KARMDEEP FOUNDATION,AHMEDABAD V. THE CIT (EXEMPTION), AHMEDABAD

ITA 467/AHD/2024

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Karmadeep Foundation appealed against the decision of the Commissioner of Income-Tax (Exemptions), Ahmedabad, which had rejected their application for exemption under Section 80G of the Income Tax Act, 1961. The initial rejection was based on the absence of a valid order for registration under Section 12A/12AB of the Act, which is a prerequisite for approval under Section 80G(5). During the tribunal hearing, it was noted that the Foundation had subsequently obtained registration under Section 12AB, which was not considered in the initial decision. The tribunal decided to restore the case to the CIT(E) for a fresh evaluation in light of this new development.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25280 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. P. SINGH
• Assessee Lawyers: PRITESH L. SHAH
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 467/Ahd/2024 (Assessment Year: - NA) Karmadeep Foundation, E-8, Revati Tower, Ramdevnagar, Jodhpur Cross Roads, Satellite, Ahmedabad - 380015 [PAN : AAETK 5066 A Vs. Commissioner of Income-Tax (Exemptions), Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri Pritesh L. Shah, CA Respondent by: Shri A.P. Singh, CIT-DR Date of Hearing 16.01.2025 Date of Pronouncement 14.02.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay condoned 2. This appeal has been filed by the Assessee against the order of the learned Commissioner of Income-tax (Exemption), Ahmedabad (in short ‘the CIT(E)’) dated 28.05.2023, rejecting the application of the assessee under Section 80G(5) of the Income Tax Act, 1961 [hereinafter referred to as \"the Act\" for short]. 3. The solitary grievance raised by the assessee is as follows:- “The learned CIT Exemption, Ahmedabad erred in rejecting the application seeking the exemption under Section 80G of the Income Tax Act, 1961, such rejection is requested to be deleted.” ITA No. 467/Ahd/2024 Karmadeep Foundation Vs. CIT(E) Asst. Year : - - 2– 4. The brief facts of the case are that the assessee filed application for approval of the trust under Section 80G(5)(iii) of the Act in Form No. 10AB on 04.11.2022. Subsequently, the assessee was asked to furnish documents in response to the notice sent to the assessee regarding the activities carried out by the assessee-trust, which according to the Ld. CIT(E), as the mandatory provisions of the procedure for approval u/s 80G(5) of the Act. On perusal of the details available with Ld. CIT(E), he observed that the assessee has mentioned the date of incorporation/creation/registration of the trust as 05.03.2007 and the assessee had been granted order for provisional approval in Form No. 10AC issued on 28.05.2021 u/s 80G(5)(iv) of the Act for the period commencing from 08.05.2021 to AY 2024-25. The Ld. CIT(E) observed that as per section 80G(5)(iii) of the Act, the assessee was required to file application in Form No. 10AB at least six months prior to expiry of period of the provisional approval or within six months of commencement of its activities, whichever is earlier. The Ld. CIT(E), after considering the submissions of the assessee-trust, held that the approval u/s 80G(5) of the Act could not be granted for the reason that the trust does not have any valid order for registration u/s 12(1)(ac)(iii) of the Act in Form No. 10AD. He also held that valid registration u/s 12A/12AB of the Act is a prerequisite and in the absence of the same, approval u/s 80G(5) of the Act could not be granted to the assessee-trust. 5. Aggrieved by the order of the Ld. CIT(E), the assessee is now in appeal before the Tribunal. ITA No. 467/Ahd/2024 Karmadeep Foundation Vs. CIT(E) Asst. Year : - - 3– 6. At the time of hearing, Ld. AR submitted that the Ld. CIT(E) granted 12AB(1)(b) Registration vide order dated 20.01.2024 for the Assessment Years 2022-23 to 2026-27, which is placed on record at page no. 8 to 10 of the paper-book. Ld. DR could not controvert the factual submission made by the ld. Counsel for the assessee; however, submitted that the issue may be restored to the file of the Ld. CIT(E) for de-novo consideration. Accordingly, looking into the instant facts, the matter is restored to the file of Ld. CIT(E) for de-novo consideration, after giving due opportunity of hearing to the assessee, and thereafter pass order in accordance with law. 7. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 14.02.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 14/02/2025 btk आदेश की \u0007ितिलिप अ\rेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b\tथ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड\u001f फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "