Shree Uttar Gujarat Panch Gam Leuva Patidar Mahamandal, Mehsana V. The Commissioner of Income Tax (Exemption), Ahmedabad

ITA 479/AHD/2022

AI Insights

The case involves multiple appeals by various charitable trusts against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, which had rejected their applications for registration under Section 12AB of the Income Tax Act, 1961. The primary contention was the alleged non-compliance and failure to provide necessary documents to substantiate the genuineness of the trusts' activities. The tribunal found that there was substantial information available that had not been considered by the CIT(E) and restored the matter for fresh adjudication, aligning with the decision in a similar case (ITA No. 479/Ahd/2022).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135836 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 27-08-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 23-11-2022
• Other Referred Cases: Valinath Mahadev, Visnagar bearing ITA No. 481/Ahd/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SHRIBIRENSHAH

Judgement Text

आयकरअपीलीयअधिकरण , अहमदाबादनयायपीी INTHEINCOMETAXAPPELLATETRIBUNAL, ‘’D’’BENCH,AHMEDABAD BEFORESHRIWASEEMAHMED,ACCOUNTANTMEMBER And SHRISIDDHARTHANAUTIYAL,JUDICIALMEMBER Sl. No(s) ITANo(s)Asset. Year(s) Appeal(s)by Appellantvs.Respondent AppellantRespondent 1.ITANo.479/Ahd/2022N.A. ShreeUttar GujaratPanchGam LeuvaPatidar Mahamandal, C/o.NavinbhaiV. Patel,31 Sanskardham Socieity, RadhanpurRoad, Mehsana-384002. PAN:AABTS7626P TheCommissioner ofIncomeTax (Exemption), Ahmedabad. 2. ITANo.486/Ahd/2022N.A. ShreeKalyanaJuth KelavaniMandal, Kalyana,Siddhpur, Mehsana-384151. PAN: AAKTS3884N TheCommissioner ofIncome Tax(Exemption), Ahmedabad. 3.ITANo.471/Ahd/2022N.A. ShreeAvani Foundation,35 DeloliNagar, ModheraRoad Mehsana-384002. PAN:AAITS7038N TheCommissioner ofIncome Tax(Exemption), Ahmedabad. IT)Ano.479/Ahd/2022with5others Asstt.Years2022-23&others 2 Assesseeby:ShriBirenShah,with ShriGulabThakor,A.Rs Revenueby:Dr.DarsiSumanRatnam,CIT.D.R सुनवाईकीतारीख /DateofHearing:28/08/2023 घोषणाकीतारीख/DateofPronouncement:27/09/2023 आदेश /ORDER PERBench: Thecaptionedsevenappealshavebeenfiledattheinstanceofassessee againsttherespectiveordersoftheLearnedCommissionerofIncomeTax 4. ITA No.475/Ahd/2022 N.A. ShriSiddheshwari MatajiMandirSeva Trust,AtKadaTal. Visnagar, Mehsana-384315. PAN:AAPTS4047L TheCommissioner ofIncome Tax(Exemption), Ahmedabad. 5-6. ITANos.268- 269/Ahd/2022 N.A.GotirthVidhyapith Trust,ApexHotel ServiceRoad, Shantipura,Circle S.PRingRoad Sarkhej, Ahmedabad-382210. PAN:AADTG6447L TheCommissioner ofIncome Tax(Exemption), Ahmedabad. 7. ITA No.458/Ahd/2022 N.ASmt.Sushilaben RameshbhaiPatel CharitableTrust,2 MadhuvanComplex Nr.ICICIBank HighwayMehsana, Gujarat-384002. PAN:AAHTS7689E TheCommissioner ofIncomeTax (Exemption), Ahmedabad. (Applicant)(Respondent) IT)Ano.479/Ahd/2022with5others Asstt.Years2022-23&others 3 (Exemption),Ahmedabadarisinginthematterofassessmentorderpassedunder s.143(3)r.w.s.153A(1)(b)oftheIncomeTaxAct,1961(here-in-afterreferredto as"theAct")relevanttotheAssessmentYearsN.A. 2.First,wetakeupITANo.479/Ahd/2022,anappealbytheassesseein thecaseofShreeUttarGujaratPanchGamLeuvaPatidarMahamandal. Theassesseehasraisedthefollowinggroundsofappeals. 1.TheCommissionerofIncomeTax(Exemption)Ahmedabadhaserredinlawandonfacts,in rejectingtheapplicationinform10ABu/s.12ABoftheIncomeTaxAct,1961,onnon satisfactionofgenuinenessoftheactivitiesofthetrust. 2.TheCIT(Exemption)haserredinlaw,inoverlookingandinsummarilyrejectingandnot considered,thetangiblematerialsubmittedduringtheproceedingu/s.12ABoftheIncome TaxAct1961. 3.Yourappellantcrave,leavetoadd,alter&ortoamendmodifysubstitutealloranyground ofappealbeforefinalhearingifnecessitysoarise. 3.TheonlyissueraisedbytheassesseeisthattheLd.CIT(E),erredin rejectingtheregistrationapplicationfiledbytheassesseeundersection12ABof theAct,basedonsurmises&conjuncturesthatassesseehasfailedtojustifythe genuinenessoftheactivitiessatisfactorily. 4.Attheoutset,wenotethattheLd.CIT(Exemption)hasrejectedthe applicationfiledbytheassesseeforregistrationu/s12ABoftheAct,onthe reasoningthattheassesseefailedtosupplythecrucialdocumentsduringthe proceedingswhichareenumeratedbelow: i)CertifiedcopyofUndertakingsofSection2(15),11(5),12AB,13(1)(c)&13(c)&13(3). ii)Income&ExpenditureStatementforF.Y.2021-22&2020-21. iii)AuditedProvisionalAccountforF.Y2021-22&2020-21. iv)Undertakingregardingadherenecetowardsalltherequirementsoflawasarematerialfor thepurposeofitsobjectsasenumeratedinthetrustdeed. v)Detailsregardingdonationsreceived&paid. vi)Notesonactivitiesconductedsinceinception. vii)NoObjectionCertificatefromtheownerofthepremisesfromwhichitoperatingalongwith proofofhisownership. viii)Bankdetails. IT)Ano.479/Ahd/2022with5others Asstt.Years2022-23&others 4 5.Intheabsenceofthedetailsdiscussedabove,theLd.CIT(E),couldnot verifythegenuinenessoftheactivitiescarriedoutbytheassessee.Therefore,he rejectedtheapplicationmadebytheassesseeforregistrationu/s12ABoftheAct. 6.TheLd.CIT(E)inhisorderalsonotedthatsubstantialopportunitieswere affordedtotheassesseeonmultipleoccasions,butonlypartialdetailswere suppliedbytheassessee. 7.Beingaggrievedbytheorderofld.CIT(A),theassesseeisinappealbefore us. 8.TheLd.ARbeforeusfiledapaperbookrunningfrompages1to8and contendedthatsubstantialcompliancesweremadebytheassesseevideletter dated18/08/2022,whichisalsoplacedonpages1to4ofthepaperbook.TheLd. ARalsofiledtheacknowledgmentsafterdownloadingfromtheIncome-taxportal tojustifyitsstandthatthenecessarydetailswereavailablebeforetheLd.CIT(E) whichareavailableonpages5to8ofthepaperbook.However,theLd.AR furtherprayedtorestoretheissueforfreshadjudicationtothefileoftheLd. CIT(E),afterevaluatingtheevidenceavailableonrecord. 9.Ontheotherhand,theLd.DRdidnotraiseanyobjectionifthematteris setasidetothefileoftheLd.CIT(E),forfreshadjudicationaspertheprovisionof law. 10.Wehaveheardtherivalcontentionofboththepartiesandperusedthe materialsavailableonrecord.Fromtheprecedingdiscussion,wenotethatthe assesseehasnotmadefullcompliancewiththenoticesissuedbytheLd.CIT(E), andthereforetheLd.CIT(E),rejectedtheapplicationfiledbytheassesseefor registrationu/s12ABoftheAct.Oncomparingthedetailsfiledbytheassessee vis-a-visthedetailswhichwerenotavailableonrecordaspertheLd.CIT(E),we notethattherewassubstantialinformationavailablebeforetheLd.CIT(E). IT)Ano.479/Ahd/2022with5others Asstt.Years2022-23&others 5 10.1Bethatasitmaybe,therewascertaininformationaspointedoutbytheLd. CIT(E),whichwerenotavailableduringtheproceedingsbeforehimforwhichthe Ld.ARassuredtomakenecessarycompliance.Thus,intheinterestofjusticeand fairplay,weareinclinedtorestoretheissuetothefileofLd.CIT(A),forfresh adjudicationaspertheprovisionoflaw. 10.2WealsonotethatthisTribunalintheothercasesinvolvingidenticalfacts andcircumstanceshasalsorestoredtheissue,inthecaseofValinathMahadev, VisnagarbearingITANo.481/Ahd/2022,beforetheLd.CIT(E),forfresh adjudicationaspertheprovisionsoflaw.Therelevantextractoftheorderis reproducedasunder: 6.Wehavegivenourthoughtfulconsiderationandperusedthematerialsavailableon record.Admittedly,theassesseevideitsreplyletterdated16-08-2022furnisheddetails abouttheregistrationcertificate,trustdeedandAuditReportforthreeassessmentyear andfurtherdetails.HoweverwefindthattheLd.CIT(E)hasnotcontraventedexact deficiencyinthedocumentssubmittedbytheasscsseeandexactnatureofclarification, explanationrequiredfromtheassessee,butrejectedtheregistrationapplicationu/s.12AB oftheAct.Furthertheassesseesareexistingandcarriedtheobjectsenumeratedinthe trustforlongtime. 7.Thereforeconsideringthefactsandcircumstancesofthecase,inordertoprevent miscarriageofjustice,wefinditfitandpropertoprovideonemoreopportunityofbeing heardtotheassesseeinsupportofitscaseforregistrationofthetrustu/s.12ABofthe Act.ThereforewedisposeofthisappealbyrestoringthisissuetothefileoftheLd.CIT(E) withadirectionuponhimtoprovidefurtheropportunityofbeingheardtotheassessee andconsiderthedocuments,evidenceswhichtheassesseewouldfileasperthenotice issuedbytheLd.CIT(E).Uponconsideringtheentiresetofdocumentsanduponaffording anopportunityofbeingheardtotheassessee,theLd.CIT(E)todisposeoftheapplication forgrantofregistrationoftheTrustunderSection12ABoftheActwithaspeakingorder. Needlesstosayiftheassesseefailstoco-operatewiththeLd.CIT(E)asdirectedherein above,theLd.CIT(E)wouldbeatlibertytopassordersstrictlyinaccordancewithlaw. 8.Intheresult,theappealfiledbytheAssesseeisherebyallowedforstatistical purposes. 9.Sincetheissueinother1TANos.473/Ahd/2022,477/Ahd/2022and1TANos.482 to484/Ahd/2022areidenticaloftheabovecasewhereintheassesseeundertakentofile requireddetailsbeforeLd.CIT(E),thedecisionrenderedinITANo.481/Ahd/2022shallalso applymutatismutandisinallother5appeals. 10.Inthecombinedresult,theappealsfiledbytheAssesseeareallowedforstatistical purposes. IT)Ano.479/Ahd/2022with5others Asstt.Years2022-23&others 6 10.3Inviewoftheabove,werestoretheissuetothefileoftheLd.CIT(E),for freshadjudicationaspertheprovisionoflaw.Hence,thegroundofappealofthe assesseeisallowedforstatisticalpurposes. 10.4Intheresult,theappealfiledbytheassesseeisallowedforstatistical purposes. Nowcomingtothefollowing4appealsfiledbythedifferentAssessee Sr. No. ITANo.Assessee 1. No.486/Ahd/2022ShreeKalyanaJuthKelavani Mandal 2.No.471/Ahd/2022ShreeAvaniFoundation 3.No.475/Ahd/2022 ShriSiddheshwariMatajiSeva Trust 4.No.458/Ahd/2022 Smt.SushilabenRameshbhaiPatel CharitableTrust 11.Attheoutset,wenotethattheissuesraisedbythefourdifferent assesseeinitsgroundsofappealsasmentionedaboveareidenticaltotheissues raisedbytheassesseeinITANo.479/AHD/2022inthecaseofShreeUttar GujaratPanchGamLeuvaPatidarMahamandal.Therefore,thefindings giveninITANo.479/AHD/2022shallalsobeapplicabletopresentappealsbearing ITANos.486,471,475&458/AHD/2022.TheappealoftheassesseebearingITA No.479/Ahd/2022hasbeendecidedbyusvideparagraphNo.10ofthisorderin favouroftheassesseeforstatisticalpurposes.ThelearnedDRandtheARalso agreedthatwhateverwillbethefindingsfortheassessmentyearinITANo. 479/Ahd/2022shallalsobeappliedtotheITANos.486,471,475&458/AHD/2022. Hence,thegroundsofappealsfiledbyassesseeareallowedforstatistical purposes. 11.1Intheresult,theappealsfiledbytheassesseeareallowedforthe statisticalpurposes. IT)Ano.479/Ahd/2022with5others Asstt.Years2022-23&others 7 NowComingtotheITANos.268-269/Ahd/2022forA.Y.NA,appealsfiled bytheassesseeinthecaseofGotirthVidhyapithTrust,Ahmedabad 12.Attheoutset,wenotethatthereisadelayinfilingtheappealsbythe assesseefor429days.However,wenotethatthedelayinfilingtheappealbythe assesseefallsduringthecovid-19period.Thus,inviewofthejudgmentofHon’ble SupremeCourtinMANo.665of221CognizanceforExtensionofLimitation, reportedin[2022]134taxmann.com307(SC),wecondonethedelayhappened infilingtheappealsbytheassesseeandproceedtoadjudicatetheissueonmerit. 12.1Whenthematterwascalledforhearing,wenotethatthematterwaslisted forhearingdated28/04/2023,therewasadjournmentpetitionfiledbythe assesseewhichisplacedonrecord.Thereafter,thebenchonthenextdateof hearingdidnotfunction.Thus,thereisapossibilitythattheassesseewasnot awareofthenextdateofhearing.Furthermore,wenotethattheissueraisedby theassesseeisidenticaltotheissuesasdiscussedintheprecedingappeals. Therefore,weareinclinedtotakeupthematterforhearingex-partetothe assessee. 12.2TheLd.DRalsodidnotraiseanyobjectionifthematteristakenupfor hearingex-partetotheassessee.Accordingly,wehavedecidedtoadjudicatethe issueafterhearingtheLd.DRandthedetailsavailableonrecord. 12.3Attheoutset,wenotethattheissuesraisedbytheassesseeinits groundsofappealsinITANos.268-269/Ahd/2022fortheA.YNAareidenticalto theissuesraisedbytheassesseeinITANo.479/AHD/2022inthecaseof ShreeUttarGujaratPanchGamLeuvaPatidarMahamandal.Therefore, thefindingsgiveninITANo.479/AHD/2022shallalsobeapplicabletopresent appealsbearingITANos.268-269/Ahd/2022.Theappealoftheassesseebearing ITANo.479/Ahd/2022forA.Y.2022-23hasbeendecidedbyusvideparagraph No.10ofthisorderinfavouroftheassesseeforstatisticalpurposes.Thelearned IT)Ano.479/Ahd/2022with5others Asstt.Years2022-23&others 8 DRandtheARalsoagreedthatwhateverwillbethefindingsinITANo. 479/Ahd/2022shallalsobeappliedtotheITANos.268-269/Ahd/2022forA.YN.A. Hence,thegroundofappealsfiledbyassesseeareallowedforstatisticalpurposes. 12.4Intheresult,theappealsfiledbytheassesseeareallowedforthe statisticalpurposes. 13.Inthecombinedresults,allthesevenappealsfiledbythedifferent assesseeareallowedforthestatisticalpurposes. OrderpronouncedintheCourton27/09/2023atAhmedabad. Sd/-Sd/- (SIDDHARTHANAUTIYAL)(WASEEMAHMED) JUDICIALMEMBERACCOUNTANTMEMBER (TrueCopy) Ahmedabad;Dated27/09/2023 Manish