MADHAV SHAKTI CHARITABLE TRUST,BHAVNAGAR V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2014/AHD/2024

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Madhav Shakti Charitable Trust appealed against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, which had rejected their application for registration under Section 80G of the Income Tax Act. The trust had initially received provisional registration but failed to comply with subsequent documentation requests, leading to the rejection of their application. The tribunal found that the trust's non-compliance was inadvertent and allowed the appeal, restoring the matter for re-evaluation by the CIT(E).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25194 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. NANDAKUMAR
• Assessee Lawyers: MANOJKUMAR GOHIL
• Keywords: Charitable institution
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.2014/Ahd/2024 (Assessment Year: N.A.) Madhav Shakti Charitable Trust, Adharsh Complex, Basement, Jail Road, Bhavnagar, Gujarat-364001 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAFTM4794C] (Appellant) .. (Respondent) Appellant by : Shri Manojkumar Gohil, A.R. Respondent by: Shri V. Nandakumar, CIT DR Date of Hearing 26.02.2025 Date of Pronouncement 07.03.2025 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 22.10.2024. 2. The assessee has raised the following grounds of appeal: “1. Learned CIT(E) has erred in law and on facts of the case in passing the impugned order without giving proper attention on documents submitted. 2. Learned CIT(E) has erred in law and on facts of the case in rejection the provisional registration of the Appellant u/s. 80G of the Act. 3. Your appellant may be allowed to add, amend, alter or raise additional grounds of appeal.” 3. The brief facts of the case are that the assessee / applicant trust is a charitable trust registered under the Bombay Public Trust Act, 1950 on 15.11.2017. The assessee / applicant applied for provisional registration under Section 80G of the Act and got provisional registration. Thereafter, the applicant / assessee trust applied for regular registration or approval in ITA No. 2014/Ahd/2024 Madhav Shakti Charitable Trust vs. CIT(E) Asst.Year –N.A. - 2– Form 10AB on 22.05.2024. On going through the application filed by the assessee / applicant trust, the Ld. CIT(E) asked the assessee / applicant trust to submit certain details / documents vide notices dated 02.08.2024 and 01.10.2024. However, Ld. CIT(E) noted that the assessee / applicant trust neither filed any submission nor sought any adjournment in the case. Accordingly, Ld. CIT(E) dismissed the application for registration under Section 80G of the Act with the following observations: “7. As discussed above, the applicant/assessee 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), dismissing the application for grant of registration under Section 80G of the Act. 5. Before us, the Counsel for the assessee / applicant trust admitted that there was inadvertent non-compliance on part of the trust, since it did not look into it’s email and it was only later that the trust realised that there was non-compliance on it’s part, when the order rejecting the application filed by the assessee / applicant trust was received. The Counsel for the assessee submitted that alongwith Form No. 10AB, the assessee / applicant trust had filed certain details like trust deed, trust registration certificate, certificate of registration under Section 12A of the Act and Audit Report for the period between 31.03.2021 to 31.03.2023. However, while rejecting the application for grant of registration under Section 80G ITA No. 2014/Ahd/2024 Madhav Shakti Charitable Trust vs. CIT(E) Asst.Year –N.A. - 3– of the Act, none of the aforesaid documents were considered by Ld. CIT(E). The Counsel for the assessee requested that in the interest of justice, the matter may be restored to the file of Ld. CIT(E) for de-novo consideration and the assessee / applicant trust shall diligently and promptly comply with all notices of hearing issued by Ld. CIT(E) and shall file all details as called for in a timely manner. 6. In response, Ld. D.R. also did not object to the matter being restored to the file of Ld. CIT(E) for de-novo consideration, in the interest of justice. 7. We have heard the rival contentions and perused the material on record. 8. In the interest of justice, the matter is being restored to the file of Ld. CIT(E) for de-novo consideration. In case there is further non- compliance on the part of the assessee / applicant trust in responding to notices issued by the Ld. CIT(E), then he would be at liberty to pass appropriate orders on the basis of material available on record. 9. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 07/03/2025 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 07/03/2025 TANMAY, Sr. PS TRUE COPY ITA No. 2014/Ahd/2024 Madhav Shakti Charitable Trust vs. CIT(E) Asst.Year –N.A. - 4– 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 26.02.2025 2. Date on which the typed draft is placed before the Dictating Member 26.02.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 28.02.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 07.03.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 07.03.2025 7. Date on which the file goes to the Bench Clerk 07.03.2025 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…………………………………… "