SHRI VARDHMAN SHASHVAT TRUST,MUMBAI V. CIT (EXEMPTIONS), MUMBAI, MUMBAI

ITA 1143/MUM/2025

AI Insights

The case involves Shri Vardhman Shashvat Trust appealing against the rejection of their applications for registration under sections 12AB and 80G of the Income Tax Act by the CIT (Exemptions), Mumbai. The Trust argued that the rejection was based on noncompliance with a notice issued at the fag end of the time barring period, without offering a reasonable opportunity to be heard. The Tribunal noted that the CIT(E) had not considered the Trust's request for more time and had passed the order in violation of the principles of natural justice. Consequently, the Tribunal remitted the matter back to the CIT(E) for reconsideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313080 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.PANDA
• Assessee Lawyers: MEHUL SHAH
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) AND SMT. RENU JAUHRI (ACCOUNTANT MEMBER) I.T.A. No. 1142/Mum/2025 Assessment Year: 2024-25 & I.T.A. No. 1143/Mum/2025 Assessment Year: 2024-25 Shri Vardhman Shashvat Trust 1301 Om Shyam Apartment Plot No 172 90 Feet Road, Ghatkopar East Maharashtra-400077 PAN:ABHTS7949E Vs. CIT (Exemptions), Mumbai 601, MTNL Building, Cumballa Hill, Pedder Road, Maharashtra-400026 (Appellant) (Respondent) Appellant by Shri Mehul Shah Respondent by Shri B. Panda CIT D.R. Date of Hearing 09.04.2025 Date of Pronouncement 28.04.2025 ORDER Per: Smt. Beena Pillai, J.M.: The present appeals filed by the assessee arises out of separate orders dated 28/12/2024, rejecting registration 2 ITA No.1142 & 1143/Mum/2025; A.Y. 2024-25 Shri Vardhman Shashvat Trust u/s.12AA and 80G of the Act passed by Ld.CIT(E), Mumbai for assessment year 2024-25 on following grounds of appeal : I.T.A. No. 1142/Mum/2025 “ Being aggrieved by the order of the Learned – CIT (Exemption), Mumbai, this appeal petition is filed on the following amongst other grounds of appeal, which it is prayed may be considered without prejudice to one another. 1. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Exemption), Mumbai erred in rejecting application in form no. 10AB for approval / renewal of registration under section 80G alleging noncompliance to second notice issued at fag end of time barring period without offering reasonable opportunity of being heard. 2. Your Appellant craves leave to add to, amend, alter, modify, and / or delete any of the above grounds of appeal at or before final disposal of appeal.” I.T.A. No. 1143/Mum/2025 “ Being aggrieved by the order of the Learned-CIT (Exemption), Mumbai, this appeal petition is filed on the following amongst other grounds of appeal, which it is prayed may be considered without prejudice to one another. 1. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income-tax (Exemption), Mumbai erred in rejecting application in form no. 10AB for approval / renewal of registration under section 12AB alleging noncompliance to second notice issued at fag end of time barring period without offering reasonable opportunity of being heard. 2. Your Appellant craves leave to add to, amend, alter, modify, and / or delete any of the above grounds of appeal at or before final disposal of appeal.” Brief facts of the case are as under: 2. The assessee is registered public charitable trust and was granted provisional registration u/s.12AB of the Act from assessment year 2024-25 till 2026-27 effective from 29/12/2023. 3 ITA No.1142 & 1143/Mum/2025; A.Y. 2024-25 Shri Vardhman Shashvat Trust The assessee was also granted provisional registration u/s.80G on even date for identical period. 2.1 Subsequently, assessee made application in form 10AB for grant of regular registration u/s. 12AB and 80G of the Act. It is submitted that, the Ld.CIT(E) Mumbai, issued notice on 05/10/2024 to furnish documents/explanation in relation to the activities of the trust. 2.2 Assessee complied with this recruitment by submitting various documents and evidences on 04/11/2024. The Ld.CIT(E) again issued notice on 21/12/2024 calling upon assessee to provide details regarding expenses made towards the objects of the trust along with copy of bank statement to be submitted by 24/12/2024. 2.3 The Ld.AR submitted that, assessee was granted only 3 days for collecting the documents vide notice 21/12/2024 to be furnished before the Ld.CIT(E), which could not be fulfilled. The Ld.CIT(E), without considering the request of the assessee passed the impugned order rejecting the registration u/s.12AB and 80G of the Act. The Ld.AR submitted that, an opportunity may be granted to the assessee before the Ld.CIT(E) for furnishing all the relevant documents in support of its claim. 3. It is noted that, the assessee could not provide the relevant details within the short time granted by the Ld.CIT(E), and the Ld.CIT(E) passed impugned order in violation to the principle of natural justice. In the interest of justice, we thus remit the issue back to the Ld.CIT(E) for considering the applications in the light of the evidence furnished by the assessee in accordance with law. 4 ITA No.1142 & 1143/Mum/2025; A.Y. 2024-25 Shri Vardhman Shashvat Trust Needless to say that proper opportunity of being heard must be granted to the assessee. Accordingly the grounds raised by the assessee in both the appeals stands allowed for statistical purposes. In the result the appeals filed by the assessee stands allowed for statistical purposes. Order pronounced in the open court on 28/04/2025 Sd/- Sd/- (RENU JAUHRI) (BEENA PILLAI) Accountant Member Judicial Member Mumbai: Dated: 28/04/2025 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 "