M V G JAHER DHARMIK TRUST,KHEDA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1825/AHD/2024

AI Insights

The case involves MVG Jaher Dharmik Trust appealing against the decision of the Commissioner of Income Tax (Exemption), who had dismissed the trust's application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The dismissal was based on the absence of a 'provisional registration' order, which is a prerequisite for the application under the cited section. The Tribunal found that the CIT(E) had not provided adequate opportunity for a hearing, thus violating principles of natural justice, and decided to restore the matter for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314396 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Section 12A(1)(ac)(iii) of the Act, Section 12A(1)(ac)(vi) of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHPENDRA SINGH CHAUDHARY
• Assessee Lawyers: JAINISH PARIKH
• Keywords: Principle of natural justice
• Section: 12AA; 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER I.T.A. No.1825/Ahd/2024 (Assessment Year: N.A.) M V G Jaher Dharmik Trust, Ground Floor, B/S. Shantinanthji Derasar, Vadali B.O., Alampur, Kheda, Gujarat-387620 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAATM6586D] (Appellant) .. (Respondent) Appellant by : Shri Jainish Parikh, A.R. Respondent by: Shri Pushpendra Singh Chaudhary, CIT DR Date of Hearing 06.05.2025 Date of Pronouncement 08.05.2025 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 18.06.2024. 2. At the outset, we observe that the appeal is time barred by 63 days. The delay of 63 days is condoned on due consideration of facts and owing to smallness of delay causing no perceptible prejudice to other side. 3. The Assessee has taken the following grounds of appeal:- “1. The order passed by CIT (Exemption) for rejecting 12AA if bad in law and deserved to be uncalled for. 2. The appellant craves to reserve his right to add, alter, amend or delete any ground of appeal during the course of hearing.” ITA No. 1825/Ahd/2024 MVG Jaher Dharmik Trust vs. CIT(E) Asst.Year –N.A. - 2– 4. The brief facts of the case are that the assessee / applicant trust filed application for registration under Section 12A(1)(ac)(iii) of the Act. However, the Ld. CIT(E) dismissed the application for registration on the ground that the aforesaid section is applicable only in case when the trust or institution has been “provisionally registered” under sub clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act. However, in this case neither such order of “provisional registration” has been submitted by the applicant trust nor it is found to be attached with Form No. 10AB, filed by the assessee / applicant trust. Accordingly, in absence of such provisional registration order Section 12A(1)(ac)(iii) of the Act, the application for registration under Section 12A was held by Ld. CIT(E) to be “premature” and “non- maintainable”. Accordingly, the application for grant of registration was dismissed by Ld. CIT(E). 5. Before us, the Counsel for the assessee submitted that at the time of filing of application for grant of registration, the assessee / applicant trust inadvertently filed application in sub-clause (iii) of Section 12A(1)(ac) instead of sub-clause (i) to Section 12A(1)(ac) of the Act. However, the Ld. CIT(E), without giving adequate opportunity of hearing to the assessee and giving only one date of hearing (i.e. 25.04.2024), dismissed the application filed by the assessee / applicant trust, against the principles of natural justice. Accordingly, the Counsel for the assessee submitted that the matter may be restored to the file of Ld. CIT(E) for de-novo consideration, in the interest of justice. 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 ITA No. 1825/Ahd/2024 MVG Jaher Dharmik Trust vs. CIT(E) Asst.Year –N.A. - 3– consideration, after giving due opportunity of hearing to the assessee / applicant trust to present it’s case on merits. 7. In the result, the appeal of the assesse is allowed for statistical purposes. This Order pronounced in Open Court on 08/05/2025 Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 08/05/2025 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 06.05.2025 2. Date on which the typed draft is placed before the Dictating Member 07.05.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 07.05.2025 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 08.05.2025 7. Date on which the file goes to the Bench Clerk 08.05.2025 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…………………………………… "