BILLIMORANA SHANTINATH BHAGWAN NA JAIN DERASAR TRUST,BILLIMORA V. CIT(EXEMPTION), AHMEDABAD

ITA 1158/SRT/2024

AI Insights

The case involves the Billimorana Shantinath Bhagwan Na Jain Derasar Trust, which appealed against the decision of the Commissioner of Income-Tax (Exemption), Ahmedabad, rejecting their application under Section 12AB of the Income Tax Act, 1961. The primary contention was the procedural fairness in the rejection of their application, as they were not given adequate opportunity to comply with the requirements for registration under Section 12A/12AB. The tribunal considered the principles of natural justice, specifically the audi alteram partem rule, which ensures that no one should be condemned unheard.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 106861 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDER SINDHU
• Assessee Lawyers: HARDIK VORA
• Keywords: Audi alteram partem
• Section: 12A

Judgement Text

"आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आ.अ.सं./ITA Nos.1158/SRT/2024 (Hybrid Hearing) Billimorana Shantinath Bhagwan Na Jain Derasar Trust, Navapura Street Bilimora, Bilimora-396321, Gujarat [PAN No. AAATB 2627 A] Vs Commissioner of Income Tax (Exemption), Ahmedabad Room No. 609, 6th Floor, Aayakar Bhawan (Vejalpur), Near Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad-380015 (Gujarat). अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Hardik Vora, A.R. राजˢ की ओर से /Revenue by Shri Ravinder Sindhu, CIT-DR अपील पंजीकरण/Appeals instituted on 07/11/2024 सुनवाई की तारीख/Date of hearing 29/01/2025 उद ्घोषणा की तारीख/Date of pronouncement 29/01/2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee-trust is directed against the order of Ld. Commissioner of Income-Tax (Exemption), Ahmedabad [for short, “Ld. CIT(E)”] dated 03/09/2024 in rejecting application under Section 12AB of Income Tax Act, 1961 (‘in short, the Act’). In this appeal, the assessee has raised main ground of appeal that the ld CIT(E) erred in rejecting the application under section 12A of the Act. 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld.AR) of the assessee submits that he has very limited prayer before the Bench, that the application for registration of Trust under Section 12A/12AB of the Act were dismissed for want of reply by Billimorana Shantinath Bhagwan Na Jain Derasar Trust ITA No. 1158/Srt/2024 (U/s 12A) 2 assessee. The ld. CIT(E) while issuing notice, allowed only two opportunities and very short period of time for making compliance, which resulted into non- submission of compliance in time. The ld. AR of the assessee submits that in majority of cases, the assessee while filing application in Form 10AB has furnished requisite information and details as required at the time of making application, yet, the assessee is still ready and willing to furnish all remaining details to prove the objects and activities of the respective assessee’s Trust. The ld. AR of the assessee submits that the appeal/matter may be restored back to the file of ld. CIT(E) with liberty to assessee to furnish requisite details. He undertakes on behalf of assessee Trust to be more vigilant in future in making timely compliance. 3. On the other hand, the learned Commissioner of Income Tax-Departmental Representative (ld. CIT-DR) for the revenue supported the order of ld CIT(E). However, on our specific question about restoring the matter back to the file of ld. CIT(E) for reconsideration of matter/appeal, he submits that the Bench may take appropriate view in accordance with law. 4. We have considered the submissions of both the parties and have gone through the order of ld. CIT(E) carefully. We find that application of assessee-trust either for registration under Section 12A/12AB of the Act was rejected for want of proper submission. The principle of audi alteram partem which envisaged that parties are eligible for fair hearing or that no one should be condemned unheard. Thus, cconsidering the prayer of ld. AR of the assessee that he undertook on behalf of assessee-trust to be more vigilant in future in making compliance, this appeal of assessee is restored back to the file Billimorana Shantinath Bhagwan Na Jain Derasar Trust ITA No. 1158/Srt/2024 (U/s 12A) 3 of ld. CIT(E) to pass the order afresh in accordance with law. Needless to direct that before deciding the application afresh, the ld. CIT(E) shall grant reasonable and fair opportunity of hearing to the assessee and further to allow to make further submission to prove the objects of assessee-trust and its activities. The assessee is also directed to file/furnish any other necessary evidence and information, if so desired. In the result, grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, this appeal of assessee is allowed for statistical purposes. Order pronounced on 29/01/2025 in open court. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) [लेखा सद˟/ACCOUNTANT MEMBER] [Ɋाियक सद˟ JUDICIAL MEMBER] सूरत / Surat Dated: 29/01/2025 *Ranjan आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to :  अपीलाथŎ/ The Appellant  ŮȑथŎ/ The Respondent  आयकर आयुƅ/ CIT  िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT  गाडŊ फाईल/ Guard File By order/आदेश से, सहायक पंजीकार आयकर अपीलीय अिधकरण, सूरत "