MOMIN SAMAJ FEDERATION,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1381/AHD/2025

AI Insights

The case involves Momin Samaj Federation, a charitable trust, which appealed against the order of the CIT (Exemption), Ahmedabad, rejecting their application for registration under Section 12A of the Income Tax Act, 1961. The CIT (Exemption) had rejected the application due to non-compliance with Rule 17A(2) of the Income Tax Rules, 1962, specifically the failure to furnish documentary evidence to establish the genuineness of the trust's activities and compliance with other relevant laws. The Tribunal noted that the applicant/appellant had not responded to the show cause notice without any genuine reason but decided to remand the matter for a thorough examination of the submitted documents and to provide an opportunity of hearing as per the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778769 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 30-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: VARISHUSEN MOMIN
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before Ms. Suchitra Kamble, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member Momin Samaj Federation C/401-402 Lotus Residency, Nr. Congress Bhavan, Paldi, Ahmedabad, Gujarat-380007 PAN: AACTM6412C (Appellant) Vs The CIT (Exemption), Ahmedabad (Respondent) Assessee by: Mr. Varishusen Momin, A.R. Revenue by: Shri Rignesh Das, CIT-D.R. Date of hearing : 15-10-2025 Date of pronouncement : 16-10-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 13-11- 2024 passed by CIT(Exemption), Ahmedabad. 2. The grounds of appeal are as under:- “Based on the facts and circumstances of the case, the grounds of appeal of the appellant are as follows: 1. Learned CIT(Exemption) has erred in rejecting the application made under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 in an arbitrary manner. 2. The Learned CIT(Exemption) erred in rejecting the application filed in Form 10AB without recording any finding on the genuineness of the appellant's activities ITA No. 1381/Ahd/2025 Printed from counselvise.com I.T.A No. 1381/Ahd/2025 Momin Samaj Federation 2 or considering the documents already submitted with the application. 3. Learned CIT(Exemption) has erred in not providing sufficient opportunity for the appellant to explain and submit the documentary evidence. 4. The appellant craves leave to add, alter, vary, omit, amend, or delete the above grounds of appeal at any time before, or at the time of, hearing of the appeal, so as to enable the Hon'ble Income-tax Appellate Tribunal (Appeals) to decide this appeal according to law.” 3. The applicant/appellant Momin Samaj Federation, is a charitable trust engaged in activities for the welfare of the public. The trust applied for registration under Section 12A of the Income Tax Act, 1961 by filing Form 10AB under sub-clause (iii) of clause (ac) of sub-Section (1) of Section 12A. The application was considered by the CIT(E), Ahmedabad and notices were issued on 27.08.2024 and 16.10.2024, seeking documentary evidence to substantiate the genuineness of activities. Due to certain in advertent circumstances, the applicant/appellant could not furnish the required documents within the stipulated time, nor was an adjournment sought. The applicant/appellant filed an application in Form 10AB along with all requisite documents in support of its claim. No separate reply was filed in response to the Show Cause Notice, as all relevant documents had already been submitted at the time of application. The CIT(E) rejected the application without examining the material on record and has not recorded any finding on the genuineness of the activities. The CIT(E) in the absence of the required documents, rejected the application for registration under Section 12A and also cancelled the provisional registration granted earlier. Printed from counselvise.com I.T.A No. 1381/Ahd/2025 Momin Samaj Federation 3 4. Being aggrieved by the rejection order dated 13.11.2024 passed by the CIT(E), the present appeal filed by the applicant/appellant belatedly for 150 days. But the reason given in the affidavit is that the trust did not regularly monitor the email ID, which led to an oversight of the communication received from the department. Thus, the delay on this reason is condoned. 5. The Ld. AR submitted that the failure to file documents was neither willful no intentional but occurred due to unavoidable circumstances. The Ld. AR further submitted that the rejection order dated 13.11.2024 primarily states that the applicant/appellant failed to comply with Rule 17A(2) of the Income Tax Rules, 1962 and did not furnish documentary evidence to establish: * The genuineness of activities of the trust * Whether the activities were in consonance with the objects of the trust * Compliance with other laws relevant for achieving the objectives of the trust. Thus, the Ld. AR submitted that the matter may be remanded back to the file of the CIT(E) for allowing the applicant/appellant to place on records the relevant the details and the CIT(E) should hear the applicant/appellant on merit as well as adjudicate the application as per law. 6. The Ld. DR vehemently oppose the ld. AR and relied upon the order of the CIT(E) stating that the applicant/appellant was given ample opportunity. Printed from counselvise.com I.T.A No. 1381/Ahd/2025 Momin Samaj Federation 4 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the applicant/appellant despite knowing about the show cause notice issued by the CIT(E), has not responded the same without any genuine reason. Therefore, it will be appropriate to direct the applicant/appellant to pay cost of Rs.5000/- to Prime Minister’s Welfare Fund within two weeks from the receipt of this order. The matter is remanded back to the file of the CIT(E) for proper verification of the details filed by the applicant / appellant and adjudicate the same as per Income Tax Act. Needless to say, the applicant/appellant be given opportunity of hearing by following principles of natural justice. The appeal of the applicant/appellant is partly allowed for statistical purpose. 8. In result, appeal of the applicant/appellant is partly allowed for statistical purpose. Order pronounced in the open court on 16-10-2025 Sd/- Sd/- (Makarand V. Mahadeokar) (Suchitra Kamble) Accountant Member Judicial Member Ahmedabad : Dated 16/10/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "