LOTHADA-PIPLANA-PADAVALA INDUSTRIAL ASSOCIATION,RAJKOT V. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), AHMEDABAD), AHMEDABAD

ITA 239/RJT/2024

AI Insights

The case involves the Lothada-Piplana-Padavala Industrial Association, which appealed against the orders of the Commissioner of Income Tax (Exemptions), Ahmedabad, rejecting their applications for registration under sections 12AB and 80G of the Income Tax Act, 1961. The appeals were initially delayed due to the assessee's reliance on an uncooperative accountant and the assessee's unfamiliarity with the online compliance system. The Tribunal found the reasons for the delay sufficient and allowed the appeals for statistical purposes, directing a re-examination of the applications by the Commissioner.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633493 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2025
• 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: SANJAY PUNGLIA; LD
• Assessee Lawyers: DARSHAK THAKKAR; LD
• Keywords: Condonation of delay
• Section: 12A; 80G

Judgement Text

"ITA NO.239/RJT/2024 LOTHADA -PIPLANA-PADAVALA INDUSTRIAL ASSOCATION 1 IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, AM. & DINESH MOHAN SINHA, JM आयकरअपीलसं./ITA No.239&240/RJT/2024 िनधाªरणवषª / Assessment Year: (2023-24) (Hybrid Hearing) Lothada-Piplana-Padavala industrial association, Shop No. 114, Silver Complex, Umiya Industrial Area, Rajkot Kotda Sangani Road, Rajkot 360021 Vs. The Commissioner of Income Tax (Exemptions), Room No. 609, Floor-6, Aayakar Bhawan (Vejalpur), Nr: Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad Öथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAECL0666Q (Appellant) (Respondent) Appellant by : Shri Darshak Thakkar, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT(DR) Date of Hearing : 26 /03 /2025 Date of Pronouncement : 09/ 06 /2025 आदेश / O R D E R PER DINESH MOHAN SINHA JM; Captioned appeal filed by assessee, directed against order passed by Commissioner of Income Tax (E) Ahmedabad, on application in form 10AB u/s 12A (1) (ac) (iii) of the income-tax Act. wherein the application filed by the assessee for approval u/s 12AB of the income-tax Act. was rejected on ITA NO.239/RJT/2024 LOTHADA -PIPLANA-PADAVALA INDUSTRIAL ASSOCATION 2 04-11-2023 and Application in Form 10AB under 80G (5) (iii) of the income-tax Act. was rejected on 24-11-2023 by Ld.CIT(E) Ahmedabad. 2. GROUNDS OF APPEALS, ITA NO. 239/Rjt/2024: - 1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. That the learned Commissioner of Income Tax (Exemptions), Ahmedabad has erred in law and on facts in refusing to grant registration u/s 12AB of the Income Tax Act,1961. 3. Your Honor’s appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal. GROUNDS OF APPEALS, ITA NO. 240/Rjt/2024: - 1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. That the learned Commissioner of Income Tax (Exemptions), Ahmedabad has erred in law and on facts in refusing to grant approval u/s 80GP of the Income Tax Act,1961. 3. Your Honor’s appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal. Since these two appeals filed by the same assessee are directed against the separate order passed by Ld. CIT (E) for different applications. Since the issue of rejection of application are same there for these two appeals have been heard together and consolidated order is being passed for the convenience and brevity. First we will adjudicate ITA NO. 239/Rjt/2024. Since both the appeals are filed on 19/04/2024. ITA No. 239/Rjt/2024 late by 109 days and ITA No. 240/Rjt/2024 late by 89 days respectively, That the reason for condonation of delay is same. The relevant para of the application is : ITA NO.239/RJT/2024 LOTHADA -PIPLANA-PADAVALA INDUSTRIAL ASSOCATION 3 Para No. 5: “I am a senior citizen and less educated and completely unaware about online system of compliance and e-mail tracking and for which I relied upon the accountant who could not timely inform me and has left the job which has resulted into delay in filing appeal before your honors which may please be condoned.” Para No. 6: “That the delay was not willful or deliberate and that the appeal documents are Bonafide. The substantial merits of the case justify condonation of delay.” The AR submitted that the assessee is senior citizen less educated and completely unaware about the online system of compliance and completely depend on the accountant for computer operation. That the accountants has non co-operated with the assessee. Hence the assessee could not reply to the notices issued by the department and prayed for an opportunity to be given to explain the case before Ld. CIT(E) The delay was not willful or deliberate and that the appeal documents are Bonafide. Substantial merits of the case justify condonation of the delay.” (i) On the contrary DR submitted and relied on the order of Ld. CIT(E) However Ld. DR has not objected to the prayer of the assessee. We have heard both the parties and perused all the material available on records. We note that the assessee could not established sufficient course for condonation of delay in filing the appeals. However, we impose a ITA NO.239/RJT/2024 LOTHADA -PIPLANA-PADAVALA INDUSTRIAL ASSOCATION 4 consolidated cost of Rs. 5000/- on the assessee and the same has to be deposited with Prime Minister Relief Fund within 10 days from today. In the interest of justice, we condone the delay in filing of the present appeals and both the appeals are heard on merit. The brief facts of the case in that ITA no. 239/Rjt/2024 the application was filed electronically on 08/05/2023 in form no. 12AB within the meaning of section 12A(1)(ac)(iii) income-tax of the Act 1961. The notices was issued to the assessee on 30/09/2023 & 11/10/2023 sent throw ITBA portal to furnish certain details/documents. The assessee has neither filed any submission nor sought any adjournment in this case in the absence of requisite detail, a present case decided on the basis of material available on records. The Ld. CIT(E) rejected the application of the assessee stating that 10. “The applicant/assessee has failed to file documentary evidences to enable me to satisfy about: i. Genuineness of the activities of the trust or institution. ii. That the activities of trust or institution are in consonance with the objects of the trust or institution. iii. That other laws material for the purpose of achieving objects are complied with. 11. In view of the above, the present application filed in Form No. 10AB u/s 12A (1) (ac)(iii) of the Act is rejected and provisional registration is also cancelled.” Feeling aggrieved by the order of Ld. CIT(E) the assessee has filed an appeal before us. ITA NO.239/RJT/2024 LOTHADA -PIPLANA-PADAVALA INDUSTRIAL ASSOCATION 5 (i) Ld. AR of the assessee filed written submission: “The director of the appellant is 68 years of age, a senior citizen and less educated and completely unaware about online systems of compliance and e-mail tracking and for which I relied upon the accountant who could not timely inform me and has left the job. (ii) On the contrary Ld. DR submitted that assessee has not submitted the documents before the authority, the assessee trusts a non-co-operative attitude in compliance with the notice issued by the department. We have heard both the parties and perused all the material available on records. We note that the Ld.CIT(E) has issued notices on 30/09/2023, 11/10/2023 asking for document in support of the appeal of registration the Act in order to know about the geniuses of the activities of the trust and also to verify the activities are in consonance with the object of the trust and it was also to ensur that purpose of achieving objects are complied with, but the assessee failed to comply with terms of the notice. That the assessee submitted before us. The reasons for non-compliance was that the assessee was compleately unaware about the online system of non-compliance. The Ld. AR of the assessee assured us about compliance to the notices issued by the Ld. CIT(E) considering the facts and circumstance of the case and in the interest of the justice. We restore the matter back with the file of the Ld. CIT(E) for De-novo adjudication of the application in form 10AB section 12A(1)(ac)(iii) of the income-tax Act. Assessee was directed to submitted the relevant document and evidence as required by Ld. CIT(E) if any. ITA NO.239/RJT/2024 LOTHADA -PIPLANA-PADAVALA INDUSTRIAL ASSOCATION 6 Now coming to ITA No. 240/RJT/2024. Since the facts circumstance of the case similar and the assessee failed to comply with the terms of notice. The ITA No. 240/Rjt/2024 is disposed of in the above terms. In combined result the appeal filed by the assessee in ITA No. 239/Rjt/2024 &240/Rjt/2024 are allowed for statical purpose. Order pronounced in the open court on 09/ 06/2025. Sd/- Sd/- (Dr. A.L. SAINI) (DINESH MOHAN SINHA) ACCOUNT MEMBER JUDICAL MEMBER Rajkot िदनांक/ Date: 09/06 /2025 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "