The council approved plans to build the mosque earlier this year despite vocal opposition from some locals claiming the council was failing to protect them from terrorists, abc.net.au reported.
The Victorian Civil Administrative Tribunal (VCAT) is hearing from a group of residents who opposed the development because of social amenity and public interest factors, which they argued were planning concerns.
But the council's lawyer, Mimi Marcus, told VCAT that claims by opponents that the mosque could lead to harassment and abuse were not substantiated.
In a separate application being heard at the same time, the Australian Islamic Mission (AIM), disputed the council's conditions on how many patrons would be permitted at the mosque at one time.
The group responsible for funding the mosque also disputed the permitted operating hours.
The lawyer for the AIM, Chris Townshend, suggested 375 should be maximum capacity for the mosque.
VicRoads agreed with Mr Townshend that the figure would be suitable for feast days and Friday prayer sessions, while 150 people could visit at any other given time.