AASHRO SEVA FOUNDATION,VADODARA V. CIT (EXEMPTION), AHMEDABAD

ITA 512/AHD/2025

AI Insights

The case involves Aashro Seva Foundation, a trust engaged in various charitable activities, which appealed against the decision of the CIT (Exemption), Ahmedabad, rejecting its application for final registration under section 12AB of the Income Tax Act, 1961. The CIT (Exemption) had initially granted provisional registration but later rejected the application for final registration due to non-response from the trust to notices seeking details of its activities and accounts. The trust, unaware of the proceedings due to an administrative oversight, filed a delayed appeal. The Tribunal found merit in the trust's explanation for the delay and the non-response, considering the nature of its charitable activities and the circumstances that led to the oversight.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778817 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 06-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: SARJU MEHTA
• Keywords: Condonation of delay; Charitable institution

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0012ायपीठ “सी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD \u0016ी संजय गग\u001a, \u0012ाियक सद\u001b एवं \u0016ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं /ITA No.512/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : Not Applicable Aashro Seva Foundation B-315 Shreeji Flats Vadsar Road Vadsar Vadodara – 390 010 (Gujarat) बनाम/ v/s. The CIT (Exemtpion) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AAITA 1508 M (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Sarju Mehta, A.R. Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 04/08/2025 घोषणा की तारीख /Date of Pronouncement: 15/10/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee-trust against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’] dated 05/03/2023. 2. The assessee, in this appeal, is aggrieved by the action of the Ld.CIT(E) in rejecting the application of the assessee for final registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). Printed from counselvise.com ITA No.512/Ahd/2025 Aashro Seva Foundation vs. CIT (Exemption) 2 3. The appeal of the assessee is time-barred by 645 days. A separate application for condonation of delay has been filed. 4. We have heard the rival contentions of the Ld.Representatives of the parties and gone through the record. 5. The brief facts of the case are that the assessee-trust is engaged in charitable activities, like supporting to the underprivileged community, educational support, blood donation camps, ambulance services and other social welfare activities for the underprivileged including group marriages and food distribution, etc. The assessee-trust was granted provisional registration in Form 10AC for the period from Assessment Year (AY) 2022-23 to AY 2024-25. The assessee-trust, thereafter, applied for final registration u/s.12AB of the Act on 07/09/2022. The Ld.CIT(E) issued notices dated 10/12/2022 and 04/01/2023 to the assessee-trust to furnish the requisite details and documents relating to the charitable activities of the assessee and accounts, etc. However, since there was no response from the assessee-trust, therefore, the ld.CIT(E) vide impugned order dated 05/03/2023 rejected the application of the assessee for final registration and in consequence thereto the provisional registration granted to the assessee also stood withdrawn from 05/03/2023. The assessee-trust, however, was not aware of the aforesaid issuance of notices and final order passed by the Ld.CIT(E). It has been explained in the application for condonation of delay that the email sent by the Ld.CIT(E) did not come to the notice of the key-person of the assessee- trust and, therefore, the case of the assessee remained unrepresented before the Ld.CIT(E). It has been further pleaded that the assessee-trust came to know of the impugned order of the ld.CIT(E) only when the assessee was not Printed from counselvise.com ITA No.512/Ahd/2025 Aashro Seva Foundation vs. CIT (Exemption) 3 granted the benefit of the provisional registration and was informed that the provisional registration granted to the assessee stood withdrawn. It has been pleaded that, in fact, the provisional registration of the assessee-trust was valid upto AY 2024-25. However, the Tax Consultant of the assessee while making application for final registration u/s.12AB of the Act of another trust, namely, Swarnam Charitable Trust on 07/09/2022 wrongly uploaded the application/documents mentioning the name and details of the assessee- trust and thereafter the Commissioner proceeded to examine the case of the assessee-trust and sought additional details, whereas, the assessee-trust was not aware of the aforesaid proceedings. An affidavit of the trustee, in this respect, has also been filed. 6. The Ld. Counsel for the assessee has submitted that the non- representation of the assessee and non-furnishing of required details before the Ld.CIT(E) was not intentional. He has submitted that the matter may be restored to the file of the Ld.CIT(E) to reconsider the registration of application of the assessee. 7. The Ld.DR, on the other hand, has relied upon the findings of the Ld.CIT(E). 8. We have considered the rival submissions. Considering the nature of charitable activities of the assessee which are further shown by submitting the details of activities and photographs, it appears that the assessee-trust is engaged in charitable activities for upliftment of underprivileged. The assessee-trust has duly explained the reasons for which it could not respond to the notices issued by the Ld.CIT(E) for final registration. Considering the Printed from counselvise.com ITA No.512/Ahd/2025 Aashro Seva Foundation vs. CIT (Exemption) 4 overall facts and circumstances of the case, in our view, the interests of justice will be well-served, if the assessee is given an opportunity to present its case before the Ld.CIT(E). In view of this, the delay in filing the appeal is hereby condoned subject to deposit of costs of Rs.5,000/- to the Prime Minister’s National Relief Fund. Subject to the above condition, the impugned order of the Ld.CIT(E) is restored to the file of Ld.CIT(E) for decision afresh. In the meantime, the provisional registration granted to the assessee will continue to hold and will be subject to final decision of the Ld.CIT(E) on this restored application. The assessee will furnish the evidence of deposit of the costs of Rs.5,000/- into Prime Minister’s National Relief Fund, before the Ld.CIT(E) and thereafter the ld.CIT(E) will proceed to decide the application of the assessee afresh in accordance with law, after giving proper and adequate opportunity to the assessee-trust to present its case and furnish the necessary details. 9. With the above observation, the appeal of the assessee-trust is treated as allowed for statistical purposes. Order pronounced in the Open Court on 15 /10/2025. Sd/- Sd/- (Makarand V. Mahadeokar) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 15/10/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Printed from counselvise.com ITA No.512/Ahd/2025 Aashro Seva Foundation vs. CIT (Exemption) 5 आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(E)- Ahmedabad-380 015 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 14.10.2025 2. Date on which the typed draft is placed before the Dictating Member. : 14.10.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 15.10.25 7. Date on which the file goes to the Bench Clerk. : 15.10.25 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "