DR. C J DESAI AND JASWANTIBEN DESAI FOUNDATION,VALSAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1764/AHD/2024

AI Insights

The case involves Dr. C J Desai And Jaswantiben Desai Foundation 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. The rejection was based on the absence of a valid registration under Section 12A/12AB of the Act, which was deemed a prerequisite for approval under Section 80G. The Tribunal found that the CIT(E) had erred in fact, as the assessee already possessed a valid registration under Section 12A for the assessment years 2022-23 to 2026-27. The Tribunal's decision to remand the case for re-evaluation was based on this finding.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25539 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2024
• 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 122 taxmann.com 98
• Laws Referred To: Section 80G(5), Section 12A/12AB of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRITHVI RAJ MEENA
• Assessee Lawyers: M K PATEL
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA P. SINHA, ACCOUNTANT MEMBER I.T.A. No.1764/Ahd/2024 (Assessment Year: N.A.) Dr. C J Desai And Jaswantiben Desai Foundation, Plot No. 902, Vinayak Greens, Nr. Swaminarayan School, Malanpada, B O Baroliaya, Dharampur, Valsad- 396050 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAETD3828M] (Appellant) .. (Respondent) Appellant by : Shri M K Patel, Advocate Respondent by: Shri Prithviraj Meena, CIT DR Date of Hearing 23.12.2024 Date of Pronouncement 24.12.2024 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 28.08.2024. 2. The assessee has raised the following grounds of appeal: “1. That on facts, and in law, the learned CIT (Exemption) Ahmedabad has grievously erred in not granting sufficient and reasonable opportunity of hearing to the appellant. 2. That on facts, and in law, the learned CIT (Exemption) Ahmedabad has grievously erred in rejecting the application for approval u/s 80G(5) of the Act as appellant has not valid order for registration u/s 12A/12AB of the Act either in form 10AD or in form 10AC. 3. Your appellant craves leave to add/alter or amend any of the grounds till the appeal is finally heard and decided.” 3. The brief facts of the case are that Ld. CIT(E) dismissed the application for approval under Section 80G(5)(iii) of the Act on the ITA No. 1764/Ahd/2024 Dr. C J Desai And Jaswantiben Desai Foundation vs. CIT(E) Asst.Year –N.A. - 2– ground that the assessee’s application for registration under Section 12A/12AB of the Act has been rejected vide order dated 25.08.2024. CIT(E) held that in the case of CIT (E) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust 122 taxmann.com 98, it has held that registration under Section 12A is a pre-requisite for grant of approval under Section 80G of the Act. Therefore, in absence of valid registration certificate under Section 12A of the Act, approval under Section 80G of the Act cannot be granted to the assessee. 4. Before us, the Counsel for the assessee submitted that the Ld. CIT(E) has rejected the application for approval under Section 80G of the Act on an erroneous interpretation of facts. It was submitted that the assessee suo moto withdrew its application for grant of registration under Section 12A of the Act since this application was mistakenly filed by the assessee. The counsel for the assessee submitted that since the assessee Trust was already having registration under Section 12A for A.Y. 2022-23 to 2026-27 vide order dated 21.07.2023, the assessee therefore, filed letter before Ld. CIT(E) with a request to withdraw application for registration under Section12A in Form 10AB on 20.02.0224. on the ground that the same was filed mistakenly. It was in light of this background that Ld. CIT(E) rejected application under Section 12A vide order dated 25.08.2024. The Counsel for the assessee submitted Form 10AC as a proof to demonstrate that the assessee was already registered under Section 12A of the Act vide order dated 21.07.2023. 5. On going through the facts of the instant case, we are of the view that Ld. CIT(E) had rejected assessee’s application for ITA No. 1764/Ahd/2024 Dr. C J Desai And Jaswantiben Desai Foundation vs. CIT(E) Asst.Year –N.A. - 3– registration under Section 80G(5)(iii) of the Act on an incorrect presumption of fact that the assessee / applicant trust did not have a valid registration under Section 12A of the Act. From the facts placed on record before us, we observe that the assessee / applicant trust was having a valid registration under Section 12A of the Act for A.Ys. 2022-23 to 2026-27 vide order dated 21.07.2023. 6. In light of the above facts placed on record, the issue is set- aside to the file of Ld. CIT(E) for de-novo consideration of assessee’s application for grant of registration under Section 80G of the Act and with a direction not to disentitle the assessee / applicant trust for grant of registration on account of not having registration under Section 12A of the Act. 7. In the result, the appeal of the assessee / applicant trust is allowed for statistical purposes. This Order pronounced in Open Court on 24/12/2024 Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER (True Copy) Ahmedabad; Dated 24/12/2024 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 "