JAFARI WELFARE TRUST,SIDDHPUR V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 185/AHD/2025

AI Insights

The case involves Jafari Welfare Trust appealing against the decision of the Commissioner of Income Tax (Exemption), who rejected the Trust's application for approval under Section 80G of the Income Tax Act, 1961. The rejection was based on the Trust's failure to respond to notices and provide sufficient documentation to demonstrate the genuineness of its activities and compliance with the conditions of Section 80G(5). The Tribunal found that the Trust had not willfully ignored the notices but faced practical difficulties due to the trustees' limited familiarity with digital communications. The Tribunal decided to restore the matter to the CIT(E) for a fresh evaluation, emphasizing the need for a fair opportunity for the Trust to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126521 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADJOURNMENT APPLICATION FILED
• Assessee Lawyers: VIVEK CHAVDA
• Keywords: Additional evidence; Principle of natural justice; Grounds of appeal; Commissioner; Commissioner of Income Tax; Statistical purposes; Restored; Trustee; Exempt; Trustees; Commissioner of Income Tax (Exemptions)
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER I.T.A. No.185/Ahd/2025 (Assessment Year: N.A.) Jafari Welfare Trust, Yaman Complex, Kakoshi Char Rasta, Sidhpur, Dist-Patan, Gujarat-384151 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAATZ0338A] (Appellant) .. (Respondent) Appellant by : Shri Vivek Chavda, A.R. Respondent by: Adjournment Application Filed Date of Hearing 23.04.2025 Date of Pronouncement 25.04.2025 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. Commissioner of Income Tax (Exemptions), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 21.11.2024. 2. The Assessee has taken the following grounds of appeal:- “1.1 The learned CIT (Exemption) erred in law and on facts in rejecting the appellant’s application for approval under section 80G of the Income Tax Act, 1961 by order dtd:21.11.2024. 1.2 The learned CIT (Exemption) erred in cancelling the approval to the appellant under section 80G without providing sufficient and specific opportunity to the appellant to present its case. Therefore, the appellant shall be granted opportunity to produce additional evidences. 1.3 The learned CIT(Exemption) erred in treating non-response to email notices as non-compliance when: (a) The trustees had already demonstrated their compliance by submitting all required documents with Form 10AB (b) The inability to respond to notices was due to practical difficulties in accessing email, not willful non-compliance (c) The trust has consistently maintained transparency in its operations. ITA No. 185/Ahd/2025 Jafari Welfare Trust vs. CIT(E) Asst. Year –N.A. - 2– 1.4 The learned CIT(Exemption) erred in rejecting the application solely on the ground of non-submission of a note on activities and other unspecified details, without: (a) Considering the documents already submitted with the Form 10AB application (b) Examining the objects and activities mentioned in the trust deed (c) Verifying the financial statements and other documents on record 1.5 The learned CIT(Exemption) failed to appreciate that mere non-submission of additional information within the short time provided does not justify rejection of approval under section 80G, especially when provisional registration was already granted earlier. It is therefore prayed that the appellant may please granted approval u/s 80G in the interest of natural justice considering the eccentric facts of the case.” 3. The brief facts of the case are that the assessee filed an application for grant of approval under Section 80G of the Act on 23.06.2024. The CIT(E) issued notices dated 03.10.2024 and 07.11.2024 requesting certain details / documents from the applicant trust. However, the assessee / applicant trust did not respond to notices issued by CIT(E) and accordingly the application was rejected by CIT(E) with the following observations: “7. As discussed above, the applicant/assesee has failed to file documentary evidences to enable me to satisfy about: (A) the genuineness of activities of such institution or fund; and (B) the fulfillment of all the conditions laid down in clauses (i) to (v) of section 80G(5) of the act. 8. In view of the above, the present application filed in Form No. 10AB for approval u/s 80G(5)(iii) of the Act is rejected and your provisional approval also stands cancelled.” 4. The assessee / applicant trust is in appeal before us against the order passed by Ld. CIT(E), rejecting grant of approval under Section 80G of the Act. Before us, the Counsel for the assessee submitted that the trustees of the applicant trust are senior citizen with limited familiarity with digital communications and accordingly, they became aware of the notices sent by CIT(E) only after considerable delay, causing inadvertent non- appearance before the Ld. CIT(E). However, it was submitted that the ITA No. 185/Ahd/2025 Jafari Welfare Trust vs. CIT(E) Asst. Year –N.A. - 3– documents requested in the notices issued by Ld. CIT(E) were already attached in the original Form 10AB application which contained certain information like Trust Deed, Audit Report and other supporting documentation. The Counsel for the assessee submitted that if given an opportunity of hearing, the assessee / applicant trust shall diligently appear before the CIT(E) and respond to all notices issued by Ld. CIT(E). 5. On going through the facts of the instant case and the submission of the Counsel for the assessee, in the interest of justice, the matter is restored to the file of Ld. CIT(E) for de-novo consideration. However, since there has been admitted non-compliance on part of the assessee / applicant trust, a cost of Rs. 5,000/- is directed to be imposed on the assessee / applicant trust for the purposes of setting-aside the matter to the file of Ld. CIT(E), to be paid to the Prime Minister Relief Fund. 6. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 25/04/2025 Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 25/04/2025 TANMAY, Sr. PS TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "