FORAM FOUNDATION,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1139/AHD/2025

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The case involves the Foram Foundation, a trust engaged in charitable activities, which appealed against the decision of the CIT (Exemption), Ahmedabad. The CIT (E) had rejected the trust's application for approval under Section 80G(5)(iv)(B) of the Income Tax Act, 1961, due to the trust's failure to provide necessary details. The trust argued that the notices from the CIT (E) were not received by its key person, leading to non-compliance. Additionally, the trust mistakenly cited the wrong sub-clause in its application due to the complexity of the provisions. The Tribunal found merit in the trust's arguments, noting the procedural oversight and the complexity of the legal provisions, and thus set aside the CIT (E)'s order, allowing the trust another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778789 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 21-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: VIRANCH MODI
• Keywords: Condonation of delay; Set aside
• Section: 80G

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “सी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD \u0016ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0016ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं /ITA No.1139/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : N.A. Foram Foundation Office No.513, 6th Floor, Lalita Tower Station Jetalpur Road Vadodara – 390 007 बनाम/ v/s. The CIT (Exemption) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AAATF 3741 P (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Viranch Modi, CA Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 05/08/2025 घोषणा की तारीख /Date of Pronouncement: 17/10/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The captioned appeal has been preferred by the assessee-trust against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘Ld.CIT(E)’] dated 16/12/2024, rejecting the application of the assessee for approval under sub-clause(B) of clause (iv) of first proviso to sub-section (5) of Section 80G of the Income Tax, Act 1961 (hereinafter referred to as “the Act”). Printed from counselvise.com ITA No.1139/Ahd/2025 Foram Foundation vs. CIT (E) 2 2. The appeal of the assessee is time-barred by 82 days. A separate application for condonation of delay has been filed. 3. At the outset, the Ld. AR of the assessee has submitted that the Ld.CIT(E) has dismissed the application of the assessee for final approval u/s.80(G)(5)(iv)(B) of the Act, as the assessee could not furnish the necessary details as required by the Ld.CIT(E). The Ld.AR has further submitted that the notices issued by the Ld.CIT(E) did not come to the notice of the key- person of the assessee-trust and, hence, the compliances could not be made. The Ld.AR has submitted that the assessee-trust is engaged in charitable activities and that its activities are genuine. Further, the Ld.AR of the assessee has submitted that due to complexity of the provisions, the assessee had wrongly mentioned sub-clause B of clause (iv) of first proviso to section 80G(5) of the Act instead of clause (iii) of first proviso to section 80G(5) of the Act, He has further submitted that even the impugned order of the Ld.CIT(E) was not served physically and, hence, did not come to the notice of the assessee-trust. He, therefore, has submitted that the delay in filing the present appeal may be condoned and let the assessee-trust may be given an opportunity to present its cases before the Ld.CIT(E). 4. The Ld.Departmental Representative (DR), however, relied upon the findings of the Ld.CIT(E). 5. Considering the rival submissions, in our view, the interests of justice will be well-served, if the assessee is given an opportunity to present its case before the Ld.CIT(E). Therefore, the delay in filing the appeal is hereby condoned. It is also noted that due to complexity of the provisions, several instances of mentioning of wrong clause have occurred, to which, the Printed from counselvise.com ITA No.1139/Ahd/2025 Foram Foundation vs. CIT (E) 3 Tribunal has time and again directed to the Ld.CIT(E) to treat the same under the relevant/appropriate clause/section. It is, accordingly, directed that the application of the assessee pertaining to the approval u/s. 80G(5) of the Act will be read and treated to have been moved under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, irrespective of the fact that the assessee has mentioned any other clause inadvertently in the application form. The ld. CIT(E) will consider and decide the said application in accordance of law. In view of this, the impugned order of the Ld.CIT(E) is hereby set aside and the matter is restored to the file of Ld.CIT(E) for decision afresh. Needless to say, that the Ld.CIT(E) will give proper and adequate opportunity to the assessee to present its case and thereafter to decide the same in accordance with law. It is also directed that the assessee will take due care of the informing the email/notices issued by the Ld.CIT(E) and will promptly appear and furnish the necessary details as and when called for by the Ld.CIT(E). 6. With the above observations, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 17 /10/2025. Sd/- Sd/- (Makarand V. Mahadeokar) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 17/10/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Printed from counselvise.com ITA No.1139/Ahd/2025 Foram Foundation vs. CIT (E) 4 आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)- (NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 17.10. 2025 2. Date on which the typed draft is placed before the Dictating Member. : 17.10.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 17.10./2025 7. Date on which the file goes to the Bench Clerk. : 17.10.2025 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 Despatch of the Order : Printed from counselvise.com "