DEEP EDUCATIONAL AND CULTURAL TRUST,NARMADA V. CIT(EXEMPTION), AHMEDABAD

ITA 778/AHD/2025

AI Insights

The case involves Deep Educational And Cultural Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which had rejected their application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was primarily based on the absence of a valid registration under Section 12A/12AB, which was deemed a prerequisite for approval under Section 80G. The tribunal noted that the matter concerning the trust's registration under Section 12A was already set aside for de-novo consideration by ITAT Ahmedabad. Consequently, the tribunal decided to restore the current appeal to the CIT(E) for a fresh examination in conjunction with the Section 12A registration application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653036 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Other Referred Cases: CIT(E) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHER SINGH
• Assessee Lawyers: A.K.KHANDELWAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.778/Ahd/2025 (Assessment Year: N.A.) Deep Educational And Cultural Trust Barkatpura, Sagbara Narmada, Gujarat-393025 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AACTD6483A] (Appellant) .. (Respondent) Appellant by : Shri A.K. Khandelwal, A.R. Respondent by: Shri Sher Singh, CIT DR Date of Hearing 11.06.2025 Date of Pronouncement 18.06.2025 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 18.12.2024. 2. At the outset, we observe that the appeal is time barred by 43 days. The delay of 43 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 CIT(Exemption) is not justified in rejecting the application of the appellant filed for approval u/s 80G(5)(iii) of the Act. 2. That, the Hon’ble CIT(Exemption) is not justified in rejecting the application of the appellant filed for approval u/s 80G(5) of the I.T. Act, 1961 simply on the ground that registration u/s 12A/12AB of the Act has already been rejected and no valid 12A registration available with the appellant which is held to be pre-requisite for grant of approval u/s 80G of the Act. 3. That Hon’ble CIT (Exemption) has failed to provide effective and adequate opportunity of being heard and thus violated the principles of natural justice. ITA No. 778/Ahd/2025 Deep Educational And Cultural Trust vs. CIT(E) Asst.Year –N.A. - 2– 4. 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 that assessee / applicant trust filed an application for grant of approval under Section 80G(5)(iii) of the Act, in Form No. 10AB on 28.06.2024. Ld. CIT(E) observed that on perusal of details available on record it is observed that the application filed by the assessee / applicant trust for grant of registration under Section 12A/12AB of the Act has already been rejected, vide order dated 02.09.2024. Accordingly, since the application trust does not have any valid registration under Section 12A/12AB of the Act, in view of the decision of the Hon’ble Gujarat High Court in the case of CIT(E) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust 122 taxmann.com 98, wherein it was held that grant of registration under Section 12A of the Act, is a pre-requisite for grant of approval under Section 80G of the Act, and in absence of a valid registration certificate under Section 12A of the Act, approval under Section 80G of the Act cannot be granted to the assessee / applicant trust. Accordingly, Ld. CIT(E) denied grant of registration under Section 80G(5)(iii) of the Act with the following observations: “Therefore, the appellant does not have any valid order for registration u/s. 12A / 12AB of the Act either in Form No. 10AD or in Form No. 10AC. Under similar circumstances, where the assessee did not have valid registration u/s. 12A of the Act, the Hon’ble Gujarat High Court in the case of CIT (Exemptions) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust, reported in 122 taxmann.com 98 has held that the registration u/s. 12A of the Act is a pre-requisite for grant of approval u/s 80G of Act. In absence of valid registration certificate u/s 12A of the Act, approval u/s. 80G could not be granted. 3. In view of the above, the present application filed in Form 10AB, u/s. 80G(5)(iii) of the Act, is rejected.” 5. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(E). The Counsel for the assessee submitted that the assessee / applicant trust had filed an appeal before ITAT, Ahmedabad ITA No. 778/Ahd/2025 Deep Educational And Cultural Trust vs. CIT(E) Asst.Year –N.A. - 3– against denial of registration under Section 12A of the Act. The ITAT Ahmedabad vide order dated 08.05.2025, had set-aside the matter to the file of Ld. CIT(A) for de-novo consideration in the interest of justice. Accordingly, the Counsel for the assessee submitted that the instant appeal may also be restored to the file of Ld. CIT(E), for de-novo consideration to be heard along with application for grant of registration under Section 12A of the Act. The Counsel for the assessee also placed a copy of the order passed by ITAT Ahmedabad in the assessee’s own case for our records. 6. It would be useful to reproduce the relevant extracts of the order passed by ITAT Ahmedabad in ITA No. 83/Ahd/2025 in assesse’s own case vide order dated 08.05.2025, for ready reference: “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 ITA No. 778/Ahd/2025 Deep Educational And Cultural Trust vs. CIT(E) Asst.Year –N.A. - 4– Ld. CIT(E) 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.” 7. Accordingly, looking into the facts of the assessee’s case and the contents of order passed by ITAT Ahmedabad with respect to appeal against denial of registration under Section 12A of the Act, the matter is hereby restored to the file of Ld. CIT(E) for de-novo consideration. 8. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 18/06/2025 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 18/06/2025 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 11.06.2025 2. Date on which the typed draft is placed before the Dictating Member 12.06.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 16.06.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 18.06.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 18.06.2025 7. Date on which the file goes to the Bench Clerk 18.06.2025 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…………………………………… "