Smt Shantaben Mithalal Jain Charitable Trust Vs CIT (ITAT Mumbai)
Tax Department Cannot Demand a Certificate It Has Yet to Issue: ITAT Revives Trust’s 80G Application
The Mumbai ITAT set aside the CIT(E)’s order rejecting the charitable trust’s application for regular approval under Section 80G merely because it had not furnished a regular registration certificate.
The trust’s original registration proceedings under the erstwhile regime had earlier been restored by the ITAT to the CIT(E), but the consequential order was still pending. Meanwhile, after receiving provisional registration under the new regime, the trust filed Form 10AB for regular approval. Thus, the certificate demanded by the CIT(E) had not even come into existence because proceedings were pending before the same authority.
The Tribunal observed that there was no adverse finding regarding the trust’s charitable objects, genuineness of activities, utilisation of funds, accounts or substantive eligibility. Rejecting the application solely for failure to produce an unavailable certificate was therefore unjustified.
Following its ruling in Mithalal and Bharat Cricket and Sports Trust, the ITAT restored the matter to the CIT(E) for fresh adjudication on merits, after granting an effective opportunity of hearing and passing a speaking order.
List of Cases Discussed / Relied Upon
- Ananda Social & Educational Trust v CIT [2020] 114 taxmann.com 693 (SC)
- Principal CIT(E) v. Shri Nathji Goverdhan Nathji Charitable Trust [2020] 120 taxmann.com 256/274 Taxman 498/423 ITR 69 (Cal)
- CIT v. Mumbai Metropolitan Region Development Authority [2020] 115 taxmann.com 71 (Bombay)
- Goa Industrial Development Corpn. v CIT [2020] 116 taxmann.com 42/421 ITR 676/271 Taxman 58 (Bom)
- CIT (Exemptions) v. Shree Durga Mata Mandir [2020] 121 taxmann.com 31/275 Taxman 575 (Punj. & Har)
- CIT v. Divine Shiksha Samiti [2020] 121 taxmann.com 175 (MP)
FULL TEXT OF THE ORDER OF ITAT MUMBAI
