LOK KALYAN VRUDDHASHRAM & CHARITABLE TRUST,SURAT V. CIT (EXEMPTION), AHMEDABAD

ITA 1122/SRT/2024

AI Insights

The case involves Lok Kalyan Vruddhashram & Charitable Trust, which appealed against the order of the Commissioner of Income-tax (Exemptions), Ahmedabad, rejecting their application for approval of fund under section 80G(5) of the Income Tax Act, 1961. The Trust, established in 2011 and registered under sections 12AA/12AB of the Act, failed to comply with a notice due to an email oversight by their consultant. The Tribunal considered the merits of the case and decided to give the Trust another opportunity to present their case before the CIT(E), emphasizing the need for the Trust to ensure timely compliance in the future.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29831 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Assessee Lawyers: SAPNESH R SHETH
• Keywords: Charitable institution

Judgement Text

" आयकर अपीलीय अिधकरण, सूरत Ɋायपीठ, सूरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1122/SRT/2024 (AY 2023-24) (Physical court hearing) Lok Kalyan Vruddhashram & Charitable Trust 208, Mahadev Nagar-1, Navagam, Dindoli, Surat-394 210 [PAN : AABTL 8969 L] बनाम Vs Commissioner of Income-tax (Exemption), Room No.609, 6th Floor, Aayakar Bhawan (Vejalpur), Near Sachin Tower, 100 Foot Ring Road, Anandnagar-Prahladnagar Road, Ahmedabad-380 015 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Sapnesh R Sheth, CA राजˢ की ओर से /Revenue by Shri Ravi Kant Gupta– CIT-DR सुनवाई की तारीख/Date of hearing 02.01.2025 उद ्घोषणा की तारीख/Date of pronouncement 02.01.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of Ld. Commissioner of Income-tax(Exemptions)-Ahmedabad [for short to as “Ld.CIT(E)] dated 22.10.2024 in rejecting approval of fund under section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Rival submission of both the parties heard and record perused. The Ld. Authorized Representative (Ld.AR) of the assessee submits that assessee is a charitable trust engaged in charitable activities. The assessee-trust was set up/created in 2011 and registered with Charitable Commissioner, Surat. The assessee having registration under section 12AA/12AB of the Act. The assessee-trust filed application for approval fund under section 80G(5) of the ITA No.1122/SRT/2024 (A.Y.23-24) Lok Kalyan Vruddhashram & Charitable Trust 2 Act on 16.05.2024 and furnished required details. The assessee could not make compliance to notice issued by Ld.CIT(E) as the e-mail provided in application for registration belonged to their consultant and he has not seen the e-mail, if any notice or notices were not served. The Ld.AR of the assessee fairly submits that one more opportunity may be given to contest the case on merit. The Ld. AR of the assessee submits that assessee has a good case on merit and is likely to succeeds if the application of assessee is considered on merit. He under takes on behalf of assessee to be more vigilant in future in making timely compliance. 3. On the other hand, Ld. Commissioner of Income-tax Departmental Representative (Ld.CIT-DR) for the Revenue though supported the order of Ld. CIT(E). In alternative submission, Ld. Sr-DR for the Revenue submits that assessee should be more vigilant in making timely compliance and not to seek adjournment without valid reason. The system has issued notice to the assessee as per the details provided by the assessee and now the assessee cannot take the plea the such email, on which the notices were served does not belong to them. 4. We have considered the rival submissions of both the parties and have gone through order of lower authorities carefully. We find that Ld.CIT(E) dismissed the application of assessee for want of documentary evidence about satisfaction of activities of institution and fulfilment of requisite conditions of clause-(i) to (iv) of Section 80G(5) of the Act. Considering the fact that Ld.CIT(E) dismissed the application for want of compliance, in our view, assessee deserves one more opportunity to contest its case on merit before ITA No.1122/SRT/2024 (A.Y.23-24) Lok Kalyan Vruddhashram & Charitable Trust 3 Ld.CIT(E) again. Therefore, we deem it appropriate to restore the appeal back to the file of Ld.CIT(E) to decide afresh in accordance with law after being heard to assessee. Needless to direct that before passing order afresh, the Ld.CIT(E) shall provide reasonable opportunity to the assessee. The assessee is also directed to be more vigilant and to make timely compliance of the notice issued by Ld.CIT(E). With these directions, the grounds of appeal of assessee is allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes in above terms. Order pronounced in the open court on 02/01/2025. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) लेखा सद˟/Accountant Member Ɋाियक सद˟/Judicial Member सूरत / Surat Dated: 02 /01/2025 Dkp Outsourcing Sr.P.S* आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to :  अपीलाथŎ/ The Appellant  ŮȑथŎ/ The Respondent  आयकर आयुƅ/ CIT  िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT  गाडŊ फाईल/ Guard File // True Copy // By order/आदेश से, सहायक पंजीकार आयकर अपीलीय अिधकरण, सूरत "