GRAM SEVA SAMAJ VANKAL,SURAT V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1192/AHD/2025

AI Insights

The case involves Gram Seva Samaj Vankal, an appellant, against the Commissioner of Income Tax (Exemption), Ahmedabad, as the respondent. The appellant sought approval under section 80G(5)(iii) of the Income Tax Act, 1961, which was initially rejected by the CIT(Exemptions) due to non-compliance with procedural requirements and lack of appearance or response to notices. The Tribunal found that the CIT(Exemptions) had not considered the appellant's valid registration under section 12A(1) while rejecting the application under section 80G. The Tribunal noted the appellant's unfamiliarity with income tax proceedings and electronic notice responses, which contributed to the non-compliance. Consequently, the Tribunal condoned the delay in filing the appeal and set aside the CIT(Exemptions)'s order, remanding the matter for fresh adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713163 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Other Referred Cases: Dawoodi Bohara Jamat vs. CIT, New Noble Educational Society vs. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: MEHUL K. PATEL
• Keywords: Condonation of delay; Set aside; Principle of natural justice
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.1192/Ahd/2025 (Assessment Year: NA) Gram Seva Samaj Vankal, Tal: Mangrol, At: Post Vankal, Taluka: Mangrol Dist. Surat-394430 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AABTG7309K] (Appellant) .. (Respondent) Appellant by : Shri Mehul K. Patel, A.R. Respondent by: Shri Rignesh Das, CIT DR Date of Hearing 21.07.2025 Date of Pronouncement 30.07.2025 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 21.11.2024. 2. The Assessee has taken the following grounds of appeal:- “1. That on facts, and in law, the learned CIT(Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for approval u/s 80G(5)(iii) of the Act, vide ex-parte order. 2. That on facts and in law, the application made u/s 80G(5)(iii) ought to have been granted by learned CIT(Exemption) as prayed for. 3. The appellant craves liberty to add, alter, amend any ground of appeal.” 3. The brief facts of the case are that the Commissioner (Exemptions) passed an order rejecting the assessee’s application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961 (Act) on the ground that the assessee Printed from counselvise.com ITA No. 1192/Ahd/2025 Gram Seva Samaj Vankal vs. CIT(E) Asst.Year –N.A. - 2– failed to comply with the procedural requirements. Despite repeated notices, the assessee neither submitted the requisite documents and information as mandated under Rule 11AA(2) of the Income Tax Rules nor appeared or sought adjournment. CIT(Exemptions) placed reliance on various judicial precedents, including decisions of the Hon’ble Supreme Court in Dawoodi Bohara Jamat and New Noble Educational Society, and held that in the absence of material to establish the genuineness of the institution and its activities, satisfaction as required under law could not be recorded. Consequently, the application filed in Form 10AB was rejected, and the assessee’s provisional approval under Section 80G was also cancelled. 4. The assessee has filed an application seeking condonation of delay of 115 days in filing the appeal against the order rejecting approval under section 80G(5)(iii) of the Act. The delay has been explained through an Affidavit dated 05.05.2025 filed by Shri Subhashbhai Ramjibhai Chaudhary, Trustee of the appellant Trust. It has stated in the Affidavit that the assessee Trust is unfamiliar with Income Tax proceedings and portal-related procedures, and had no prior experience in such matters. The assessee came to know about the rejection of the application only in February 2025, and thereafter immediately took steps to file the appeal. We find the explanation offered to be bona fide and supported by circumstances beyond the control of the assessee. In view of the same, and in the interest of justice, the delay of 115 days in filing the present appeal is hereby condoned. 5. On merits, we note this appeal has been preferred by the assessee against the order passed by the CIT(Exemptions) rejecting the assessee’s application for grant of registration under section 80G of the Act. The Commissioner (Exemptions) denied the registration solely on the ground that the assessee did Printed from counselvise.com ITA No. 1192/Ahd/2025 Gram Seva Samaj Vankal vs. CIT(E) Asst.Year –N.A. - 3– not cause appearance or respond to the notices issued during the course of proceedings. The assessee has submitted that the assessee did not have prior experience in handling income tax matters and was not conversant with the process of accessing or responding to notices served electronically through the departmental portal. The explanation offered by the assessee for the non- appearance appears to be bona fide and not indicative of deliberate non- compliance. It is also an undisputed fact that the assessee was granted valid registration under section 12A(1) of the Act for the period from Assessment Year 2022-23 to Assessment Year 2026-27. However, this material fact was neither referred to nor considered by the CIT(Exemptions) while rejecting the application under section 80G of the Act. The existence of a valid registration under section 12A(1) is a relevant consideration while adjudicating an application under section 80G of the Act. In view of the above, and in the interest of natural justice, we are of the opinion that the matter requires fresh adjudication. Accordingly, the order of the CIT(Exemptions) is set aside, and the issue of grant of registration under section 80G of the Act is restored to the file of the CIT(Exemptions) for de novo consideration. The CIT(Exemptions) shall afford due opportunity of hearing to the assessee and pass a reasoned order after taking into account all relevant facts and applicable legal provisions, including the fact of existing registration under section 12A(1) of the Act. 6. The appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 30/07/2025 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 30/07/2025 TANMAY, Sr. PS TRUE COPY Printed from counselvise.com ITA No. 1192/Ahd/2025 Gram Seva Samaj Vankal vs. CIT(E) Asst.Year –N.A. - 4– 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 28.07.2025(Dictated by Hon’ble Member on his dragon software) 2. Date on which the typed draft is placed before the Dictating Member 28.07.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 28.07.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 30.07.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 30.07.2025 7. Date on which the file goes to the Bench Clerk 30.07.2025 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…………………………………… Printed from counselvise.com "