MAHILA EKTA VIKAS PARISAD,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 142/AHD/2025

AI Insights

The case involves Mahila Ekta Vikas Parishad, a charitable trust, which appealed against the decision of the CIT (Exemption), Ahmedabad, rejecting their application for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The CIT (Exemption) had rejected the application due to non-compliance with the conditions laid down in section 80G(5) and failure to establish the genuineness of the trust's activities. The Tribunal found that the trust had a long-standing charitable history and was registered under section 12AB(1)(b) of the Income Tax Act, 1961. The Tribunal noted a communication lapse between the trust and their accountant, which led to the non-compliance with the CIT(Exemption)'s notices. Considering the additional evidence provided by the trust and the lack of objection from the Departmental Representative, the Tribunal decided to remand the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652896 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: SHRTI PRITESH L. SHAH
• Keywords: Set aside; Opportunity of being heard; Additional evidence; Principle of natural justice; Competent authority; Charitable institution
• Section: 80G

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘C’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD ] ] BEFORE MS.SUCHITRA R. KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V.MAHADEOKAR, ACCOUNTANT MEMBER ITA No.142/Ahd/2025 Asstt.Year :- Mahila Ekta Vikas Parishad 3, Jivankala Shopping Centre Jivarajpark Ahmedabad PAN : AABTM 1425 C Vs. The CIT (Exemption) Vejalpur Ahmedabad. (Applicant) (Responent) Assessee by : Shrti Pritesh L. Shah, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 18/06/2025 घोषणा की तारीख /Date of Pronouncement: 19/06/2025 आदेश आदेश आदेश आदेश/O R D E R PER MAKARAND V.MAHADEOKAR, AM: This appeal filed by the assessee is directed against the order passed by the Ld. Commissioner of Income-tax (Exemption), Ahmedabad [hereinafter referred to as \"CIT(E)\"] dated 21.11.2024, whereby the application filed by the assessee trust seeking approval under section 80G(5)(iii) of the Income- tax Act, 1961 [hereinafter referred to as \"the Act\"] was rejected and the provisional approval earlier granted was cancelled. ITA No.142 /Ahd/2025 2 Facts in Brief 2. The assessee is a charitable trust established in 1991, engaged in the activities of upliftment of women, khadi and cottage industries, education, research, forest preservation, village reforms, children and women welfare, and social awareness programs. It filed an application in Form No. 10AB on 21.06.2024 for approval under section 80G(5)(iii). Notices were issued by the office of CIT(Exemption) on 05.10.2024 and 08.11.2024, fixing hearing on 21.10.2024 and seeking submission of details by 14.11.2024. However, no compliance was made. The CIT(E), accordingly, rejected the application on 21.11.2024, citing failure to establish genuineness of activities and non-compliance with conditions laid down in clauses (i) to (v) of section 80G(5) of the Act. 3. Aggrieved by the order of CIT(E), the assessee is in appeal before us raising following grounds of appeal: 1. The learned CIT (Exemption), Ahmedabad erred in not granting the adequate opportunity being heard / giving submission, such opportunity is requested to be deleted. 2. The learned CIT (Exemption), Ahmedabad erred in rejecting the Application seeking the exemption under section 80G of the Income Tax Act, 1961, such rejection is requested to be deleted. 4. During the course of hearing, the learned Authorised Representative submitted that the assessee trust has a long- standing charitable history since 1991 and is duly registered under section 12AB(1)(b) of the Income-tax Act, 1961, as per the order dated 15.02.2024 issued by the CIT(Exemption), ITA No.142 /Ahd/2025 3 Ahmedabad, which is valid for the assessment years 2022–23 to 2026–27. It was explained that the responsibility for handling departmental communications, including submission of documents in response to notices, was entirely entrusted to a Chartered Accountant. However, due to a bona fide misunderstanding, the Chartered Accountant failed to act on the notices issued by the CIT(Exemption), mistakenly assuming that the trustees would forward the relevant communication. The trustees, meanwhile, were actively involved in executing the trust’s charitable objectives on the ground and remained unaware of the lapse in compliance until the receipt of the rejection order. Upon learning of the rejection, the trustees immediately took corrective steps and have now furnished an affidavit explaining the circumstances, along with an application for condonation of the lapse and a compilation of additional evidences, which have been submitted in Paper Book No. 2. In light of the above facts and in the interest of natural justice, the learned Authorised Representative prayed that the matter may be restored to the file of the CIT(E), for a fresh decision on merits after affording the assessee an opportunity to present the requisite documents and explanations. 5. The learned Departmental Representative, upon being confronted with the facts and the assessee's request for remand, did not raise any serious objection to the matter being restored to the file of the CIT(E) for fresh adjudication. ITA No.142 /Ahd/2025 4 6. We have carefully considered the rival contentions and perused the material available on record. The assessee's application for approval under section 80G(5)(iii) of the Act was rejected by the learned CIT(E), primarily on the ground that the assessee failed to furnish the requisite documents and did not establish the genuineness of its activities. From the material placed before us, we note that the assessee is a registered charitable trust and has been granted registration under section 12AB(1)(b) of the Income-tax Act, 1961, vide order dated 15.02.2024, which is valid for the assessment years 2022–23 to 2026–27. The grant of registration under section 12AB reflects prima facie satisfaction of the competent authority with regard to the charitable nature of the trust's objects and activities. It is further submitted that the non-compliance with the notices issued by the CIT(Exemption) on 05.10.2024 and 08.11.2024 occurred due to a bona fide communication lapse between the trustees and the accountant engaged to handle the departmental matters. This explanation is supported by a sworn affidavit of the trustee placed on record. The assessee has now filed a detailed Paper Book No. 2 comprising audited financial statements for A.Ys. 2021–22 to 2023–24, trust deed, registration certificates, donor list, bank statements, PAN and Aadhaar of trustees, earlier 80G registration, and utility bills, along with an application dated 09.05.2025 for admission of these additional evidences. These documents are crucial for proper adjudication of the issue as they go to the root of the assessee’s eligibility under section 80G(5). ITA No.142 /Ahd/2025 5 7. Considering the comprehensive documentary support now furnished, and the fact that the learned Departmental Representative has not objected to the remand, we are of the considered opinion that the assessee deserves one more opportunity to present its case. Accordingly, we set aside the impugned order and restore the matter to the file of the CIT(Exemption), Ahmedabad, with a direction to examine the application for approval under section 80G(5) afresh, after considering the additional evidences on record and after affording adequate opportunity of being heard to the assessee. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Court on 19th June, 2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA R. KAMBLE) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER Ahmedabad, dated 19/06/2025 vk* "