EKTA CHARITABLE TRUST,BANASKANTHA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 857/AHD/2025

AI Insights

The case involves Ekta Charitable Trust, which appealed against the orders of the CIT(Exemption), Ahmedabad, rejecting its applications for final/regular registration under sections 12A and 80G of the Income Tax Act, 1961. The Trust argued that the orders were passed ex parte without their knowledge, as they had not received any intimation from the Centralized Processing Center (CPC). The Trust's counsel highlighted the administrative constraints and financial limitations that prevented regular monitoring of communications and compliance with the show cause notice, leading to the ex parte orders. The Tribunal found merit in the Trust's arguments and decided to set aside the CIT(E)'s orders and remand the matter for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652617 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2025
• 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: RIGNESH DAS
• Assessee Lawyers: VARISHUSEN MONIN
• Keywords: Set aside; Charitable institution
• Section: 12A; 80G

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘C’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD ] ] BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.857 AND 858/Ahd/2025 Assessment Year : - Ekta Charitable Trust At & Post-Velavapura Tal-Deesa Dist. Banaskantha Gujarat. PAN : AAATE 8950 B Vs The CIT(Exemption) Vejalpur Ahmedabad. (Applicant) (Responent) Assessee by : Shri Varishusen Monin, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई क तारीख/Date of Hearing : 04/06/2025 घोषणा क तारीख /Date of Pronouncement: 16/06/2025 आदेश आदेश आदेश आदेश/O R D E R Per Sanjay Garg, Judicial Member The captioned appeals have been preferred by the assessee against separate orders passed by the Ld.Commissioner of Income- Tax (Exemption), Ahmedabad [hereinafter referred to as “ld.CIT(E)]. 2. ITA No.857/Ahd/2025 is against the order of the ld.CIT(E) dated 24.8.2023 rejecting the application of the assessee for final/regular registration under section 12A of the Income Tax Act, 1961 (for short “the Act”) whereas the ITAT No.858/Ahd/2025 is against the order of the ld.CIT(E) dated 28.8.2023 rejecting the application of the assessee for final/regular registration under section 80G of the Act. ITA No.857 and 858/Ahd/2025 2 3. At the outset, the ld.counsel for the assessee, inviting our attention to the impugned orders of the ld.CIT(E) has submitted that both the impugned orders have been passed ex parte of the assessee. He submitted that the assessee was not aware about the rejection of applications for registration as it has not received any intimation from the CPC. He further submitted that assessee-trust is a non-profit organization engaged in welfare activities and depended upon voluntary contribution. That due to administrative constrains, financial limitations and lack of professional staff dedicated to the tax matters, it could not regularly monitor email communications and track e-proceedings through e-portal of the Department, due to which the show cause notice issued to the assessee remained non-complied which resulted into passing of the impugned ex parte order, rejecting the applications of the assessee for regular registration. Coupled with these facts, the consultants engaged by the assessee earlier, also did not appraise or update the pending income tax matters. It was only when the assessee-trust engaged a new consultant, it came to know about the pendency of the appeal and appraised about the necessity of taking immediate follow up action. 4. The ld.counsel for the assessee submitted that the assessee may be given an opportunity to present its case, since the assessee has a valid and strong case, as the assessee has already been granted provisional approval/registration, and there was no reason for non- granting of regular/final approval/registration. 5. The ld.DR, on the other hand, relied on the order of the ld.CIT(E). 6. Considering the above submissions of the assessee, in our view, interests of justice will be well served, if the assessee is given an opportunity to present its case before the ld.CIT(E). Accordingly, we ITA No.857 and 858/Ahd/2025 3 condone the impugned delay in filing the appeal before the Tribunal, and set aside the orders of the ld.CIT(E) and restore to the file of the ld.CIT(E) for decision afresh on the applications of the assessee, after providing due opportunity of hearing to the assessee. The assessee is also directed cooperate with the proceedings and furnish necessary documents/evidences as may be required during the proceedings. 7. In the result, both the appeals of the assessee stand allowed for statistical. Order pronounced on 16th June, 2025. Sd/- Sd/- (Annapurna Gupta) Accountant Member (Sanjay Garg) Judicial Member Ahmedabad,dated 16/06/2025 "