INDUS ALUMNI ASSOCIATION,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2128/AHD/2024

AI Insights

The case involves the Indus Alumni Association, a public charitable trust, which appealed against the rejection of its application for approval under section 80G(5)(iii) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemptions), Ahmedabad. The initial rejection was based on the absence of a valid registration under section 12A/12AB or section 10(23C) of the Act. However, subsequent to the rejection, the Appellate Tribunal set aside the earlier order of rejection, and the CIT(Exemptions) granted the necessary registration. The Tribunal found that the CIT(Exemptions) had not adjudicated the application on merits but solely on procedural grounds, which necessitated a remand for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312503 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Other Referred Cases: ITA No.916/Ahd/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADJOURNMENT APPLICATION
• Assessee Lawyers: S.N. DIVATIA
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Competent authority; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘D’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD ] BEFORE S/SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER AND MAKARAND V.MAHADEOKAR, ACCOUNTANT MEMBER ITA No.2128/Ahd/2024 Asstt.Year : - Indus Alumni Association Rancharda Via Thaltej Shila Road Ahmedabad 382 115 PAN : AACTI 0130 M Vs CIT(Exemption) Vejlapur, Ahmedabad. (Applicant) (Responent) Assessee by : Shri S.N. Divatia, AR and Shri Samir Vora Revenue by : Adjournment Application सुनवाई क तारीख/Date of Hearing : 30/04/2025 घोषणा क तारीख /Date of Pronouncement: 01/05/2025 आदेश आदेश आदेश आदेश/O R D E R PER MAKARAND V.MAHADEOKAR, AM: This appeal by the assessee is directed against the order dated 03.12.2024 passed by the Commissioner of Income Tax (Exemptions), Ahmedabad [hereinafter referred to as “CIT(E)”], rejecting the assessee’s application in Form No. 10AB filed under clause (iii) of the first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961. Facts of the Case 2. The brief facts as stated by the assessee in the statement are such that the assessee is a public charitable trust constituted ITA No.2128/Ahd/2024 2 by a Memorandum of Association and is also registered under the Gujarat Public Trust Act, 1950 at registration No.F/21664/Ahmedabad. The trust commenced its charitable activities from 06.01.2022 and accordingly, it was required to seek registration under section 12AB of the Act. The assessee was granted provisional registration under sub-clause (vi) of clause (ac) of section 12A(1) vide Form 10AC dated 14.03.2022, covering A.Y. 2022–23 to A.Y. 2024–25. Thereafter, the assessee filed an application in Form No. 10AB on 23.09.2023 seeking approval under section 80G(5)(iii). 3. The CIT(E), while processing the application, issued a notice dated 05.10.2024 requiring the assessee to furnish relevant details and documents. The assessee submitted its response on 26.11.2024 and 28.11.2024. However, without examining the submissions on merits, the CIT(E) rejected the application vide order dated 03.12.2024 on the ground that the assessee had failed to prove that it held a valid registration under section 12A/12AB or section 10(23C) of the Act. 4. Aggrieved by the said rejection, the assessee has preferred the present appeal before us raising multiple grounds as detailed below - 1.1 The order passed by U/s.80G(5)(iii) on 03.12.2024 by CIT(Exem), Ahmedabad rejecting the application for approval in absence of registration u/s 12AB is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(Exem), has grievously erred in law and or on facts in not appreciating that at the relevant time, the appellant trust was rejected registration but while passing the impugned order, the said ITA No.2128/Ahd/2024 3 order of rejection was set aside by Appellate Tribunal vide its order dtd. 04.11.2024 in ITA No.916/Ahd/2024. 3.1 The Id. CIT(Exem), has grievously erred in law and or on facts in rejecting the application for approval u/s 80G(5)(iii). 3.2 That the in the facts and circumstances of the Id. CIT(Exem), ought not to have rejected the application for approval u/s 80G(5)(iii). It is, therefore, prayed that the order of rejection of the application for approval u/s 80G(5)(iii) by the CIT(Exem), may kindly be quashed and directed to allow the said approval. 5. During the course of hearing, the learned Authorised Representative for the assessee placed on record a copy of the order passed by the CIT(Exemption), Ahmedabad dated 08.04.2025, granting registration under section 12AB(1)(b) vide Unique Registration Number AACTI0130M24AD01, effective for the period A.Y. 2022–23 to A.Y. 2026–27. A copy of the registration order along with its annexures was furnished and taken on record. It was pointed out that this registration was granted pursuant to the directions issued by the Coordinate Bench in the assessee’s own case in ITA No. 916/Ahd/2024 dated 04.11.2024. 6. On the other hand, the learned Departmental Representative sought adjournment. However, in view of the fact that the issue is purely procedural and the record now evidences that the assessee holds valid registration under section 12AB(1)(b), which is a prerequisite for approval under section 80G(5), we are of the considered opinion that the adjournment application does not merit acceptance and is accordingly rejected. ITA No.2128/Ahd/2024 4 7. It is evident from the impugned order that the CIT(E) had not adjudicated the application on merits but rejected it solely on the ground that the assessee did not possess registration under section 12AB. Now that such registration stands granted by the competent authority, the basis on which the rejection was found no longer exists. In such circumstances, the matter requires to be restored to the file of the CIT(E) for fresh adjudication of the assessee’s application under section 80G(5)(iii), in accordance with law and after affording due opportunity of being heard. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 1st May, 2025 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER Ahmedabad, dated 01/05/2025 "