SIMPLE VEDAS FONDATION,MUMBAI V. COMMISSIONER OF INCOME TEAX (EXEMPTION), MUMBAI

ITA 4914/MUM/2024

AI Insights

The case involves Simple Vedas Foundation, which appealed against the decisions of the CIT (Exemptions) denying them registration under section 12AB and exemption under section 80G of the Income-tax Act, 1961. The tribunal found that the appellant was not given sufficient time to submit the required details for the applications, leading to the initial rejections. The tribunal decided to remit the matter back to the CIT (Exemptions) for a fresh consideration, allowing the appellant to provide the necessary documentation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 37989 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: . KISHOR DHULE
• Assessee Lawyers: BHARAT KUMAR
• Section: 11; 10; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI BEFORE SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) AND SHRI OMKARESHWAR CHIDARA (ACCOUNTANT MEMBER) ITA Nos. 4913 & 4914/MUM/2024 Assessment Year: 2024-25 Simple Vedas Foundation, 2nd floor, Plot No. 133/134, Chandramani Apartment Opp Saraswat Bank Matunga Central, Matunga S.O. Mumbai-400019. Vs. CIT (Exemptions), Room No. 601, 6th floor, Cumballa Hill MTNL Te Building, Pedder Road, Dr Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai-400026. PAN NO. ABFTS 3336 K Appellant Respondent Assessee by : Mr. Bharat Kumar Revenue by : Mr. Dr. Kishor Dhule, CIT-DR Date of Hearing : 23/12/2024 Date of pronouncement : 30/12/2024 ORDER PER OMKARESHWAR CHIDARA, AM These appeals by the assessee are directed against two separate orders both dated 01.07.2024 and 26.07.2024 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai [in short ‘the Ld. CIT(E)’]. 2. The Ld. AO has No. 4913/Mum/2024 and ITA No. 4914/Mum/2024. The grievance of the appellant trust is that it was denied the registration sought for u/s 12AB and denied the 3. ITA No. 4913/Mum/2024 deals with rejection of application filed by the appellant for 80G exemption and ITA No. 4914/Mum/2024 deals with rejection of registration sought u/s 12AB of the Income-tax Act, 1961 (in short ‘the Act’). 4. In the appeal ITA No. 4913/Mum/2024, the appeal filed the following ground: On the facts and in the circumstances of the case and in law, the Ld. CIT(E) erred in rejecting application filed for 80G exemption) 5. The Ld. CIT(Exemption) has issued a letter to the appellant with regard to proceedings u/s 80G(5)(iii) stating that the received by your trust cannot in view of same why the application in form No. 10AB should not be rejected. The Ld. CIT(Exemption) has also requested the appellant to filed documentary evidence relating to the acti carried out and details of expenses incurred thereby. The appellant trust was also requested to provide the details of donations received from Financial Year (FY) 2022 documentary evidences, bank statement requested to file all these details on 24.07.2024 failing which it will Simple Vedas Foundation ITA Nos. 4913 & 4914/MUM/2024 has stated that the assessee filed two No. 4913/Mum/2024 and ITA No. 4914/Mum/2024. The grievance of the appellant trust is that it was denied the registration sought denied the 80G exemption. ITA No. 4913/Mum/2024 deals with rejection of application e appellant for 80G exemption and ITA No. 4914/Mum/2024 deals with rejection of registration sought u/s tax Act, 1961 (in short ‘the Act’). In the appeal ITA No. 4913/Mum/2024, the appeal filed the On the facts and in the circumstances of the case and in law, the Ld. CIT(E) erred in rejecting application filed for 80G exemption) The Ld. CIT(Exemption) has issued a letter to the appellant with regard to proceedings u/s 80G(5)(iii) stating that the received by your trust cannot be applied beyond Indian in view of same why the application in form No. 10AB should not be rejected. The Ld. CIT(Exemption) has also requested the appellant to filed documentary evidence relating to the acti carried out and details of expenses incurred thereby. The appellant trust was also requested to provide the details of donations received from Financial Year (FY) 2022-23 and 2023 documentary evidences, bank statement. The appell requested to file all these details on 24.07.2024 failing which it will Simple Vedas Foundation 2 ITA Nos. 4913 & 4914/MUM/2024 assessee filed two appeal ITA No. 4913/Mum/2024 and ITA No. 4914/Mum/2024. The grievance of the appellant trust is that it was denied the registration sought ITA No. 4913/Mum/2024 deals with rejection of application e appellant for 80G exemption and ITA No. 4914/Mum/2024 deals with rejection of registration sought u/s tax Act, 1961 (in short ‘the Act’). In the appeal ITA No. 4913/Mum/2024, the appeal filed the On the facts and in the circumstances of the case and in law, the Ld. CIT(E) erred in rejecting application filed for 80G exemption) The Ld. CIT(Exemption) has issued a letter to the appellant with regard to proceedings u/s 80G(5)(iii) stating that the funds be applied beyond Indian shores and in view of same why the application in form No. 10AB should not be rejected. The Ld. CIT(Exemption) has also requested the appellant to filed documentary evidence relating to the activities already carried out and details of expenses incurred thereby. The appellant trust was also requested to provide the details of donations received 23 and 2023-24 and with appellant trust was requested to file all these details on 24.07.2024 failing which it will be deemed that there is no objection for proposed rejection of application u/s 80G. 5.1 Since the required details as mentioned above were not submitted before the Ld. CI stating as follows: The appellant has also applied for registration u/s 12AB of the Act vide Form 10AB u/s 12A(1)(ac)(iii) of the Act and same was rejected vide order dated 26.07.2024. The provision of section 80G(5)(i) of the Act stipulates that the provision of this section is only available for institution or fund for which section 11 clause 23(aa) or clause 23(c) of section 10 of the Act applies. The appellant fails to fulfill any of the above criteria in view o of its application for registration u/s 12AB of the Act. Thus, its application for approval u/s 80G of the Act becomes untenable and hence rejected. 6. Aggrieved by the above order, the appellant trust filed appeal with the grounds of appeal m proceedings before ITAT, the Ld. AR of the appellant has stated that the time given to submit the details was very short and hence could not submit the same. It was also submitted before the ITAT that all the details would be furnished before the Ld. CIT(Exemption) and an opportunity may be given. The Ld. Departmental Representative (DR) did not controvert the submission of the appellant. Simple Vedas Foundation ITA Nos. 4913 & 4914/MUM/2024 be deemed that there is no objection for proposed rejection of Since the required details as mentioned above were not submitted before the Ld. CIT(Exemption), an order was passed The appellant has also applied for registration u/s 12AB of the Act vide Form 10AB u/s 12A(1)(ac)(iii) of the Act and same was rejected vide order dated 26.07.2024. The provision of section of the Act stipulates that the provision of this section is only available for institution or fund for which section 11 clause 23(aa) or clause 23(c) of section 10 of the Act applies. The appellant fails to fulfill any of the above criteria in view o of its application for registration u/s 12AB of the Act. Thus, its application for approval u/s 80G of the Act becomes untenable and Aggrieved by the above order, the appellant trust filed appeal with the grounds of appeal mentioned above. During the appeal proceedings before ITAT, the Ld. AR of the appellant has stated that the time given to submit the details was very short and hence could not submit the same. It was also submitted before the ITAT that all be furnished before the Ld. CIT(Exemption) and an opportunity may be given. The Ld. Departmental Representative (DR) did not controvert the submission of the appellant. Simple Vedas Foundation 3 ITA Nos. 4913 & 4914/MUM/2024 be deemed that there is no objection for proposed rejection of Since the required details as mentioned above were not T(Exemption), an order was passed The appellant has also applied for registration u/s 12AB of the Act vide Form 10AB u/s 12A(1)(ac)(iii) of the Act and same was rejected vide order dated 26.07.2024. The provision of section of the Act stipulates that the provision of this section is only available for institution or fund for which section 11/12 or clause 23(aa) or clause 23(c) of section 10 of the Act applies. The appellant fails to fulfill any of the above criteria in view of rejection of its application for registration u/s 12AB of the Act. Thus, its application for approval u/s 80G of the Act becomes untenable and Aggrieved by the above order, the appellant trust filed appeal entioned above. During the appeal proceedings before ITAT, the Ld. AR of the appellant has stated that the time given to submit the details was very short and hence could not submit the same. It was also submitted before the ITAT that all be furnished before the Ld. CIT(Exemption) and an opportunity may be given. The Ld. Departmental Representative (DR) did not controvert the submission of the appellant. 7. After hearing both sides it is decided to give the appellant trust to file all the details which were required by the Ld. CIT(Exemption). The Ld. CIT into consideration all the details submitted by the appellant trust and pass an order afresh. file of Ld. CIT(E). 7.1 The appeal of assessee is allowed for statistical purposes. ITA No. 4914/Mum/2024 8. The Ld. CIT(Exemption) rejected the appellant trust u/s 12AB of the Act CIT(Exemption) page 4 were issued to the appellant trust reques details/explanation along with documentary evidences relating to application of the fund clause of the trust deed evidence of activities carried out and the details of donations received in financial year 2022 documentary evidences CIT(Exemption) vide hi requested to file all these information within a week and in response to the same the appellant trust could not submit the relevant information and requested for an adjournment till 10.08.2024. From para 4 of th Simple Vedas Foundation ITA Nos. 4913 & 4914/MUM/2024 After hearing both sides it is decided to give an st to file all the details which were required by the Ld. CIT(Exemption). The Ld. CIT (Exemptions) is directed to take into consideration all the details submitted by the appellant trust and pass an order afresh. Accordingly, the issue is remitted to the The appeal of assessee is allowed for statistical purposes. ITA No. 4914/Mum/2024 The Ld. CIT(Exemption) rejected the Registration appellant trust u/s 12AB of the Act. From the order of the Ld. CIT(Exemption) page 4 para 3 it is observed that certain notices were issued to the appellant trust requesting them to submit the explanation along with documentary evidences relating to application of the funds outside India as mentioned in the object st deed. The appellant Trust was requested to file of activities carried out and the details of donations received in financial year 2022-23 and 2023-24 documentary evidences. This notice was issued by the Ld. CIT(Exemption) vide his letter 20.07.2024. The appellant trust was requested to file all these information within a week and in response to the same the appellant trust could not submit the relevant information and requested for an adjournment till 10.08.2024. From para 4 of the above said order of the Ld. Simple Vedas Foundation 4 ITA Nos. 4913 & 4914/MUM/2024 an opportunity to st to file all the details which were required by the is directed to take into consideration all the details submitted by the appellant trust Accordingly, the issue is remitted to the The appeal of assessee is allowed for statistical purposes. Registration sought by the the order of the Ld. para 3 it is observed that certain notices ting them to submit the explanation along with documentary evidences relating to outside India as mentioned in the object The appellant Trust was requested to file of activities carried out and the details of donations 24 with necessary . This notice was issued by the Ld. s letter 20.07.2024. The appellant trust was requested to file all these information within a week and in response to the same the appellant trust could not submit the relevant information and requested for an adjournment till e above said order of the Ld. CIT(Exemption), it is observed that the statutory limitation to decide on the application is rejected by stating that the conclusion about the whether all the objects were complied with as per law. In absence of necessary compliance by the appellant within the stipulated time, the Ld. CIT(Exemption) has stated that he is unable to come to the conclusio Hence, the application seeking registration u/s 12AB was rejected. 9. Aggrieved by the order of the Ld. CIT(Exemption), the appellant filed an appeal before the ITAT. Before the ITAT, the Ld. AR of the appellant has stated that the time given to submit all the require details is quite short and the he is entitled for registration u/s 12AB and 80G of the Act. It was submitted that during the hearing proceedings before the ITAT, th Ld. AR of the appellant has stated that if an opportunity the required details would be an opportunity may be given to file all the required details before the Ld. CIT(Exemption). After hearing the sub appellant Trust and perusing the order of the Ld. CIT(Exemption) it is decided that an effective opportunity appellant trust with reasonable time to submit all the required details. Hence, the Ld. CIT(Exemption) is directed to take all the required details as submitted by the appellant trust and pass a Simple Vedas Foundation ITA Nos. 4913 & 4914/MUM/2024 it is observed that the statutory limitation to decide is 31.07.2024. The request of adjournment was rejected by stating that the above details are required to come to a conclusion about the genuineness of the Trust and objects were complied with as per law. In absence of necessary compliance by the appellant within the stipulated time, the Ld. CIT(Exemption) has stated that he is unable conclusion about the genuineness of the trust. Hence, the application seeking registration u/s 12AB was rejected. Aggrieved by the order of the Ld. CIT(Exemption), the appellant filed an appeal before the ITAT. Before the ITAT, the Ld. AR of the tated that the time given to submit all the require details is quite short and the Trust is genuine in all represents and he is entitled for registration u/s 12AB and 80G of the Act. It was submitted that during the hearing proceedings before the ITAT, th Ld. AR of the appellant has stated that if an opportunity the required details would be submitted. Hence, it is an opportunity may be given to file all the required details before the Ld. CIT(Exemption). After hearing the submission of the and perusing the order of the Ld. CIT(Exemption) it is decided that an effective opportunity was not appellant trust with reasonable time to submit all the required details. Hence, the Ld. CIT(Exemption) is directed to take all the required details as submitted by the appellant trust and pass a Simple Vedas Foundation 5 ITA Nos. 4913 & 4914/MUM/2024 it is observed that the statutory limitation to decide 31.07.2024. The request of adjournment was details are required to come to a and to find out objects were complied with as per law. In the absence of necessary compliance by the appellant within the stipulated time, the Ld. CIT(Exemption) has stated that he is unable about the genuineness of the trust. Hence, the application seeking registration u/s 12AB was rejected. Aggrieved by the order of the Ld. CIT(Exemption), the appellant filed an appeal before the ITAT. Before the ITAT, the Ld. AR of the tated that the time given to submit all the required is genuine in all represents and he is entitled for registration u/s 12AB and 80G of the Act. It was submitted that during the hearing proceedings before the ITAT, the Ld. AR of the appellant has stated that if an opportunity is given, all is requested that an opportunity may be given to file all the required details before mission of the and perusing the order of the Ld. CIT(Exemption) it was not given to the appellant trust with reasonable time to submit all the required details. Hence, the Ld. CIT(Exemption) is directed to take all the required details as submitted by the appellant trust and pass a fresh order accordingly. of Ld. CIT(E). 10. Both the above appeal are allowed for statistical purposes. Order pronounced in the open Court on 30 Sd/- (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 30/12/2024 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Simple Vedas Foundation ITA Nos. 4913 & 4914/MUM/2024 fresh order accordingly. Accordingly, the issue is remitted to the file Both the above appeals in ITA No. 4913 and 4914/Mum/2024 are allowed for statistical purposes. nounced in the open Court on 30/12/2024. Sd/ RAHUL CHAUDHARY) (OMKARESHWAR CHIDARA JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Simple Vedas Foundation 6 ITA Nos. 4913 & 4914/MUM/2024 is remitted to the file in ITA No. 4913 and 4914/Mum/2024 /12/2024. Sd/- OMKARESHWAR CHIDARA) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "