Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 361341 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
22-05-2025
Appeal Filed By
Assessee
Order Result
Allowed
Assessment Year
misc
Judgement Text
" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.114/Ahd/2025 (Assessment Year: N.A.) Lions Club of Gandhinagar Femina, Plot No. 858/1, Opposite Church, Sector No. – 8/C, Gujarat-382007 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AACAL4769L] (Appellant) .. (Respondent) Appellant by : Shri Manoj Harivadan Lekinwala, A.R. Respondent by: Shri Kamlesh Makwana, CIT DR Date of Hearing 22.04.2025 Date of Pronouncement 22.05.2025 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 (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 21.11.2024. 2. The Assessee has taken the following grounds of appeal:- “1. Trust is doing charitable activities since 23-07-2000. Trust is doing educations, health related, youth development, environmental activities etc. since incorporation. Trust has been granted approval under section 80G as per order dated 04-04-2022. Trust has applied for permanent approval under section 80G. Trust has requested online for adjournment on 13-11-2024 for given submission upto 28-11-2024 but rejection order is passed on 21-11-2024 so opportunity for giving details not available to the trust. The Act of CIT (Exemption) is against principal of natural justice so we are filing this appeal. We may be allowed to add any other ground of appeal.” 3. The brief facts of the case are that the assessee / applicant trust filed application for approval of trust under Section 80G(5) of the Act. However, Ld. CIT(E) observed that despite issuance of notices of hearing, the details / documents called for by his office were not submitted by the assessee / applicant trust. Accordingly, the Ld. CIT(E) ITA No. 114/Ahd/2025 Lions Club of Gandhinagar Femina vs. CIT(E) Asst. Year –N.A. - 2– rejected the application for grant of approval under Section 80G(5) of the Act 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 aforesaid order passed by Ld. CIT(E) rejecting the grant of approval under Section 80G(5) of the Act. 5. Before us, the Counsel for the assessee submitted that the order has been passed by the Ld. CIT(E) in gross violation in the principles of natural justice. The Counsel for the assessee submitted that only two notices were issued by Ld. CIT(E) and thereafter, without granting sufficient opportunity of hearing, the application for grant of registration filed by the assessee was rejected. The Counsel for the assessee submitted that if given an opportunity of hearing, the assessee / applicant trust shall file all necessary details / documents in support of it’s case, to the satisfaction of Ld. CIT(E). 6. On going through the facts of the instant case, in the interest of justice, the matter is restored to the file of Ld. CIT(E) for de-novo consideration. However, we make it clear that in case there is any non- compliance on the part of the assessee / applicant trust in response to notices issued by Ld. CIT(E), then the CIT(E) would be at liberty to ITA No. 114/Ahd/2025 Lions Club of Gandhinagar Femina vs. CIT(E) Asst. Year –N.A. - 3– pass appropriate orders, on the basis of material available on record, in accordance with law. 7. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 22/05/2025 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 22/05/2025 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 16.05.2025 2. Date on which the typed draft is placed before the Dictating Member 19.05.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 19.05.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement .05.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 22.05.2025 7. Date on which the file goes to the Bench Clerk 22.05.2025 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…………………………………… "
AI Insights
The case involves the Lions Club of Gandhinagar Femina, a trust engaged in various charitable activities, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad. The CIT(E) had rejected the trust's application for permanent approval under Section 80G(5) of the Income Tax Act, citing non-submission of required documents despite multiple notices. The trust argued that the rejection was in violation of the principles of natural justice as it was not given sufficient opportunity to present its case. The Tribunal found merit in the trust's appeal and restored the matter for re-evaluation, ensuring the trust is given a fair opportunity to submit the necessary documents.
