ANIMAL LOVERS CHARITABLE TRUST,JAMNAGAR V. THE CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 157/RJT/2024

AI Insights

The case involves the Animal Lovers Charitable Trust, which appealed against the rejection of its application for final registration under Section 12AB of the Income Tax Act, 1961. The Commissioner of Income-tax (Exemption) had earlier rejected the application due to non-submission of required documents and details to verify the genuineness of the trust's activities. The trust argued that it was unaware of the online proceedings and thus failed to respond to notices. The tribunal found merit in the trust's argument, noting the lack of technical knowledge as the reason for non-compliance, and remitted the case back to the Commissioner for a de novo adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717284 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2023-2024
• Appeal Filed On: 15-03-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PALLAVI; LD.
• Assessee Lawyers: AMOLI GUSANI; LD
• Keywords: Set aside; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.157/RJT/2024 Assessment Year: N.A Animal Lovers Charitable Trust C.A Govind Sonecha, “S & A Houe”, Near Golen City, 80Ft Roa, Khodiyar Colony, B/h Saru Section Police Headquarters, Jamnagar-360 510 Vs. Commissioner of Income-tax (Exemption), Ahmedabad, Room No.609, Floor-6, Aayakar Bhawan (Vejalpur), Near Sachin Tower, 100 Foot Road, Anandnagar- Prahladnagar Road, Ahmedabad-380 -015 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAJTA 1250 D (Appellant) (Respondent) Appellant by Ms. Amoli Gusani, Ld.A.R. Respondent by Smt. Pallavi, Ld.CIT- DR Date of Hearing 06/08/2025 Date of Pronouncement 12/08/2025 आदेश / O R D E R PER: DINESH MOHAN SINHA, JM: This is an appeal filed by the assessee arises against the order of the Ld. Commissioner of Income-tax(Exemption), Ahmedabad [in short “Ld. CIT(E)”] dated 21/08/2023 has rejected application fled in Form No.10AB u/s 12A(1)(ac)(iii) of the Income-tax Act, 1961. 2. Grounds of appeal raised by the assessee are as follows; “1. The rejection order is bad in law. 2. The rejection of the final registration application and cancellation of provisional registration may please be deleted, on the grounds that the Printed from counselvise.com Page | 2 ITA No. 157/Rjt/2024 Animal Lovers Charitable Trust appellant trust is genuine an on the ground that trustees oft eh trust were technically not sound and hence must be given a final opportunity to submit the required documents to prove the genuineness of the said trust. Hence the order may please be deleted. The appellant craves leave to add, amend alter or delete one or more grounds of appeal.” 3. At the outset, that the appeal filed late by 147 days. The Ld. AR of the assessee has filed an application for condonation of delay, supported by Affidavit. The application for delay is as under; “The appellant had applied for provisional registration u/s 12A in form 10AC of the Income Tax Act, 1961 which was provided to appellant on 02.01.2023. Thereby, the appellant had applied for final registration u/s 12AB of the Income Tax Act, 1961 as on 06.02.2023. Against which notices were issued by the department to provide them with documentary evidence regarding genuineness of the activities of the trust or institution and whether that other laws material for the purpose of achieving objects are complied with. As the appellant is not technically aware, the notice issued by the department through emails remained unnoticed. Hence no reply was submitted in respect of the above issued notices. Subsequently, the above mentioned order was passed by your good-self under Section 12AB(1)(b) read with Rule 17A of the Income Tax Act, 1961, rejecting the applicator for Final registration filed in Form No. 10AB of the Act and cancelling the provisional registration. Thereby on being approached by the appellant and on becoming aware about the facts of the case, we hereby file appeal under Section 253 of the Income Tax Act, 1961 which is delayed by by 136 136 days. As the order is time barred for filing Form 36 we hereby request your good-self to kindly condone the delay in filing appeal and accept Form 36 attached herewith. I also declare that the above particulars are true to the best of our knowledge and belief.” 4. During the course of argument, the Ld. AR submitted that the assessee is not having knowledge of online proceedings of the case. That the assessee could not comply with the notices. Therefore, the Ld. AR prayer for one more opportunity may kindly be given to the assessee and adjudicate on merit. Printed from counselvise.com Page | 3 ITA No. 157/Rjt/2024 Animal Lovers Charitable Trust 5. On the contrary, the Ld. DR for the revenue has no objected to the prayer of the Ld. AR , however the Ld. DR requested that the assessee must be directed to present his case before the Ld. AO, and do not seek unnecessary adjournments. 6. We have heard the submission made by the Ld. AR and the absence of the contrary fact material available on record. We noted that assessee has explained sufficient cause and therefore delay needs to be condoned. Considering the above facts and circumstances of the case, as narrated above, we are of the opinion that, in the interest of justice, the delay deserves to be condoned and to decide the appeal of assessee on merits in accordance with law. Accordingly, we condone the delay and admit the appeal of the assessee to adjudicate on merit. 7. Brief facts of the case that the appellant had filed an application for Provisional Registration u/s 12A of the Income Tax Act, 1961 as on 26- 12-2022, against which the appellant was granted Provisional Registration u/s 12A of the Income Tax Act, 1961 as on 02-01-2023. Later, the appellant had also filed application for the Final Registration u/s 12AB of the Income Tax Act, 1961 as on 06-02-2023, in respect of which notices dated 11.07.2023 and 04.08.2023 were Issued. However, as the appellant is not technically sound, the notices issued by the department via Income Tax Portal and e-mail, remained unattended and therefore no response was submitted against the same. Subsequently, the Rejection Order under Form No. 10AD under Section 12AB of the Act was passed on 21.08.2023, stating that the application for Final Registration is rejected and the Provisional Registration was also cancelled on the ground that the appellant had not filed any reply to the notice issued by the Department. Printed from counselvise.com Page | 4 ITA No. 157/Rjt/2024 Animal Lovers Charitable Trust 8. That the assessee filed an appeal against the impugned order dated 21.08.2023 before the Tribunal. 9. At the outset Ld. Counsel for the assessee submitted that during proceedings before Ld.CIT(E) the assessee could not submit certain details and documents because these details and documents were not available when the proceedings before Ld. CIT(E) was going-on. Therefore, assessee could not submit the required details and documents for registration. However, now the assessee has in its possession entire documents and details which are to be submitted before Ld.CIT(E). Therefore, the matter may be remitted back to the file of Ld.CIT(E) for de novo adjudication. 10. On the other hand, Ld. CIT-DR for the Revenue submitted that assessee was negligent in submitting the details and documents before Ld.CIT(E) despite giving lot of opportunities to the assessee. Alternatively Ld. CIT-DR also argued that if the matter is to be remitted back to the file of Ld.CIT(E) then in those circumstances, assessee should be instructed to file the amended objects of the trust and after taking into account, the amended objects of the trust. The Ld. CIT(E) may take the decision to grant registration in accordance with law. 11. We have heard both the parties and perused the materials available on record. We note that Ld.CIT(E) has denied the registration u/s 12AB of the Act mainly on the reason that assessee has failed to submit the relevant details and documents for verification of Ld.CIT(E). The Ld.CIT(E) has given ample opportunities to the assessee to submit the details and documents. However, the assessee-trust did not take care to Printed from counselvise.com Page | 5 ITA No. 157/Rjt/2024 Animal Lovers Charitable Trust submit the required details and document like activities of trust, objects of the trust and other details as required by the Ld.CIT(E). Since assessee-trust has failed to submit these details and documents before Ld.CIT(E), therefore, Ld.CIT(E) dismissed the application of assessee in Form-10AB for registration u/s 12AB of the Act stating that assessee- trust has failed to file documentary evidence to satisfy about the genuineness of the trust activities and to verify these activities whether they are in consonance with its objects. 12. The Ld. Counsel of the assessee submitted before us that the required details and documents were not available with the assessee readily when the proceedings were going on before Ld.CIT(E). However, now these details and documents are available with the assessee. The Ld. Counsel of the assessee contended that one more opportunity should be given to assessee to submit these details and documents before Ld.CIT(E). Therefore, the matter may be remitted back to the file of Ld.CIT(E) for fresh adjudication. We find that assessee could not submit the required details and documents before Ld.CIT(E) because these details and documents, which were required by the Ld.CIT(E), were not available with the assessee-trust at the time when the proceedings were going on. Now, before us Ld. Counsel stated that assessee has entire details and documents with it and which are to be submitted before Ld.CIT(E). Considering these facts we are of the view that on more opportunity should be given to assessee to plead its case before Ld.CIT(E) Therefore, we set aside the order passed by Ld.CIT(E) and remit the issue back to the file of Ld.CIT(E) for fresh adjudication in accordance with law. Needless to direct that before passing order afresh, the Ld.CIT(E) shall allow reasonable opportunity to the assessee, we also direct the assessee to be more vigilant and to make timely compliance Printed from counselvise.com Page | 6 ITA No. 157/Rjt/2024 Animal Lovers Charitable Trust of the notice issued by Ld.CIT(E). With these directions, the grounds of appeal raised by the assessee is allowed for statistical purposes. 13. In the result, this appeal of the assessee is allowed for statistical purposes. Order is pronounced on 12/08/2025 in the open court. Sd/- Sd/- (Dr. A. L. SAINI) (DINESH MOHAN SINHA) लेखा सदèय/ACCOUNTANT MEMBER ÛयाǓयक सदèय/JUDICIAL MEMBER राजकोट /Rajkot (True copy) Ǒदनांक/ Date: 12/08/2025 DKP Outsourcing Sr.P.S आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to :  अपीलाथȸ/ The Appellant  Ĥ×यथȸ/ The Respondent  आयकर आयुÈत/ CIT  आयकर आयुÈत(अपील)/ The CIT(A)  ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, राजकोट/ DR, ITAT, RAJKOT  गाड[ फाईल/ Guard File By order/आदेश से, सहायक पंजीकार आयकर अपीलȣय अͬधकरण, राजकोट Printed from counselvise.com "