Shree Arya Seva Sangh, Patan V. The Commissioner of Income Tax (Exemption), Ahmedabad

ITA 462/AHD/2022

AI Insights

The case involves multiple appeals filed by various trusts against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their applications for registration under section 12AB of the Income Tax Act, 1961. The primary issue across these appeals was the alleged non-consideration of substantial details and documents provided by the trusts during the registration proceedings. The Tribunal noted that the Commissioner had not adequately considered the materials submitted and had dismissed the applications based on perceived insufficiencies without proper scrutiny. The Tribunal directed a fresh examination of the applications, emphasizing the need for a thorough and fair consideration of all submitted documents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133477 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-09-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 20-11-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BIREN SHAH
• Keywords: Set aside
• Section: 11

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘A’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R.SENTHIL KUMAR, JUDICIAL MEMBER Sr. No. ITA No./ Asstt.Year Appellant Respondent 1. 459/Ahd/2022 Shree Vadhiyar Niketan At & PO : Baspa Nr.Swati Society Dist: Patan 384 245 PAN : AACTS 3333 A CIT (Exemption) Ahmedabad. 2. 460/Ahd/2022 Akhanddhara Foundation 111, Havel Arched 1 st Floor Ch-Rd Sector 11 Gandhinagar 382011 Gujarat. PAN : AABTA 1540 Q CIT (Exemption) Ahmedabad. 3. 461/Ahd/2022 Amardeep Foundation Plot No.466/1 Setor 7/B Opp: Parimal Apartment Gandhinagar 382011 PAN : AABTA 4070 F CIT (Exemption) Ahmedabad. 4. 462/Ahd/2022 Shree Arya Seva Sangh Baspa Tal-Sami Patan Pin : 384 245 PAN : AABTS 3644 K CIT (Exemption) Ahmedabad. 5. 472/Ahd/2022 Smt.Menaben Kanjibhai Patel memorial Trust 16, Samarpan Market Highway Road Nr. Ketul Chambers Mehsana. PAN : AACTS 7444 J CIT (Exemption) Ahmedabad. 6. 476/Ahd/2022 Shiv Darshan Trust 20, Shiv Shakti Society Opp: Bhimnath Mahadev B/h. Market Yard, Kadi, Mehsana 382 715 PAN : AATTS 9209 A CIT (Exemption) Ahmedabad. ITA No.459/Ahd/2022 and 8 Others 2 7. 480/Ahd/2022 Shree Gordwala Education Trust Vikas Complex Radhanpur Road Mehsana 384 001. PAN : AARTS 8256 K CIT (Exemption) Ahmedabad. 8. 487/Ahd/2022 Sheth Chanalal Nahalchand Aroya Nidhi Satlasana At & Post Satlasana High Road Satlasana Mehesana, Gujarat. PAN : AABTS 3536 J CIT (Exemption) Ahmedabad. 9. 494/Ahd/2022 Ranjit Foundation Mehsana C/o. Ranjit Construction Co. Mathura Nagar B/h. Shilpa Compound Highway, Mehsana. PAN : AAATR 8289 C CIT (Exemption) Ahmedabad. (Applicant) (Responent) Assessee by : Shri Biren Shah, AR Revenue by : Shri Akhilendra Pratap Yadav, CIT-DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 2 1 / 0 9 / 2 0 2 3 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 2 7 / 0 9 / 2 0 2 3 आदेश/O R D E R PER BENCH: All the above appeals filed by different assessees are against respective orders of the ld.Commissioner of Income (Exemption)[CIT] of even dated i.e. 26.9.2022, which were passed under section 12AB of the Income Tax Act, 1961 [hereinafter referred to as "the Act" for short]. ITA No.459/Ahd/2022 and 8 Others 3 2. At the outset, we have gone through the grounds presented in all the appeals of the assessee, and noticed that the issue raised across these appeals is similar, and the grounds raised in each appeal are also identically worded. The ld.counsel for the assessee also stated that underlying the facts and circumstances leading to the filing of these appeals are common, and therefore, decision that may be taken in one appeal may be congruently applied to the remaining appeals also. The ld.DR has no objection to this proposition stated by the assessee’s counsel. In view of the above, taking ITA No.459/Ahd/2022 as lead case, and considering the facts and issue raised therein, we proceed to adjudicate the issue on hand, which shall apply mutatis mutandis to remaining appeals also. 3. From the grounds of appeal, it reveals that sole grievance of the assessee is against order of the ld.CIT in rejecting the application of assessee-trust under section 12AB of the Act despite requisite details/documents filed during the proceedings. The assessee contended that non-consideration of the material available on record is clear in violation of principle of natural justice. The sole grievance of the assessee is reflected in the following grounds: “The Commissioner of Income Tax (Exemption) Ahmedabad has erred in Law and on facts, in rejecting the application in form 1OAB U/S 12AB of the Income Tax Act, 1961, on non satisfaction of genuineness of the activities of the trust. The CIT(Exemption) has erred in law, in over looking and in summarily rejecting and not considered, the tangible material submitted during the proceeding u/s 12AB of Income Tax Act. 1961. 4. The facts as emerging out from order of the Revenue is that the assessee-trust has filed an application for registration of trust under section 12AB of the Act in Form No.10AB. During proceedings, the ld.Commissioner noted that only a part details about the activities of ITA No.459/Ahd/2022 and 8 Others 4 the Trust was furnished by the assessee, which were not sufficient enough to know the activities of the assessee-trust, for the determination of the assessee-trust’s eligibility for registration under section 12AB of the Act. Finding insufficient details to support the claim of the assessee, the ld.Commissioner rejected the application of the assessee-trust. The relevant finding of the ld.CIT can be noticed from his order at para 4 to 9 of his impugned, which read as under: ITA No.459/Ahd/2022 and 8 Others 5 Aggrieved by the above order of the ld.Commissioner, the assessee is before the Tribunal. 5. Before us, the ld.counsel for the assessee contended that the observation of the commissioner that the assessee has not furnished details and other information in support of its application for registration under section 12AB of the Act, is incorrect and not borne out of record. The assessee had indeed filed all the details necessary for its registration under section 12AB and uploaded the same in the portal of the Department. To bolster its claim, the ld.counsel for the assessee has filed a copy e-proceedings response acknowledgement before us showing list of documents uploaded by the assessee in the e-portal during the 12AB proceedings. The ld.counsel for the assessee has also filed a list of documents uploaded by the assessee which were called for by the CIT(Exemption), date of upload etc. The ld.counsel for the assessee also filed a copy of letter dated 10.8.2022 addressed to the Commissioner of Income Tax (Exemption) stating therein various ITA No.459/Ahd/2022 and 8 Others 6 details and information submitted along with Form No.10AB for registration. He submitted that all the above demonstrated that the assessee has substantially complied with, by providing requisite information and details necessary for consideration of its application. He, accordingly contended despite all these details and documents on record, the ld.CIT failed to consider the same and rejected the application of the assessee. He accordingly prayed that the matter may be restored back to the file of ld.CIT (Exemption) for reconsideration and the assessee may be given one more opportunity to submit its case. The ld.DR, on the other hand, though supported the order of the ld.CIT, but unable to contest factually the submissions of the assessee of furnishing of the details required by the ld.CIT during the proceedings. 6. We have heard both the parties and gone through order of the ld.CIT and also perused copies of various details and information submitted by the assessee during 12AB proceedings. We find that the primary rationale behind the ld.Commissioner’s rejection of the application of the assessee for registration of the Trust was that the assessee had only partly given the details as called for by the Commmissioner during the proceedings. As we go through the details submitted by the assessee, it is evident that the ld.Commissioner made his decision without a proper scrutiny of these records and, relying on unfounded assumptions, summarily dismissed the applicant's request based on perceived insufficiency of the details and information required for 12AB proceedings, which we are of the view, legally unsustainable. ITA No.459/Ahd/2022 and 8 Others 7 Therefore, in the given facts and circumstances, where the CIT asserts that the assessee has only partially furnished the information requirements, while the assessee contends that substantial compliance has been made in 12AB proceedings, we are of the view that the matter requires to be considered afresh. Consequently, the impugned order of the CIT(E) is hereby set aside, and we direct the ld.CIT to examine the matter afresh in accordance with provisions of the law, after affording reasonable opportunity of hearing to the assessee. Thus, we allow the appeal of the assessee for statistical purpose. 7. In the combined result, all the appeals of the assessee are allowed for statistical purpose. Order pronounced in the Court on 27 th September, 2023 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 27/09/2023 vk*