AKHIL GUJARAT PRAJAPATI SANGH,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 211/AHD/2025

AI Insights

The case involves three different charitable trusts (C.K. Prajapath Charitable Trust, Akhil Gujarat Prajapati Sangh, and Chanchalba Dalsukhbhai Prajapati Charitable Trust) appealing against the decisions of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied them registration under section 80G(5) of the Income Tax Act, 1961. The denial was based on the trusts' failure to comply with notices requesting additional details and documents, which they did not respond to due to the notices being directed to the spam folder of their email. The Tribunal found that the trusts were not adequately aware of the notices and thus did not have a fair opportunity to respond, leading to the decision to set aside the CIT's orders and provide another opportunity for the trusts to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 42083 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice; Charitable institution
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Makarand Vasant Mahadeokar, Accountant Member C.K. Prajapath Charitable Trust Satyanarayan Bhavan, Refinery Road Gorwa, Baroda-390016 Gujarat390016 PAN: AAATC6479K & Akhil Gujarat Prajapati Sangh Satyanarayan Bhavan, Refinery Road Gorwa, Baroda-390016 Gujarat PAN: AAATA8332 & Chanchalba Dalsukhbhai Prajapati Charitable Trust Satyanarayan Bhavan, Refinery Road Gorwa, Baroda-390016 Gujarat PAN: AACTC3343E (Appellants) Vs Vs Vs CIT(Exemption), Ahmedabad CIT(Exemption), Ahmedabad CIT(Exemption), Ahmedabad (Respondents) Assessee Represented: Adjournment application filed Revenue Represented: Shri Abhay Kumar Thakur, CIT-DR Date of hearing : 26-03-2025 Date of pronouncement : 28-03-2025 ITA Nos: 210 to 212/Ahd/2025 I.T.A Nos. 210 to 212/Ahd/2025 Page No C.K. Prajapath Charitable Trust and Ors. vs. CIT(E) 2 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- These three appeals are filed by three different Assessee Trust as against separate orders all dated 21-11-2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section u/s. 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Since common issue is involved in the appeals, for the sake of convenience the same are disposed off by this common order. 2. The common Grounds of appeal raised by the assessee are as follows: 1. The Appellant Trust submitted an application for registration under Section 80G(5)(iii) of the Income Tax Act, 1961, in Form No. 10AB, before the Learned Commissioner of Income Tax (Exemptions), Ahmedabad, on 30.06.2024. 2. The Learned CIT (Exemptions) rejected the application vide order dated 21.11.2024, citing non-compliance with notices issued on 10.09.2024 and 24.10.2024, which sought additional details and documents. 3. The aforementioned notices were sent to the registered email ID of the Appellant. However, due to technical issues, the emails were directed to the SPAM folder, resulting in the Appellant's unawareness of their receipt. Consequently, the Appellant could not respond to the notices. 4. The Appellant Trust is a bona fide charitable organization, and denial of registration under Section 80G(5) would adversely affect its ability to fulfill its charitable objectives. 5. The Appellant Trust, being aggrieved by the rejection, seeks the kind and judicious intervention of the Hon'ble ITAT, Ahmedabad, for a fair resolution of the matter. I.T.A Nos. 210 to 212/Ahd/2025 Page No C.K. Prajapath Charitable Trust and Ors. vs. CIT(E) 3 3. We have perused the impugned orders passed by the Ld. CIT(E) who had given two opportunities to the respective assessee Trust. The assessee failed to comply with the above hearing notices, since the email notices were received in spam folder, therefore for non- compliance, registration u/s. 80G were denied by Ld. CIT(E). 4. Therefore in the interest of Principle of Natural Justice, we deem it fit to set aside the orders passed by the Ld. CIT(E) with a direction to give one more opportunity of hearing to the assessee by issuing physical notice to the assessee Trust for granting registration u/s. 80G and pass orders in accordance with the provisions of law. Needless to say, the assessee Trusts should cooperate by furnishing all the relevant materials before Ld. CIT(E) for granting registrations. 5. In the result, the appeals filed by the three Assessees are allowed for statistical purposes. Order pronounced in the open court on 28-03-2025 Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 28/03/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) I.T.A Nos. 210 to 212/Ahd/2025 Page No C.K. Prajapath Charitable Trust and Ors. vs. CIT(E) 4 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "