GAYATRI PARIVAR TRUST,ARVALLI V. THE CIT (EXEMPTION), AHMEDABAD

ITA 549/AHD/2024

AI Insights

The case involves the Gayatri Parivar Trust appealing against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their applications for registration under Sections 12A and 80G of the Income Tax Act. The trust argued that the commissioner did not consider all facts while passing the orders and claimed they did not receive any communication regarding the hearings. The tribunal found that the trust's failure to respond to the commissioner's notices was due to inadvertence and not malafide intent, leading to the restoration of the matter for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25543 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Other Referred Cases: CIT(E) vs. Shree Tapeshwar Hanumaji Bajrang Charity Trust
• Laws Referred To: Section 12A, Section 80G, Section 12AB of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DARSI SUMAN RATBNAM
• Assessee Lawyers: KRUPA PANCHAL
• Keywords: Condonation of delay; Opportunity of being heard
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER I.T.A. Nos.968&549/Ahd/2024 (Assessment Year: N.A.) Gayatri Parivar Trust, At & PO Shamlaji, Shamlaji Bhiloda Road, Arvalli, Gujarat-383355 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AABTG1482D] (Appellant) .. (Respondent) Appellant by : Ms. Krupa Panchal, C.A. Respondent by: Dr. Darsi Suman Ratbnam, CIT-DR Date of Hearing 25.03.2025 Date of Pronouncement 27.03.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: These are appeals have been filed by the Assessee/Applicant Trust against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad under Section 12A and under Section 80G of the Act vide orders dated 16.10.2023&09.10.2023. 2. The assessee has taken the following Grounds of Appeal: ITA No. 968/Ahd/2024 “1. It is the duly of office to consider all the facts while passing the order for 12A, which is not done in our case. Due to that reason, we have applied for appeal before your honor. 2. The Ld. CIT(exemption) has passed order for rejection u/s. 12A. 3. The appellant hasn’t received any notice or communication for hearing via email, message and by post from the department. ITA Nos. 549&968/Ahd/2024 Gayatri Parivar Trust vs. CIT(E) Asst. Year –N.A. - 2– 4. We may be allowed to add or alter or modify the ground of appeal.” ITA No. 549/Ahd/2024 “1. It is the duly of office to consider all the facts while passing the order for 80G(5), which is not done in our case. Due to that reason, we have applied for appeal before your honor. 2. The Ld. CIT(exemption) has passed order for rejection u/s. 80G(5). 3. The appellant hasn’t received any notice or communication for hearing via email, message and by post from the department. 4. We may be allowed to add or alter or modify the ground of appeal.” 3. We note that both the appeals are time barred by 152 and 103 days respectively. The assessee / applicant trust filed application for condonation of delay and submitted that since the assessee did not receive the order for rejection under Section 12AB dated 09.10.2023 and since the assessee had not visibility about rejection of it’s application, it could not file the appeal within the prescribed time limit. The Counsel for the assessee submitted that there was no mala fide intention on part of the assessee / applicant trust for the delay in filing of present appeals and accordingly, in the interest of justice, the delay of filing in the present appeals may kindly be condoned. 4. On going through the facts of the instant case, in the interest of justice, and considering the reasons cited by assessee / applicant trust delay in filing of the present appeals, delay in filing of the present appeals are hereby condoned. ITA No. 968/Ahd/2024 5. The brief facts of the case are that the assessee filed application for grant of registration under Section 12AB of the Act on 13.04.2023. In ITA Nos. 549&968/Ahd/2024 Gayatri Parivar Trust vs. CIT(E) Asst. Year –N.A. - 3– response to the application filed by the applicant trust, Ld. CIT(E) issued notices dated 11.08.2023 and 15.09.2023 calling for certain information from the assessee. However, the applicant trust neither filed any submission / details in response to notices issued by Ld. CIT(E) and nor sought any adjournment. Accordingly, in absence of details furnished by the assessee / applicant trust, Ld. CIT(E) dismissed the application filed by the assessee / applicant trust with the following observations: “7. Section 12AB makes, it very clear that before granting registration under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and also he has to verify that these activities are in consonance with the objects of the trust or institution. Further, he has to ensure that other laws material for the purpose of achieving objects are complied with. …. 10. 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. 11. In view of the above, the present application filed in Form No.10AB u/s 12A(1)(ac)(iii) of the Act is rejected and provisional registration stands cancelled.” 6. Before us, the Counsel for the assessee filed an Affidavit and admitted that there was inadvertence on the part of the assessee / applicant trust and the assessee / applicant trust did not open the e-portal to check whether any notices were issued by the Ld. CIT(E). Accordingly, vide Affidavit dated 13.05.2024 the assessee / applicant trust submitted / admitted that since there was omission on it’s part in not opening the e-portal, it was not aware about the notices issued by office of CIT(E) and accordingly, the assessee / ITA Nos. 549&968/Ahd/2024 Gayatri Parivar Trust vs. CIT(E) Asst. Year –N.A. - 4– applicant trust could not comply or file response to the two notices uploaded by Ld. CIT(E) dated 11.08.2023 and 15.09.2023. However, during the course of hearing, the Counsel for the assessee submitted that if given an opportunity of being heard, the assessee / applicant trust shall furnish all necessary details and documents to the satisfaction of Ld. CIT(E) and shall promptly comply with all notices of hearing issued by Ld. CIT(E). 7. The Counsel for the assessee submitted that there was no malafide intention on part of the assessee in not complying with the notices issued by Ld. CIT(E) and in the interest of justice, the matter may be restored to the file of Ld. CIT(E) for de-novo consideration. 8. In response, Ld. D.R. placed reliance on the observations made by Ld. CIT(E) in his order dismissing the application for grant of registration under Section 12AB of the Act filed by the assessee / applicant trust. 9. On going through the facts of the instant case and the submissions of the Counsel for the assessee, in the interest of justice, the matter is hereby restored to the file of Ld. CIT(E) for de-novo consideration. However, it is directed that in case there is further non-compliance on part of the assessee to submit details / documentary evidence called for by Ld. CIT(E), then Ld. CIT(E) would be at liberty to pass appropriate orders in light of the material available on record, in accordance with law. 10. In the result, the appeal of the assessee is allowed for statistical purposes. ITA Nos. 549&968/Ahd/2024 Gayatri Parivar Trust vs. CIT(E) Asst. Year –N.A. - 5– ITA No. 549/Ahde/2024 11. This appeal relates to order passed by Ld. CIT(E) rejecting grant of registration under Section 80G of the Act. While dismissing the application of the assessee / applicant trust, Ld. CIT(E) noted that since the assessee / applicant trust did not have valid registration under Section 12A of the Act, the application for grant of approval under Section 80G of the Act is liable to be rejected since valid registration under Section 12A of the Act is a prerequisite for grant of approval under Section 80G of the Act, in light of the decision of the Hon’ble Guajrat High Court in the case of CIT(E) vs. Shree Tapeshwar Hanumaji Bajrang Charity Trust 122 taxmann.com 98 (Gujarat). 12. We note that since the appeal of the assessee with regards to grant of registration under Section 12A of the Act has been set-aside to the file of Ld. CIT(E) for de-novo consideration, accordingly, the present appeal of the assessee relating to grant of registration under Section 80G of the Act is also directed to be restored to the file of Ld. CIT(E) for de-novo consideration. Accordingly, the appeal of the assessee are allowed for statistical purposes. 13. In the combined result, both the appeals of the assessee / applicant trust are allowed for statistical purposes. This Order is pronounced in the Open Court on 27/03/2025 Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 27/03/2025 TANMAY, Sr. PS TRUE COPY ITA Nos. 549&968/Ahd/2024 Gayatri Parivar Trust vs. CIT(E) Asst. Year –N.A. - 6– 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 25.03.2025 2. Date on which the typed draft is placed before the Dictating Member 27.03.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 27.03.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 27.03.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 27.03.2025 7. Date on which the file goes to the Bench Clerk 27.03.2025 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…………………………………… "