CHORASI KADAVA PATIDAR SAMAJ UNNATI MANDAL PATAN,PATAN V. THE CIT(EXEMPTION), AHMEDABAD

ITA 161/AHD/2025

AI Insights

The case involves Chorasi Kadava Patidar Samaj Unnati Mandal Patan, a small trust engaged in charitable activities, which appealed against the decisions of the Commissioner of Income Tax (Exemption), Ahmedabad. The CIT(E) had rejected the trust's applications for registration under Section 12A and for approval under Section 80G of the Income Tax Act, 1961, citing non-compliance and failure to establish the genuineness of its activities. The Tribunal found that the trust, due to its lack of legal knowledge, failed to comply with procedural requirements and thus decided to set aside the CIT(E)'s orders and remand the matter for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473901 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. P. SINGH
• Assessee Lawyers: RUSHIN PATEL
• Keywords: Set aside
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. Nos. 161 & 162/Ahd/2025 (Ǔनधा[रण वष[ / Assessment Year : NA) Chorasi Kadava Patidar Samaj Unnati Mandal Patan Jyoti Bhavan, Shree Nagar Society, Gayatri Mandir Road, Patan - 384265 बनाम/ Vs. Commissioner of Income Tax (Exemption) Ahmedabad èथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AADTC1106G (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Rushin Patel, A.R. Ĥ×यथȸ कȧ ओर से/Respondent by : Shri A. P. Singh, CIT.DR Date of Hearing 18/03/2025 Date of Pronouncement 19/03/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: These appeals have been filed by the assessee against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as “CIT(E)”], rejecting the assessee’s applications for registration under Section 12A of the Income Tax Act, 1961[hereinafter referred to as “the Act”], and for approval under Section 80G of the Act. The CIT(E) rejected the application for registration under Section 12A vide order dated 13.11.2024 and consequently rejected the application for approval under Section 80G vide order dated 15.11.2024. Since the facts ITA Nos. 161 & 162/Ahd/2025 [Chorasi Kadava Patidar Samaj Unnati Mandal Patan] - 2 – and issues involved in both the appeals are interconnected, we proceed to dispose of the same by way of this common order. 2. The assessee, a small trust engaged in charitable activities, had filed an application in Form No. 10AB seeking registration under Section 12A of the Income Tax Act. The CIT(E) issued notices calling for certain details and documents to verify the genuineness of the trust’s activities. However, due to lack of compliance, the CIT(E) proceeded to reject the application on the ground that the assessee had failed to establish the genuineness of its activities, as well as compliance with statutory requirements. 3. Subsequently, the assessee also filed an application seeking approval under Section 80G, which was rejected without examination on merits, solely on the ground that registration under Section 12A is a pre-condition for approval under Section 80G. 4. Aggrieved by the orders of CIT(E), the assessee preferred these appeals raising following grounds of appeal: ITA No.161/Ahd/2025 “1 The learned CIT(E) erred in law and on facts in denying registration to the assessee trust u/s 12A, without hearing the assessee. 2. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need arise.” ITA No.162/Ahd/2025 “1 The learned CIT(E) erred in law and on facts in denying registration to the assessee trust u/s 80G, without hearing the assessee. ITA Nos. 161 & 162/Ahd/2025 [Chorasi Kadava Patidar Samaj Unnati Mandal Patan] - 3 – 2. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need arise.” 5. The learned Authorised Representative (AR) submitted that the assessee is a small trust, and due to lack of legal knowledge, it was unaware of the procedural requirements for filing details before the CIT(E). The AR pleaded that the assessee should be given another opportunity to present its case before the CIT(E) and furnish the requisite documents in support of its applications. 6. The learned Departmental Representative (DR) did not object to the restoration of the matter to the file of the CIT(E) for a fresh adjudication on merits. 7. We have considered the rival submissions and perused the material available on record. It is evident that the assessee, being a small trust, was unaware of the procedural formalities and failed to comply with the notices issued by the CIT(E). In such circumstances, in the interest of justice, we deem it appropriate to set aside both the orders of the CIT(E), including the consequential rejection of approval under Section 80G, and restore the matter to the file of the CIT(E) for fresh consideration. 8. The CIT(E) is directed to reconsider the assessee’s application for registration under Section 12A after granting the assessee a reasonable opportunity to submit the necessary details and documents. The CIT(E) is also directed to re-examine the application for approval under Section 80G, subject to the outcome of the Section 12A registration proceedings and decide the issue on merits. The assessee is also directed to cooperate in the ITA Nos. 161 & 162/Ahd/2025 [Chorasi Kadava Patidar Samaj Unnati Mandal Patan] - 4 – proceedings before the CIT(E) and furnish all necessary details within the time prescribed. 9. In view of the above, the orders of the CIT(E) are set aside, and the matter is remanded back for fresh adjudication. 10. In the result, both appeals of the assessee are allowed for statistical purposes. This Order pronounced on 19/03/2025 Sd/- Sd/- (SANJAY GARG) (MAKARAND V. MAHADEOKAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 19/03/2025 S. K. SINHA True Copy आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंͬधत आयकर आयुÈत / Concerned CIT 4. आयकर आयुÈत(अपील) / The CIT(A)- 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलȣय अͬधकरण, अहमदाबाद / ITAT, Ahmedabad "