13(1)(b) and it is not for the benefit of particular people, albeit for the welfare of the people at large. 5. Since the ld. CIT (Exemptions) has neither assigned any reasons or has given any speaking order on the details filed by the assessee nor has considered the explanation, therefore, in the interest of justice, the matter is restored back to the file of the ld. CIT (Exemption) to decide the issue afresh and pass speaking order after considering all the relevant materials filed before us and also various judgments including the principles laid down by the Hon’ble Supreme Court in the case of CIT vs. Dawoodi Bohra Jamaat reported in (2014) 364 ITR 31 (SC). 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 13th November, 2024. Sd/- (OMKARESHWAR CHIDARA) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 13/11/2024 KARUNA, sr.ps ITA No.4894/Mum/2024 Shri Samasta Kutchi Dasa Oswal Jain Mahajan 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "