DEEP EDUCATION AND CULTURAL TRUST,VADODARA V. CIT(EXEMPTION), AHMEDABAD

ITA 83/AHD/2025

AI Insights

The case involves Deep Education And Cultural Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for registration under Section 12AA of the Income Tax Act, 1961. The CIT(E) had rejected the application due to the absence of the assessee at the hearings and lack of sufficient documentary evidence to prove the genuineness of the trust's activities and compliance with legal requirements. The tribunal noted the assessee's difficulties due to their location and the trustees' limited literacy, leading to the decision to restore the matter for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314418 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHPENDRA SINGH CHAUDHARY
• Section: 12AA; 12A

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.83/Ahd/2025 (Assessment Year: N.A.) Deep Education And Cultural Trust, Barkatpura, Sagbara, Vadodara, Gujarat-393025 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AACTD6483A] (Appellant) .. (Respondent) Appellant by : None Respondent by: Shri Pushpendra Singh Chaudhary, CIT DR Date of Hearing 06.05.2025 Date of Pronouncement 08.05.2025 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 02.09.2024. 2. At the outset, we observe that the appeal is time barred by 42 days. The delay of 42 days is condoned on due consideration of facts and owing to smallness of delay causing no perceptible prejudice to other side. 3. The Assessee has taken the following grounds of appeal:- “1. On facts and circumstances of the case the Hon’ble Pr. CIT (Exemption) is not justified in rejecting the application of the appellant filed for grant of registration u/s. 12AA of the I.T. Act, 1961. 2. That, the Hon’ble Pr. CIT (Exemption) is not justified in rejecting the application of the appellant filed for grant of registration u/s 12AA of the I.T. Act, 1961 as no sufficient opportunities were provided to the appellant to furnish the details called for. 3. That, the Hon’ble Pr. CIT (Exemption) is not justified in cancelling the provisional approval already granted u/s 12A of the I.T. Act, 1961 only for the ITA No. 83/Ahd/2025 Deep Education And Cultural Trust vs. CIT(E) Asst.Year –N.A. - 2– reason that the appellant could not comply to the notices issued for furnishing of certain details / documents. 4. That, the Hon’ble CIT (exmp) is not justified in directing the assessing officer to compute the tax liability u/s 115TD of Income Tax 1961 r.w.r. 17CB of IT Rules. 5. Appellant craves leave to add, alter, amend or withdraw any ground/s of appeal on or before hearing of the appeal.” 4. The brief facts of the case are that the assesee / applicant trust filed application for registration under Section 12A of the Act. However, CIT(E) observed that in spite of issuance of notices of hearing, none appeared on behalf of the assessee / applicant trust. Accordingly, Ld. CIT(E) rejected the application filed by the assessee with the following observations: “7. As discussed above, the applicant/assessee has failed to file documentary evidences to enable me to satisfy about: i. Genuineness of the activities of the trust or institution. ii. That the activities of trust or institution are in consonance with the objects of the trust or institution. iii. That other laws material for the purpose of achieving objects are complied with. 8. In view of the above, the present application filed in Form No.10AB sub- clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961 is rejected and also your provisional registration stands cancelled.” 5. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(E). On going through the facts of the instant case, we observe that only two notices of hearing were issued to the assessee / applicant trust. Further, in the application for condonation of delay, the assessee trust has submitted that the trust is situated in a remote rural area having poor internet connectivity and further the trustees are semi-literate persons having little knowledge about online processes. Accordingly, in the interest of justice, the matter is hereby restored to the file of Ld. CIT(E) ITA No. 83/Ahd/2025 Deep Education And Cultural Trust vs. CIT(E) Asst.Year –N.A. - 3– for de-novo consideration. However, we make it clear that in case there is further non-compliance on part of the assessee / applicant trust, in response to notices issued by CIT(E), then he would be at liberty to pass appropriate orders, on the basis of material available on record, in accordance with law. 6. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 08/05/2025 Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 08/05/2025 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 1. Date of dictation 06.05.2025 2. Date on which the typed draft is placed before the Dictating Member 07.05.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 07.05.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement .05.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 08.05.2025 7. Date on which the file goes to the Bench Clerk 08.05.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… "