SYS FOUNDATION ,MUMBAI V. ITO EXEMPTION WARD , THANE

ITA 401/MUM/2025

AI Insights

SYF Foundation, a charitable trust focused on educational programs, appealed against the decision of the Commissioner of Income Tax (Exemptions), Pune, which had rejected their application for registration under section 80G of the Income Tax Act. The rejection was based on insufficient documentary evidence to substantiate the activities claimed by the trust. The Tribunal noted that the trust had corrected a previous error in their application for registration under section 12A, which was still pending. The Tribunal decided to remand the case back to the CIT(E) for a fresh consideration, allowing the trust another opportunity to present the required documents and arguments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361292 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAHENDRA BISHNOI
• Assessee Lawyers: VIKRANT JOSHI
• Keywords: Principle of natural justice; Charitable institution; Tangible material
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JM & MS PADMAVATHY S, AM I.T.A. No. 401/Mum/2025 (Assessment Year: 2025-26) SYF Foundation, Through Mr. Abhijit Avinash Joshi (Managing Trustee), A311 Kasturi Plaza CHSL, Manpada Road, Dombivli East, Maharashtra-421201. PAN: AAWTS3794B Vs. CIT (Exemption), 2nd Floor, Rani Mansion, Kalyan, Murbad Road, Kalyan, Maharashtra-421301 Appellant) : Respondent) Appellant /Assessee by : Shri Vikrant Joshi, CA Revenue / Respondent by : Shri Mahendra Bishnoi, CIT-DR Date of Hearing : 08.05.2025 Date of Pronouncement : 22.05.2025 O R D E R Per Padmavathy S, AM: This appeal by the assessee is against the order of the Commissioner of Income Tax (Exemptions), Pune [In short 'CIT(E)'] dated 10.12.2024. The assessee raised the following grounds of appeal: 2 ITA No. 401/Mum/2025 SYF Foundation “A GROUNDS OF APPEAL 1. The learned CIT (Exemption) Pune has erred in rejecting the application of the Appellant Trust, despite the fact that all the documents asked for were duly submitted during the course of faceless proceedings before the CIT (Exemption). 2. The appellant craves leave to add, alter, amend, and modify the aforesaid grounds of appeal at or any time before the hearing as may be advised from time to time. B RELIEF CLAIMED 1. The matter may please be remanded back to the office of the CIT (Exemption) for considering it afresh.” 2. The assessee is a charitable trust formed with the principle object of running Computer Literacy Programmes, Skill Development Programmes and Environment Education Programme in Schools and Colleges particularly in rural and semi-urban areas. The assessee got registered with Charity Commissioner under Maharashtra Public Trust, Act on 30.08.2018. The assessee has applied for permanent registration under section 12A of the Income Tax Act, 1961 (the Act) which was rejected for the reason that the assessee has mentioned a wrong section in the application. The assessee has corrected the aforesaid mistake and has filed fresh application for registration under section 12A of the Act. The said application is under process and pending with CIT(E). In the mean time the assessee has applied for registration under section 80G of the Act. The CIT(E) has rejected the application for registration under section 80G of the Act for the reason that “(i) Note on activity has not been furnished by you, Furnish activity note giving details viz dates and places of each activities carried out by your trust, details of beneficiaries, how they were identified etc. ii) You have not furnish any supporting credible evidences in respect of the activities. Kindly furnish the same. In absence of any such tangible material in respect of proof of activities being carried out it is not possible to arrive at any 3 ITA No. 401/Mum/2025 SYF Foundation conclusion about the genuineness of activities and also to ascertain as to whether the activities are in line with the objects of the trust/institution. (iii) It is seen that no credible evidence furnished in support of the activities claimed to have been carried out and it is seen that a very meager expenditure is shown on objects, the satisfaction about the genuineness of activities could not be arrived at.” 3. The assessee is in appeal before the tribunal against the order of the CIT(A). 4. We heard the parties and perused the material on record. The ld. AR submitted that the CIT(E) has rejected the application made under section 80G primarily for the reason that the documentary evidences called for have not been submitted. The ld. AR further submitted that all the relevant documents evidencing the various activities carried out by the assessee towards its object are available and prayed that one more opportunity may be granted to the assessee. We notice from the perusal of records that the assessee's application for registration under section 12A of the Act is pending with the CIT(E) (page 35 & 36 of PB). It is also notice that the assessee has collated with the evidences called for by the CIT(E) with regard to the registration under section 80G of the Act. Considering the facts peculiar in assessee's case and in the interest of natural justice and fair play, we are inclined to grant one more opportunity to the assessee to furnish the various documents called for by the CIT(E) and represent the case on merits before the CIT(E). Accordingly we remit the appeal back to the CIT(E) with a direction to consider the application made under section 80G of the Act along with the application made for registration under section 12A of the Act. The CIT(E) is further directed to call for the necessary documents as may be required in this regard and decide the case in accordance with law. The assessee is directed to submit the relevant details to support the claim for registration under section 80G of the Act and co-operate with the proceedings. It is ordered accordingly. 4 ITA No. 401/Mum/2025 SYF Foundation 5. In result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 22-05-2025. Sd/- Sd/- (ANIKESH BANERJEE) (PADMAVATHY S) Judicial Member Accountant Member *SK, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. Guard File 5. CIT BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai "