SMT AMIRTA DEVI EDUCATIONAL TRUST,THANE V. CIT (EXEMPTIONS), PUNE, PUNE

ITA 1540/MUM/2025

AI Insights

The case involves the Smt. Amirta Devi Educational Trust, which appealed against the decision of the CIT (Exemption), Pune, rejecting their application for registration under section 12A of the Income Tax Act. The primary contention was the lack of adequate opportunity provided to the trust to submit necessary documents, specifically the provisional registration order, which led to the rejection of their application. The tribunal noted the procedural shortcomings and decided to remand the case for a fresh evaluation, emphasizing the need for adherence to principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 112268 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: K.R. SUBHASH
• Assessee Lawyers: BHUPENDRA SHAH
• Keywords: Principle of natural justice
• Section: 12A; 113

Judgement Text

"IN THE INCOME-TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE MS. KAVITHA RAJAGOPAL, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1540/MUM/2025 (निर्धारण वर्ा / Assessment Year:2025-26) Smt. Amirta Devi Educational Trust Sector 2, Building D 113 404, Arcbhavan, Vasai East 401208 v/s. बिधम CIT (Exemption), Pune 322, Income Tax Office, PMT Building, Shankar Seth Road, 411037 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAUTS3645R Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee by: Shri. Bhupendra Shah रधजस्व की ओर से /Revenue by: Shri K.R. Subhash, CIT DR सुिवधई की िधरीख / Date of Hearing 16.04.2025 घोर्णध की िधरीख/Date of Pronouncement 17.04.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.]:- This appeal is filed by the assessee against the order of rejection of application for registration u/s. 12A. dated 02/12/2024 of Ld. CIT(Exemption), Pune. 2. The assessee has raised the following grounds of appeal: “1. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Pune erred in not granting sufficient opportunity to the appellant, to submit the order copy of provisional registration, thereby violating the principles of natural justice. 2. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Pune was not justified in denying the final Registration u/s 12A(1)(ac)(iii) ignoring the fact that the trust is an educational institution and undisputedly imparts education. 2 | P a g e ITA No 1540/Mum/2025 AY: 2025-26 Smt. Amirta Devi Educational Trust 3. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Pune has not provided sufficient time to submit the documents as stated in final SCN issued on 19/11/2024 with compliance date 26/11/2024 (only 7 days) thereby deprive the trust to comply the same. 4. Based on the facts and circumstances of the case, and in accordance with the law, the learned CIT (Exemptions), Pune failed to consider the documents submitted in response to the notice dated 22/07/2024, which proved the trust's educational activities, and rejected the 12A application on the technicality of not submitting the provisional registration copy.” 3. Brief facts of the case are that the assessee is an educational trust and had filed an application in Form 10AB on 26/06/2024 for registration u/s. 12A(1)(ac)(iii) of the Act. Ld. CIT(E) issued a notice on 19/11/2024 to the assessee to submit a copy of the provisional registration in Form 10AC on or before 03/12/2024. The assessee could not make compliance to this notice and accordingly, Ld. CIT(E) rejected the application for final registration solely on this ground vide order dated 10/12/2024. Aggrieved with the order of Ld. CIT(E), the assessee has filed an appeal before the Tribunal. 4. At the outset, it is noticed that there is a 25 days’ delay in filing of the appeal. It has been submitted in the application for condonation that the assessee could not file the appeal in time as he did not have a full-time accountant to look after its affairs and the persons running the trust did not have full knowledge in this regard. Considering the explanation given by the assessee, the delay of 25 days is hereby condoned. 5. Before us, Ld. AR has explained that the assessee is a small trust which runs a school. A detailed questionnaire was issued by Ld. CIT(E) on 22/07/2024, to which the assessee made part compliance by furnishing various details. However, another notice was issued on 19/11/2024, vide which a copy 3 | P a g e ITA No 1540/Mum/2025 AY: 2025-26 Smt. Amirta Devi Educational Trust of the provisional registration order was sought by Ld. CIT(E). As the time allowed was short, the assessee could not make compliance by the due date and hence Ld. CIT(E) proceeded to reject the application for registration without giving any further opportunity to the assessee. Ld. AR has also produced a copy of the provisional registration before us during the course of hearing and has requested that the matter may be remanded back to Ld. CIT(E) for fresh consideration. Ld. DR has not objected to the above said proposition. 6. We have considered the rival submissions as well as the material placed before us. In the interest of justice, we deem it appropriate to restore the matter to Ld. CIT(E) for fresh consideration after giving due opportunity to the assessee. 7. In the result, appeal is allowed for statistical purposes. Order pronounced in the open court on 17.04.2025. Sd/- Sd/- KAVITHA RAJAGOPAL RENU JAUHRI (न्यधनयक सदस्य/JUDICIAL MEMBER) (लेखधकधर सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 17.04.2025 दिव्य रमेश न ुंिग वकर/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/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. 4 | P a g e ITA No 1540/Mum/2025 AY: 2025-26 Smt. Amirta Devi Educational Trust सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "