KUNTHUNATH JAIN DEHRASAR,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 464/AHD/2025

AI Insights

The case involves Kunthunath Jain Dehrasar, a charitable trust, appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied their registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The denial was based on the perceived lack of genuineness of the trust's activities and non-compliance with procedural requirements during the registration process. The trust argued that health issues of the main managing trustee, who handles routine matters, led to their inability to comply with the CIT(E)'s requirements. The Tribunal, while not fully convinced by the trust's explanation, decided to allow another opportunity for compliance, conditional on the payment of a cost to a national relief fund.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653032 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• 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
• Keywords: Set aside; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Ms. Suchitra Kamble, Judicial Member, And And Shri Narendra Prasad Sinha, Accountant Member Kunthunath Jain Dehrasar Trustee 0, Ghadiyali Pole, Jain Derasar, Mandvi, Vadodara, Gujarat-390 001. PAN: AABTK1302J (Appellant) Vs The CIT (Exemption), Ahmedabad. (Respondent) Assessee Represented: Shri Manish J Shah, A.R. & Revenue Represented: Shri Rignesh Das, CIT-DR Date of hearing : 12-06-2025 Date of pronouncement : 18-06-2025 आदेश/ORDER Per: Narendra Prasad Sinha, Accountant Member: - This appeal is filed by the Assessee as against the order dated 13.11.2024 passed by the Commissioner of Income Tax (Exemption), (in short ‘the CIT(E)’) Ahmedabad denying registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). ITA No. 464/Ahd/2025 I.T.A No. 464/Ahd/2025 Page No Kunthunath Jain Dehrasar vs. CIT(E) 2 2. There was a delay of 28 days in filing of this appeal. The assessee has filed an affidavit explaining the reason for delay. It is submitted that the delay was due to medical illness of Sh. Ashvin Ashok Chandra Shah, Trustee & Treasurer of the assessee trust, who was suffering from Ischemic Heart Diseases. He was under medical treatment during the concerned period and a copy of the medical certificate is also enclosed with the affidavit. Considering the explanation of the assessee, the delay in filing the appeal is condoned. 3. The assessee has taken the following grounds in this appeal: “1. The Learned Commissioner of Income Tax (Exemptions) [CIT(E)] erred in law and on facts in rejecting the application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961, without properly appreciating the facts and law of the case. 2. The main Managing Trustees, who handles the normal routine matters, has been suffering from health issues, including heart surgery, and due to age-related issues, there was a delay in the filing of the appeal and responding to notices issued by the Office. 3. The appellant craves liberty to add, amend, or alter any or all of the grounds of appeal on or before the date of hearing.” 4. Brief facts of the case is that the assessee is a charitable Trust and had filed registration application u/s 12A(1)(ac)(iii) of the Act in Form 10AB along with supporting documents. The Ld. CIT(E) issued hearing notice on 04/09/2024 and on 24/10/2024 via email to furnish certain details/documents for granting registration. The assessee neither filed any submissions nor sought for any adjournments. Therefore, Ld. CIT(E) denied registration u/s. 12A of the Act, as he was not satisfied about genuineness of the activities I.T.A No. 464/Ahd/2025 Page No Kunthunath Jain Dehrasar vs. CIT(E) 3 of the trust and that the activities of the trust were in consonance with the objects of the trust. 5. Sh. Manish Shah, the Ld. AR of the assessee submitted that the main managing trustee, who handles the normal routine matter was suffering from age-related health issues, hence no compliance could be made before the ld. CIT(E). He explained that an adjournment was sought on the first occasion but thereafter no compliance could be made by the assessee. The Ld. AR submitted that the assessee trust is prepared to file all required documents before Ld. CIT(E) for registration and, therefore, requested to set aside the matter back to the file of Ld. CIT(E) for allowing another opportunity to the assessee. 6. Per contra, the Ld. CIT-DR supported the order of the Ld. CIT(E). He, however, had no objection if the matter was set aside to the Ld. CIT(E) for allowing another opportunity to the assessee. 7. We have considered the submissions of the assessee. We are not convinced with the explanation of the assessee for the non- compliance before the Ld. CIT(E). The assessee had made an adjournment request on 18th September, 2024 and was thus aware of the proceedings before the CIT(E) and also about the details and documents as sought by him. Under the circumstances, no explanation has been given as to why compliance was not made before him on subsequent date. No explanation has forthcome for the non-compliance before the CIT(E) after the adjournment application of the assessee. Therefore, we deem it proper to impose I.T.A No. 464/Ahd/2025 Page No Kunthunath Jain Dehrasar vs. CIT(E) 4 a cost of Rs. 5,000/- on the assessee, payable to the Prime Minister National Relief Fund within two weeks from the date of receipt of copy of this order. On production of receipt for payment of the cost, the Ld. CIT(E) is directed to give one more opportunity of hearing to the assessee for registration u/s 12A(1)(ac)(iii) of the Act in accordance with the provisions of law. The assessee is also directed to comply before the Ld. CIT(E) in the course of set aside proceeding and not to seek adjournment without any pressing reason. 8. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 18-06-2025 Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 18/06/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0013य अ\u0014धकरण, अहमदाबाद "