TALATIS SCOUT TRUST,ELPHINSTONE ROAD PAREL V. CIT (EXEMPTIONS), CUMBALLA HILL MTNL TE BUILDING, PEDDER ROAD

ITA 348/MUM/2025

AI Insights

M/s. Talatis Scout Trust appealed against the order of the Commissioner of Income Tax (Exemptions), which had rejected their application for registration under section 12A of the Income Tax Act, 1961. The Commissioner had found the application incomplete and noted the Assessee's failure to respond to multiple notices. The Assessee contended that they had indeed responded, but the Commissioner had not considered their compliance before rejecting the application. The tribunal, acknowledging the procedural oversight, remanded the case for a fresh decision, emphasizing the need for substantial justice and proper consideration of the Assessee's submissions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33750 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEENA JEPH; LD.
• Assessee Lawyers: PAWAN CHOUDHARY; LD
• Keywords: Set aside
• Section: 12AA; 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.348/M/2025 Assessment Year: 2024-25 M/s. Talatis Scout Trust, Building No.2A, Flat No.19, Tata Mils Co-Op Hsg Soc., Elphinstone Road, Parel, Mumbai, Maharashtra – 400 012 PAN: AADTT5076G Vs. CIT(Exemptions), Room No.601, 6th Floor, Cumballa Hill MTNL TE Building, Peddar Road, Dr. gopalrao Deshmukh marg, Mumbai Maharashtra - 400026 (Appellant) (Respondent) Present for: Assessee by : Shri Pawan Choudhary, Ld. A.R. Revenue by : Smt Neena Jeph, Ld. CIT D.R. Date of Hearing : 12 . 03 .2025 Date of Pronouncement : 25 . 03 .2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 23.11.2024, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) u/s 12AA of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2024-25. ITA No.348/M/2025 M/s. Talatis Scout Trust 2 2. In this case, the Assessee, by filing application in Form no.10AB before the Ld. Commissioner, has sought for registration u/s 12A of the Act. On verification of the same, it was found by the Ld. Commissioner that the application was incomplete and not accompanied with all the documents required for the same and therefore he issued various notices, but of no avail, as the Assessee failed to respond to any of the notices and therefore, finding no option and considering the statutory limitation to decide the application on or before 30.11.2024, the Ld. Commissioner rejected the said application. 3. The Assessee, being aggrieved, has challenged the impugned order and has claimed that the Assessee has duly filed its response/compliance dated 15.10.2024, however, the Ld. Commissioner, in haste manner and without considering the said reply/compliance, decided the application for registration u/s 12A of the Act and rejected the same. And therefore the impugned order may be set aside. 4. On the contrary, the Ld. D.R. refuted the claim of the Assessee by submitting that the Ld. Commissioner has given proper opportunities of being heard by issuing three notices in total but the Assessee did not make any compliance, as it clearly appears from ITA No.348/M/2025 M/s. Talatis Scout Trust 3 the impugned order and therefore the appeal of the Assessee is liable to be dismissed. 5. We have heard the parties and perused the material available on record. From the impugned order though it clearly appears that the Assessee has not made any response, however, the Assessee has claimed contrary that it has duly filed its reply on dated 15.10.2024 in response to the notice dated 23.09.2024. At this juncture, we are inclined not to go into the controversy whether the Assessee had filed any reply or not, however it is a fact that the Ld. Commissioner in the absence of relevant reply/submissions and/or documents, failed to decide the issue involved in the application filed by the Assessee in its right perspective and proper manner and therefore for just and proper decision of the case and substantial justice, we are inclined to set aside the impugned order and consequently remanding the instant case to the file of the Ld. Commissioner for decision afresh, however, subject to deposit of Rs.1100/- in the Revenue Department “under other heads” but within 15 days from the receipt of this order. The Assessee is directed to comply with the notices to be issued by the Ld. Commissioner. We clarify that in case of subsequent default the Assessee at all shall not be entitled for any leniency. ITA No.348/M/2025 M/s. Talatis Scout Trust 4 6. Thus, the case is remanded to the file of the Ld. Commissioner accordingly. 7. In the result, the appeal filed by the Assessee stands allowed for statistical purposes. Order pronounced in the open court on 25.03.2025. Sd/- Sd/- (PRABHASH SHANKAR) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "