GYANJIVAN EDUCATION TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 129/AHD/2025

AI Insights

The case involves two separate appeals by Gyanda Education Trust and Gyanjivan Education Trust against the orders of the CIT (Exemption), Ahmedabad, which had rejected their applications for final registration under section 12A of the Income Tax Act, 1961. The trusts had initially received provisional registration but faced issues during the final registration process due to a clerical error in their application forms and subsequent non-compliance with requests for additional documentation. The trusts argued that the rejection was based on a technical mistake and that they had the necessary approvals to operate as educational institutions. The Tribunal found merit in the trusts' arguments and remanded the cases for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126841 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V NANDA KUMAR
• Assessee Lawyers: HERSH JANI
• Keywords: Principle of natural justice
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Gyanda Education Trust 28, Virnagar Society, Nava Vadaj, Ahmedabad PAN: AABTG1712E (Appellant) Vs The CIT(E), Ahmedabad (Respondent) Gyanjivan Education Trust, 28B Virnagar Society Nava Vadaj Ahmedabad-380013 PAN: AABTG1672M (Appellant) Vs The CIT(E), Ahmedabad (Respondent) Assessee by: Shri Hersh Jani, A.R. Revenue by: Shri V Nandakumar, CIT-D.R. Date of hearing : 17-04-2025 Date of pronouncement : 22-04-2025 आदेश/ORDER PER: DR. B.R.R. KUMAR, VICE PRESIDENT: These two appeals are filed against the separate orders dated 28-09-2024 passed by CIT (Exemption), Ahmedabad for assessment year N.A. ITA No. 128/Ahd/2025 Assessment Year N.A. ITA No.129/Ahd/2025 Assessment Year N.A. I.T.A Nos. 128 & 129/Ahd/2025 Gyanda Education Trust & Gyanjivan Education Trust A.Y. NA 2 2. The grounds of appeals are as under:- ITA No. 128/Ahd/2025 “1 The learned CIT (Exmp) has erred in law and on facts in rejecting the application filed in Form 10AB of the Act and also cancelling the provisional registration. 2 The learned CIT(Exmp.) has erred in law and on facts in passing a rejection order on a technical ground being a mistake at point no 18 of application Form 10AB that the Trust is not running any Educational Institute however in reality it is the converse. The Trust has all the required approvals from the concerned authorities for functioning as an Educational Institute. Hence the rejection order should be cancelled. 3 The Ld CIT(Exmp) has erred in law and facts in rejecting the Application u/s 12A inspite of the fact that the officials of the Trust being novice and ignorant about the technicalities of Email and website. Hence the order rejecting the application should be cancelled. 4 The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of appeal.” ITA No. 129/Ahd/2025 “1 The learned CIT (Exmp) has erred in law and on facts in rejecting the application filed in Form 10AB of the Act and also cancelling the provisional registration. 2 The learned CIT(Exmp.) has erred in law and on facts in passing a rejection order on a technical ground being a mistake at point no 18 of application Form 10AB that the Trust is not running any Educational Institute however in reality it is the converse. The Trust has all the required approvals from the concerned authorities for functioning as an Educational Institute. Hence the rejection order should be cancelled. 3 The Ld CIT(Exmp) has erred in law and facts in rejecting the Application u/s 12A inspite of the fact that the officials of the Trust being novice and ignorant about the technicalities of Email and website. Hence the order rejecting the application should be cancelled. 4 The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of appeal.” I.T.A Nos. 128 & 129/Ahd/2025 Gyanda Education Trust & Gyanjivan Education Trust A.Y. NA 3 3. Firstly we are taking up the appeal being ITA No. 128/Ahd/2025. The facts of the case are that the applicant Trust filed an application for registration of Trust u/s 12A of the Income Tax Act, 1961 in Form 10A and was granted a provisional registration on 10.03.2022. On completion of the provisional period the trust had again filed an application in Form 10AB for final registration of trust u/s. 12A of the Income Tax Act, 1961. After filing of the application certain requirements were raised vide letter / notices dated 02.07.2024 and 05.08.2024. The applicant trust filed its reply on 12.08.2024 along with the required details, however, at point no. 18 of its reply where it was supposed to mention “Whether the Trust/Institute runs any Education Institute / hospital etc.”, it had by mistake written – “Trust is not running any of the mentioned activity as of now”. The applicant was served with another notice dated 25.09.2024 seeking clarification and copy of permission or approval from concerned authorities for running educational institute. But the applicant trust did not comply the same. The CIT(E) rejected the application of the applicant trust vide order dated 28.09.2024. Aggrieved by the order of the CIT(E), the applicant trust filed appeal before the Tribunal. 4. The Ld. AR submitted that there is a delay of 51 days in filing the appeal which is due to the reason that the accountant of the trust left the job and the trust was not aware about the procedural part of filing the appeal. Hence, the Ld. AR requested to condone the delay in filing the present appeal. At the outset, the Ld. A.R. submitted that the accountant of the Trust had left the job and the trustees being novice and ignorant about the technicalities of Email and IT web portal ignored the said notice from the department. As a result there was inadvertent I.T.A Nos. 128 & 129/Ahd/2025 Gyanda Education Trust & Gyanjivan Education Trust A.Y. NA 4 noncompliance on the part of the trust. The Ld. AR submitted that the applicant trust will filed the correct documents, if the opportunity is given to the trust once again. Therefore, the Ld. AR submitted that the matter may be remanded to the CIT(E) for proper adjudication. The CIT-D.R. relied upon the order of the CIT(E). 5. We have heard both the parties and perused all the relevant record. The delay in filing the present appeal is condoned. The Ld. AR submitted that due to the ignorance of the trustees the requisite details were not filed within the stipulated time before the CIT(E) and the applicant trust actually runs the educational institute. This aspect was reflected in its audit report as per submissions of the Ld. AR. Therefore, in the interest of justice it will be appropriate to remand the matter to the file of the CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the evidences filed by the applicant trust. The applicant trust be given opportunity of hearing by following principles of natural justice. Thus, ITA No. 128/Ahd/2025 is partly allowed for statistical purpose. 6. As regards to ITA No. 129/Ahd/2025, the appeal is identical to the earlier appeal decided by us being ITA No. 129/Ahd/2025. Hence, the delay in filing this appeal is also condoned and the matter is remanded to the file of the CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the evidences filed by the applicant trust. The applicant trust be given opportunity of hearing by following principles of natural justice. Thus, ITA No. 129/Ahd/2025 is partly allowed for statistical purpose. I.T.A Nos. 128 & 129/Ahd/2025 Gyanda Education Trust & Gyanjivan Education Trust A.Y. NA 5 7. In the result, both the appeals of the respective appellant /applicant trusts are allowed for statistical purposes. Order pronounced in the open court on 22-04-2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE PRESIDENT Ahmedabad : Dated 22/04/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "