JALARAM SEVA SANSTHAN TRUST,SURAT V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 1098/AHD/2025

AI Insights

The case involves the Jalaram Seva Sansthan Trust appealing against the decisions of the Commissioner of Income Tax (Exemption), Ahmedabad, which had rejected the Trust's applications for registration under Section 12A and approval under Section 80G of the Income Tax Act. The primary contention was whether the Trust had commenced its charitable activities in the relevant year, which was a prerequisite for the grant of registration under Section 12A. The Tribunal found that the Commissioner had not adequately considered the evidence provided by the Trust, which demonstrated the commencement of activities. Consequently, the Tribunal restored the matter to the Commissioner for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707225 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 16-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: RAKESH RUPAREL
• Keywords: Gift
• Section: 12A; 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. Nos.1065 & 1098/Ahd/2025 (Assessment Year: N.A.) Jalaram Seva Sansthan Trust, M-86, Second Floor, C-Wing, Shreeji Arcade, Adajan, Surat, Gujarat-395009 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAETJ9176C] (Appellant) .. (Respondent) Appellant by : Shri Rakesh Ruparel, Advocate Respondent by: Shri Alpesh Parmar, CIT-DR Date of Hearing 04.07.2025 Date of Pronouncement 07.07.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: These are appeals filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemptions), (in short “Ld. CIT(E)”), Ahmedabad vide orders dated 27.03.2025 & 29.03.2025 rejecting the application for grant of registration under Section 12A and under Section 80G of the Act filed by the assessee / applicant trust. Since the facts and issues for consideration are common for both the appeals before us, both the appeals filed by the assessee are being disposed of by way of a common order. We shall first deal with the order passed by Ld. CIT(E) denying grant of registration under Section 12AB of the Act. 2. The brief facts of the case are that the assessee filed application for grant of registration under Section 12A of the Act in Form 10AB before Ld. ITA Nos. 1065 & 1098/Ahd/2025 Jalaram Seva Sansthan Trust vs. CIT(E) Asst. Year –N.A. - 2– CIT(E) for his consideration. In response to application filed by the assessee / applicant trust, Ld. CIT(E) issued two notices of hearing dated 17.01.2025 and 22.03.2025. In the said notices, Ld. CIT(E) asked the assessee to submit the date of commencement of activities and ledger accounts for expenditure incurred by the assessee / applicant trust during the impugned year under consideration. Ld. CIT(E) noted that vide response dated 25.03.2025, the assessee had specifically submitted that it had not carried out any charitable activities and accordingly, Ld. CIT(E) dismissed the application for grant of approval under Section 12A of the Act with the observations that since the assessee / applicant trust had not commenced it’s activities for the impugned year under consideration, the application filed was premature and hence liable to be rejected. While passing the order Ld. CIT(E) made the following observations: “4.2 In view of the above, it is evident that the applicant is yet to commence its activities by applying donations/receipts towards charitable object and therefore, the application filed by the applicant is liable to be premature in view of the provision laid down u/s. 12A(1)(ac)(iii) of the Income Tax Act which is reproduced as under: (iii) where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier; 5. In view of the above, the application filed by the assessee is treated as premature & non-maintainable and the present application filed in Form No. 10AB for the registration u/s. 12AB of the IT. Act, 1961,is rejected.\"Further, the applicant can file a fresh application when it is due as per the provisions laid down in sub- clause(iii) of clause (ac) of sub-section (1) of section l2Aof the act.” 4. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(E). Before us, at the outset, the Counsel for the assessee submitted that the assessee / applicant trust had submitted various evidences before Ld. CIT(E) to demonstrate that the assessee / applicant trust had ITA Nos. 1065 & 1098/Ahd/2025 Jalaram Seva Sansthan Trust vs. CIT(E) Asst. Year –N.A. - 3– commenced it’s activity during the impugned year under consideration. The Counsel for the assesee submitted that in the instant case, the genuineness of the trust or the objects carried out by the assessee as being charitable in nature were not disputed by Ld. CIT(E). The only reason for rejecting the application filed by the assessee / applicant trust for grant of registration under Section12A of the Act was on account of non-commencement of activities by the assessee / applicant traut during the impugned year under consideration. However, the Counsel for the assessee submitted that the assessee had submitted various details like ledger of expenses incurred, newspaper articles, details of gifts distributed objects etc. before Ld. CIT(E) to show that the activities of the assessee / applicant trust had commenced during the impugned year under consideration, but the same were omitted to be taken into consideration by the Ld. CIT(E) while rejecting the grant of approval under Section 12A of the Act. Accordingly, the Counsel for the assessee submitted that in the interest of justice, the matter may be restored to the file of Ld. CIT(E) for de-novo consideration and to consider the case of the assessee / applicant trust on merits on the basis of material available on record. 5. In response, Ld. DR also did not object to the matter being restored to the file of Ld. CIT(E) for de-novo consideration, on merits, in the interest of justice. 6. We have heard rival contention and perused the material on record. 7. On going through the facts of the instant case, we observe that assessee has submitted certain evidences before us to demonstrate that the activities of ITA Nos. 1065 & 1098/Ahd/2025 Jalaram Seva Sansthan Trust vs. CIT(E) Asst. Year –N.A. - 4– the applicant trust / assessee had commenced during the year under consideration. The Counsel for the assessee also submitted before us that these details were duly furnished before Ld. CIT(E), but there was omission on part of Ld. CIT(E) to take the same into consideration while dismissing the application of the assessee / applicant trust. Accordingly, looking into the assessee’s set of facts, the matter is hereby restored to the file of Ld. CIT(E) for de-novo consideration, in the interest of justice and thereafter pass appropriate orders on the basis of material available on record. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Now we shall deal with the order passed by Ld. CIT(E) denying grant of approval under Section 80G of the Act in ITA No. 1098/Ahd/2025 9. In this case the assessee had filed application for grant of approval under Section 80G of the Act, which was rejected by the Ld. CIT(E) on the ground that for grant of approval under Section 80G of the Act, a valid order for registration under Section 12A of the Act is a pre-requisite. Since, the assessee does not hold a valid registration certificate under Section 12A of the Act, approval under Section 80G of the Act could not be granted to the assessee. 10. However, since in the preceding part of the order, we have restored the issue of grant of approval under Section 12A of the Act to the file of Ld. CIT(E), for de-novo consideration, accordingly, the appeal filed by the assessee / applicant trust against order of rejection of approval under Section ITA Nos. 1065 & 1098/Ahd/2025 Jalaram Seva Sansthan Trust vs. CIT(E) Asst. Year –N.A. - 5– 80G of the Act, is also hereby restored to the of Ld. CIT(E) for de-novo consideration. 11. In the combined result, both the appeals filed by the assessee / applicant trust are allowed for statistical purposes. This Order is pronounced in the Open Court on 07/07/2025 Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 07/07/2025 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 1. Date of dictation 04.07.2025 2. Date on which the typed draft is placed before the Dictating Member 04.07.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 07.07.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 07.07.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 07.07.2025 7. Date on which the file goes to the Bench Clerk 07.07.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… "