BABA DALIP SINGH BEDI CHARITABLE TRUST,AHMEDABAD V. THE CIT (EXEMPTION), AHMEDABAD

ITA 246/AHD/2025

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The case involves the Baba Dalip Singh Bedi Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemption), which had rejected their application for approval under section 80G(5)(i) of the Income-tax Act, 1961. The rejection was primarily due to the Trust's failure to respond to notices requesting documentation to verify the genuineness of its activities. The Tribunal found that the Trust had not been given an effective opportunity to be heard before the rejection of its application and thus decided to set aside the CIT(E)'s order and remand the case for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790409 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 30-01-2025
• Other Referred Cases: CIT vs. Dawoodi Bohra Jamat, New Noble Educational Society
• Laws Referred To: Income-tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: PARIN SHAH
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Charitable institution
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER I.T.A. No.246/Ahd/2025 (Assessment Year: NA) Baba Dalip Singh Bedi Charitable Trust, 704, Sarap Building, Navjivan Press Road, Ahmedabad-380014 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AADTB4985E] (Appellant) .. (Respondent) Appellant by : Shri Parin Shah, CA Respondent by: Shri Alpesh Parmar, CIT-DR Date of Hearing 19.11.2025 Date of Pronouncement 25.11.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 22.10.2024. 2. The Assessee has taken the following grounds of appeal:- “1. The order passed by CIT (Exemption) is bad in law and required to be quashed. 2. Ld. CIT (Exemption) erred in issuing notice to different eail id other than registered in profile section of the appellant and ultimately dismissed the same by observing non-compliance. 3. Ld. CIT (Exemption) erred in rejecting registration application u/s 80G(5) of the Act. 4. Appellant prays that appeal may be set aside for de novo adjudication by granting opportunity of being heard.” 3. The brief facts of the case are that the assessee, a charitable filed an application in Form 10AB seeking approval under section 80G(5)(i) of the Income-tax Act, 1961 (“the Act”). The said approval was sought to enable donors of the trust to claim deduction under section 80G of the Act. As part Printed from counselvise.com ITA No. 246/Ahd/2025 Baba Dalip Singh Bedi Charitable Trust vs. CIT(E) Asst.Year –NA - 2– of the approval process, the Ld. CIT(Exemptions) issued notices from time to time calling for various documents and information as prescribed under Rule 11AA(2) of the Income Tax Rules, 1962, which included trust deed, details of activities, financial statements, and other supporting documents to verify the genuineness of activities and compliance with statutory conditions. 4. According to the Ld. CIT(Exemptions), the assessee did not file any submissions in response to the notices nor sought adjournment, resulting in non-compliance with the required documentation. The Ld. CIT(Exemptions) referred to the statutory procedure prescribed under section 80G(5) of the Act read with Rule 11AA, and also placed reliance on the decisions of the Hon’ble Supreme Court in CIT vs. Dawoodi Bohra Jamat and New Noble Educational Society, holding that the approving authority is empowered to call for necessary documents to verify genuineness of activities and that failure to furnish such documents justifies denial of registration or approval. 5. Since the assessee failed to provide the required details, the Ld. CIT(Exemptions) held that the genuineness of activities and fulfillment of conditions prescribed under section 80G(5) could not be established. Accordingly, the application filed in Form No. 10AB for approval under section 80G(5)(i) was rejected and the provisional approval earlier granted was also cancelled. 6. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. 7. We have considered the material placed on record and the submissions made. It is noted that the assessee’s application for approval under section 80G(5)(i) of the Act was rejected primarily on the ground that the assessee did not furnish the documents called for by the Ld. CIT(Exemptions). It is also evident that the assessee did not receive an effective opportunity of Printed from counselvise.com ITA No. 246/Ahd/2025 Baba Dalip Singh Bedi Charitable Trust vs. CIT(E) Asst.Year –NA - 3– hearing before the rejection of its application. In the interests of justice, and keeping in view the principles laid down by the Hon’ble Supreme Court that approval proceedings require examination of documents and satisfaction regarding genuineness of activities, we are of the view that one more opportunity should be granted to the assessee to present its case and furnish the required documents. 8. Further, the delay of 30 days in filing the present appeal is condoned, considering the smallness of the delay and as no perceptible prejudice has been caused to the Revenue. Accordingly, the application for condonation of delay is allowed. 9. In the circumstances, and in the overall interest of justice, we set aside the impugned order of the Ld. CIT(Exemptions) and restore the matter to his file with a direction to grant the assessee a proper opportunity of hearing, call for the necessary documents, examine the same, and thereafter pass a speaking order in accordance with law. 10. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 25/11/2025 Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 25/11/2025 TANMAY, Sr. PS TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "