JAI BHAGWATI CHARITABLE TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2119/AHD/2024

AI Insights

The Jai Bhagwati Charitable Trust appealed against the order of the Commissioner of Income Tax (Exemption), which had rejected their application for approval under Section 80G(5) of the Income Tax Act, 1961. The rejection was based on the absence of a valid registration certificate under Section 12A, which was deemed a prerequisite for the approval under Section 80G. The Trust argued that the rejection was erroneous and that they had not been given a sufficient and reasonable opportunity of hearing. The Tribunal noted that the matter regarding the Trust's registration under Section 12A was already remanded back to the CIT(Exemption) in a previous appeal (ITA No.1771/Ahd/2024) and decided to remand the current appeal as well, to ensure a fair hearing and proper consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34157 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Other Referred Cases: ITA No.1771/Ahd/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.N. DSOUZA
• Assessee Lawyers: MEHUL K. PATEL
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A; 80G

Judgement Text

"ITA No.2119/Ahd/2024 Jai Bhagwati Charitable Trust vs. CIT(E) Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.2119/Ahd/2024 Jai Bhagwati Charitable Trust, 10, Avani Bunglows, B/h. D-Mart Motera, Sabarmati, ONGC S.O., Ahmedabad City, Ahmedabad – 380 005 [PAN – AADTJ 9145 N] Vs. The Commissioner of Income Tax (Exemption), Room No.609, Floor-6, Aayakar Bhavan (Vejalpur), Near Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad – 380 015.. (Appellant) (Respondent) Assessee by Shri Mehul K. Patel, AR Revenue by Shri R.N. Dsouza, CIT-DR Date of Hearing 04.03.2025 Date of Pronouncement 19.03.2025 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER: This appeal is filed by the Assessee against order dated 27.11.2024, passed by the CIT(E), Ahmedabad. 2. The assessee has raised the following grounds of appeal: “1. That on facts, and in law, the learned CIT(Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing to the appellant. 2. That on facts, and in law, the learned CIT(Exemption) has grievously erred in rejecting the application for approval u/s.80G(5) of the Act. 3. That on facts, and in law, it ought to be considered that the appeal of the appellant against rejection of application u/s.12A of the Act is pending before Hon’ble ITAT Bench “A” as on today bearing ITA No.1771/Ahd/2024. 4. The appellant craves liberty to add, alter, amend any ground of appeal. ITA No.2119/Ahd/2024 Jai Bhagwati Charitable Trust vs. CIT(E) Page 2 of 3 3. The appellant Trust has filed Form No.10A in respect of the application for approval under Sub-clause (B) of Clause (iii) of First Proviso to Sub-section (5) of Section 80G of the Income Tax Act, 1961. The CIT(Exemption) rejected the appellant Trust’s application stating therein that the registration under Section 12A of the Act is pre-requisite for grant of approval under Section 80G of the Act which in absence of valid registration certificate the approval under Section 80G of the Act could not be granted. 4. Being aggrieved by the rejection, the appellant Trust filed appeal before us. 5. The Ld. AR submitted that the appeal of the appellant Trust against rejection of application under Section 12A of the Act is allowed by the Tribunal in ITA No.1771/Ahd/2024 thereby remanding back the matter to the file of the CIT(Exemption). 6. The Ld. DR relied upon the order of the CIT(Exemption). 7. We have heard both the parties and perused all the relevant material available on record. Since the Tribunal in ITA No.1771/Ahd/2024 wherein the Tribunal has remanded back the matter to the file of the CIT(Exemption)regarding the consideration of application under Section 12A, the present appeal is in respect of Section 80G(5) approval and hence the same also needs to be remanded back to the file of the CIT(Exemption) for proper consideration. The appellant Trust be given opportunity of hearing by following the principles of natural justice. 8. In the result, appeal of the appellant Trust is partly allowed for statistical purpose. Order pronounced in the open Court on this 19th March, 2025. Sd/- Sd/- (DR. BRR KUMAR) (SUCHITRA KAMBLE) Vice President Judicial Member Ahmedabad, the 19th March, 2025 PBN/* ITA No.2119/Ahd/2024 Jai Bhagwati Charitable Trust vs. CIT(E) Page 3 of 3 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad "