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

ITA 1382/AHD/2025

AI Insights

The case involves the Momin Samaj Federation appealing against the decision of the Commissioner of Income Tax (Exemption), which had rejected their application for approval under Section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was primarily due to the absence of a valid registration under Section 12A, which is a prerequisite for obtaining approval under Section 80G(5). The Tribunal noted that the matter concerning the registration under Section 12A was already set aside to the Commissioner by a previous order. Consequently, the Tribunal decided to set aside the current matter as well, directing the Commissioner to re-evaluate the application for approval under Section 80G(5) following the decision on the Section 12A registration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822251 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 30-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: VARISHUSEN MOMIN
• Keywords: Set aside
• Section: 12A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH, AHMEDABAD BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No.1382/Ahd/2025 Momin Samaj Federation, C/401-402, Lotus Residency, Nr. Congresh Bhavan, Paldi, Ahmedabad – 380 007. (Gujarat) [PAN – AACTM 6412 C] Vs. Commissioner of Income Tax (Exemption), Room No.609, Floor-6, Aayakar Bhawan (Vejalpur), Nr. Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad – 38015. (Gujarat). (Appellant) (Respondent) Assessee by Shri Varishusen Momin, AR Revenue by Shri Rignesh Das, CIT-DR Date of Hearing 16.12.2025 Date of Pronouncement 22.12.2025 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Ahmedabad (in short “the CIT(E)”) dated 15.11.2024, rejecting the application of the assessee for approval under Section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. There was a delay of 150 days in filing of this appeal. The assessee has filed an affidavit explaining the reason for delay. It is submitted that the trustees were not regular in monitoring the e-mail id. and could not timely access the order of the Ld. CIT(E), rejecting the application of the Printed from counselvise.com ITA No.1382/Ahd/2025 Momin Samaj Federation vs CIT(E) Page 2 of 4 assessee. As a result, there was delay in filing of the present appeal. Though we are not convinced with the explanation of the assessee, considering the merits of the case, we condone the delay in filing this appeal. 3. The brief facts of the case are that the assessee had filed an application in Form No.10AB for approval under Section 80G(5)(iii) of the Act. The Ld. CIT(E) had rejected the application for the reason that the assessee was not having any valid order for registration/approval under Section 12A/10(23C) of the Act which was a pre-requisite for grant of approval under Section 80G(5) of the Act. Therefore, the application of the assessee was rejected vide the impugned order. 4. Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal: - “1. Learned CIT(Exemption) has erred in rejecting the application made under section 80G(5)(ii) 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 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.” 5. Shri Varishusen Momin, Ld. AR of the assessee, submitted that the assessee had filed an appeal against the order dated 13.04.2024 passed by the CIT(E), rejecting the application of the assessee for registration of Printed from counselvise.com ITA No.1382/Ahd/2025 Momin Samaj Federation vs CIT(E) Page 3 of 4 the Trust under Section 12A of the Act. The said matter was decided by the Co-ordinate Bench of this Tribunal in ITA No.1381/Ahd/2025 dated 16.10.2025 whereby the matter was remanded back to the file of the Ld. CIT(E) for proper verification of the details filed by the assessee and to adjudicate the matter afresh. The Ld. AR submitted that since the matter regarding registration of the Trust u/s 12A of the Act was set aside to the file of Ld. CIT(E), the present matter in respect of approval under Section 80G(5) of the Act, may also be restored to the file of the Ld. CIT(E). 6. Per contra, Shri Rignesh Das, Ld. CIT-DR had no objection if the matter was set aside to the file of the Ld. CIT(E) with a direction to re- decide the approval under Section 80G(5) of the Act, after first adjudicating the assessee’s application for registration under Section 12A of the Act. 7. We have considered the request of the assessee. It is found that the Ld. CIT(E) had rejected the application for approval under Section 80G(5) of the Act only for the reason that the assessee was not having a valid registration under Section 12A of the Act, which was a pre-requisite for granting approval under Section 80G(5) of the Act. As per the facts brought on record, the assessee’s application for registration under Section 12A of the Act was earlier rejected by the Ld. CIT(E) and the Co- ordinate Bench of this Tribunal vide order in ITA No.1381/Ahd/2025 dated 16.10.2025 had set aside that matter to the file of the Ld. CIT(E). Since the issue of registration under Section 12A of the Act is already pending before the Ld. CIT(E), we deem it proper to set aside the present matter also to the file of the Ld. CIT(E) with direction to re-adjudicate the assessee’s application for approval under Section 80G(5) of the Act, after Printed from counselvise.com ITA No.1382/Ahd/2025 Momin Samaj Federation vs CIT(E) Page 4 of 4 first deciding the assessee’s application for registration under Section 12A of the Act. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on this 22nd December, 2025. Sd/- Sd/- (T.R. SENTHIL KUMAR) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Ahmedabad, the 22nd December, 2025 PBN/* Copies to: (1) The appellant (2) The respondent (3) The PCIT (4) The CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPYE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad Printed from counselvise.com "