Appeal details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 125657 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 28 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
24-04-2023
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Next Hearing Date
23-04-2023
Assessment Year
2022-2023
Appeal Filed On
27-11-2022
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I .T .A . N o . 5 0 8/ A h d /2 0 2 2 ( A s se ss m e nt Y e a r : 20 22- 2 3 ) Sh r e e G r a m Vi d h yo tej a k M a n da l Sa n de r, Sa n de r, S an d e r Sa n d er P a t an , Gu j ar a t -3 84 2 6 5 V s . C I T(E x e m p ti on ) , A h me da ba d [ P AN N o. A A AA S6 6 2 0 D ] (Appellant) .. (Respondent) Appellant by : Shri Biren Shah, A.R. Respondent by: Shri Sudhendu Das, CIT D.R. D a t e of H ea r i ng 24.04.2023 D a t e of P r o no u n ce me nt 25.04.2023 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. CIT(Exemption), Ahmedabad in Application No. CIT(E)- Ahmedabad/2022-23/12AA/11441 vide order dated 26.09.2022 passed for Assessment Year 2022-23. 2. The assessee has taken the following grounds of appeals:- “1. The Commissioner of Income Tax (Exemption) Ahmedabad has erred in Law and on facts, in rejecting application in form 10AB U/S 12AB of the Income Tax Act, 1961, on non satisfaction of genuineness of the activities of the trust. ITA No. 508/Ahd/2022 Shree Gram Vidhyotejak Mandal Sander vs. CIT(E) Asst.Year –2022-23 - 2 - 2. The CIT(Exemption) has erred in law, in over looking and in summarily rejecting and not considered, the tangible material submitted during the proceedings u/s 12AB of Income Tax Act, 1961. 3. Your appellant crave, leave to add, alter, & or to amend modify substitute all or any ground of appeal before final hearing if necessity so arise.” 3. The brief facts of the case are that the assessee filed application for registration of Trust under Section 12AB of the Act on 31.03.2022 in Form No. 10AB under Rule 17A of the Income Tax Rules, 1962. In the proceedings before CIT(Exemption), he dismissed the application of the assessee by holding that the assessee has furnished incomplete details, despite several opportunities. While dismissing the application of the assessee, the CIT(Exemption) made the following observations: “6. In spite of numerous opportunities and specific requisitions, the applicant has not submitted the requisite details. Therefore, no verification of the objects with the activities carried out, if any could be made. The applicant has submitted undertaking, and bank account statements of some other trust. The details filed by the applicant are peripheral and the response is cryptic in nature. Thus, the genuineness of the activities does not get established in previous year. Section 12AB makes, it very clear that before granting registration under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and also he has to verify that these activities are in ITA No. 508/Ahd/2022 Shree Gram Vidhyotejak Mandal Sander vs. CIT(E) Asst.Year –2022-23 - 3 - consonance with the objects of the trust or institution. Further, he has to ensure that other laws material for the purpose of achieving objects are complied. Reliance in this regard is also placed on the judgment delivered by the Hon’ble Supreme Court in the case of Commissioner of Income-tax, Ujjain Vs Dawoodi Bohara Jamat Civil Appeal No. 2492 of 2014. ..... 8. As discussed above, the applicant has failed to file documentary evidences to enable me to satisfy about the genuineness of its activities and to verify these activities are in consonance with its objects. 9. Looking to the above facts, I am unable to arrive at the satisfaction of the genuineness of the activities. Hence, the application filed in Form No. 10AB for the registration u/s. 12AB of the I.T. Act, 1961, is rejected.” 4. The assessee is in appeal before us against the aforesaid order passed by the CIT(Exemption). Before us the Counsel for the assessee submitted that the assessee is eligible for registration under Section 12AB of the Act and application of the assessee was rejected without giving adequate opportunity to the assessee / applicant to present its case on merits. The Counsel for the assessee submitted that if given an opportunity of hearing, he shall diligently comply with the same and produce all required documents to the satisfaction of Ld. CIT(Exemption) in support of the eligibility of the applicant’s application for grant of registration of the Trust under Section 12AB of the Act. ITA No. 508/Ahd/2022 Shree Gram Vidhyotejak Mandal Sander vs. CIT(E) Asst.Year –2022-23 - 4 - 5. The Ld. D.R. has also not objected to the matter being set-aside to the file of the Ld. CIT(Exemption) for denovo consideration of the application for registration of the Trust under Section 12AB of the Act, in the interest of justice. 6. Accordingly, in view of the facts as noted above, in the interest of justice, the case is being set-aside to the file of Ld. CIT(Exemption) for denovo consideration of the application of the assessee Trust for registration under Section 12AB of the Act and to pass appropriate orders after considering the documents filed by the applicant / assessee in accordance with law. Hence, the matter is being set-aside to the file of Ld. CIT(Exemption) with the above direction. 7. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 25/04/2023 Sd/- Sd/- (WASEEM AHMED) (SIDDHARTHA NAUTIYAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 25/04/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad
AI Insights
The case involves Shree Gram Vidhyotejak Mandal Sander, a trust, appealing against the decision of the CIT(Exemption), Ahmedabad, which rejected their application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(Exemption) had dismissed the application citing incomplete details and inability to verify the genuineness of the trust's activities. The tribunal found merit in the assessee's argument that they were not given adequate opportunity to present their case and directed a re-evaluation of the application.
