Shri Saisharan Adivasi Cheritable Trust, Bharuch V. The CIT(Exemption), Ahmedabad

ITA 72/AHD/2023

AI Insights

The case involves Shri Saisharan Adivasi Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for recognition under Section 80G(5) of the Income Tax Act, 1961. The Trust, which manages a school for economically poor and tribal children, was initially granted registration under Section 12A but faced rejection for 80G(5) recognition due to insufficient documentation of its activities. The Tribunal noted the absence of a reasonable opportunity for the Trust to present its case, leading to the decision to remand the case for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125342 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 25-06-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 02-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I. T. A. No . 72/Ahd/202 3 ( नधा रण वष / A ss es sment Year : 2022-23) Sh r i S ais h ar a n A d iv a s i C h ar ita bl e T r us t Sa i N iv as , N a r ma da N a ga r , D e dia pa da , Na r ma d a - 39 31 4 5 बनाम/ Vs . CI T ( E x em pt io n) A h m e da b ad - 3 80 0 15 थायी लेखा सं./जीआइआर सं./P A N / G I R N o . : A A Q T S5 3 4 5 G (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : None यथ क ओर से/Respondent by : Shri James Kurian, CIT.DR स ु नवाई क तार ख / D a t e o f H e a r i ng 26/06/2023 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 27/06/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 31.12.2022 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, whereby and whereunder application for grant of recognition ITA No. 72/Ahd/2023 (Shri Saisharan Adivasi Charitable Trust vs. CIT(E),) A.Y.– 2022-23 - 2 – under Section 80G(5) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) has been rejected. 2. None appeared at the time of hearing of the appeal on behalf of the assessee neither any adjournment has been sought for. However, we thought it fit to proceed with the matter ex parte keeping in view of the particular fact emanates from the orders passed by the authorities below. 3. The appellant Trust is claimed to have been running and managing the “Shreemati Shardadevi English Medium School” for economically poor and tribal children. Further that, it is established with a view to carry out certain objects for the development and welfare of people of the society and all the living creature of the environment by and under the deed dated 01.01.2016. The assessee was granted registration under Section 12A of the Act on 24.09.2021 for A.Y. 2022-23 to A.Y. 2026-27. 4. It appears from the order passed by the Ld. CIT(E) that application for approval of Trust under Section 80G(5) of the Act was accepted by the Department in Form No. 10AB electronically filed on 24.06.2022. Upon perusal of the same, notice dated 07.11.2022 was sent through ITBA on the e- mail id given by the applicant Trust with a request to furnish the details of the activities actually carried out by the Trust and certain details / documents mentioned therein, in terms of the provisions for approval under Section 80G(5) of the Act in response whereof the assessee filed its reply. A further opportunity was given to the applicant by issuing notice dated 30.11.2022 ITA No. 72/Ahd/2023 (Shri Saisharan Adivasi Charitable Trust vs. CIT(E),) A.Y.– 2022-23 - 3 – requesting it to furnish details of the activities actually carried out by the Trust and / or documents as mentioned therein as sent earlier. Upon perusal of the details submitted by the assessee being MOA and Rules and Regulations, particularly the objects mentioned in Sl. No. 9 found to be Temple Construction, social service, religious-charitable social works. The application for approval under Section 80G(5) of the Act has been denied to the appellant. At the time of hearing of the matter, the Ld. DR vehemently argued in support of the order passed by the Ld. CIT(E). However, we find that before rejecting the application for grant of benefit under Section 80G(5) of the Act, no further opportunity was given to the appellant. As no reasonable opportunity has been afforded to the appellant before cancelling the prayer for approval under Section 80G(5) of the Act, the basic principle of natural justice has not been adhere to in its proper perspective. 5. Hence, under this particular fact and circumstance of the case, we, in order to prevent the miscarriage of justice, would like to give another opportunity of being heard to the assessee by the Ld. CIT(E). In that view of the matter, we quash the order impugned and setting aside the issue to the file of the Ld. CIT(E) for re-adjudication of the same afresh upon giving reasonable opportunity of being heard to the applicant/appellant and upon considering the evidence already on record or any other evidence/evidences which the appellant may like to rely upon in support of its case for grant of approval under Section 80G(5) of the Act before the Ld. CIT(E). We would like to note that we have not dealt with the merit of the matter. We also make it clear that the assessee would also render its full cooperation to the authority ITA No. 72/Ahd/2023 (Shri Saisharan Adivasi Charitable Trust vs. CIT(E),) A.Y.– 2022-23 - 4 – below, in default, the Ld. CIT(E) would be at liberty to pass order strictly in accordance with law. 6. In the result, assessee’s appeal is allowed for statistical purposes. This Order pronounced on 27/06/2023 Sd/- Sd/- (WASEEM AHMED) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 27/06/2023 S. K. SINHA 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. गाड3 फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील$य अ%धकरण, अहमदाबाद / ITAT, Ahmedabad