MORRYS FOUNDATION ,GANDHINAGAR V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1963/AHD/2024

AI Insights

Morrys Foundation filed appeals against the orders of the CIT(E) which rejected their applications for registration under Section 12AB and approval under Section 80G(5) of the Income Tax Act, 1961. The CIT(E) had primarily rejected these applications due to them being filed beyond the prescribed time limit and the absence of relevant documentary evidence during the assessment proceedings. The Tribunal noted the procedural challenges acknowledged by the CBDT in Circular No. 07/2024, which extended the due date for filing Form No. 10A/10AB. Considering these factors and the absence of objections from the Departmental Representative, the Tribunal decided to set aside the CIT(E)'s orders and remand the matters for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39172 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. NANDAKUMAR
• Assessee Lawyers: SUCHIT PATEL
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Reasonable cause; Corroborative evidences
• Section: 12AA

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ “बी“, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD सु\u0017ी सुिच\u0019ा का \u001aले, \u0012ा ियक सद\u001c एवं \u0017ी मकरंद वसंत महा देवकर, लेखा सद\u001c क े सम\"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA Nos. 1962/Ahd/2024 & 1963/Ahd/2024 िनधा \u0010रण वष\u0010 /Assessment Year : - Morrys Foundation SF-203, Plot No.R-1, K. Road, Nr. New Green C, Sector-26, Nr.Tata Chowkdi Gandhinagar – 382 028 बनाम/ v/s. The CIT (Exemption) Anandnagar-Prahladnagar Road Ahmedabad – 380 015 \u0014थायी लेखा सं./PAN: AAQCM 3419 G अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee by : Shri Suchit Patel, AR Revenue by : Shri V. Nandakumar, CIT-DR सुनवाई की तारीख/Date of Hearing : 13/02/2025 घोषणा की तारीख /Date of Pronouncement: 14/02/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: Both these appeals have been filed by the assessee against the separate orders of the Commissioner of Income Tax (Exemptions), Ahmedabad [hereinafter referred to as “CIT(E)”] dated 05.04.2024 and 03.04.2024, rejecting the assessee’s applications for registration under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) and approval under Section 80G(5) of the Act respectively. ITA Nos.1962 & 1963/Ahd/2024 Morrys Foundation vs. CIT (E) 2 Condonation of delay 2. The appeals were delayed beyond the prescribed time limit. The assessee has filed an affidavit for condonation of delay, citing that the delay was due to failure to check emails regularly, lack of awareness regarding the procedural requirement for filing Form 10AB of the Act, and the medical condition of the trustee. The Departmental Representative (DR) has not raised any objections against the condonation of delay. Considering the facts and circumstances, and in the interest of justice, we find that the assessee was prevented by a reasonable cause from filing the appeal within the stipulated time. Therefore, we condone the delay and admit the appeals for adjudication. Facts of the Case 3. The CIT(E) rejected the applications for registration under Section 12AB and approval under Section 80G(5) of the Act, primarily on the grounds that the applications were filed beyond the prescribed time limit, and the assessee failed to submit relevant documentary evidence within the assessment proceedings. 4. Aggrieved by the order of CIT(E) the assessee is in appeals with following grounds of appeal(s): ITA No. 1963/Ahd/2024 1. The Learned CIT (Exemption) erred in fact and law in rejecting the approval under Section 12AA of the Income Tax Act. 2. Your appellant prays for appropriate relief on the above grounds of appeal. ITA Nos.1962 & 1963/Ahd/2024 Morrys Foundation vs. CIT (E) 3 3. Your appellant craves leave to add, alter, amend, substitute, or withdraw any of the grounds of appeal stated hereinabove. ITA No. 1962/Ahd/2024 1. The Learned CIT (Exemption) erred in fact and law in rejecting the approval under Section 80G(5) of the Income Tax Act. 2. Your appellant prays for appropriate relief on the above grounds of appeal. 3. Your appellant craves leave to add, alter, amend, substitute, or withdraw any of the grounds of appeal stated hereinabove. 5. During the course of hearing before us the assessee submitted a paper book containing supporting documents, including: i) Supporting evidence of expenses incurred for charitable activities; ii) Documentary proof of activities carried out by the trust; iii) Bank statements; and iv) Audit reports and income tax returns for FY 2022-23 and FY 2023- 24. 5.1. Furthermore, Circular No. 07/2024 dated 25.04.2024, issued by the Central Board of Direct Taxes (CBDT), has extended the due date for filing Form No. 10A/10AB to address the practical difficulties faced by taxpayers and stakeholders. This relaxation acknowledges the procedural challenges that taxpayers have encountered. In light of this beneficial circular, the assessee’s delayed filing of Form 10AB needs to be reconsidered by the CIT(E). 6. The Departmental Representative (DR) has not raised any objections to the matter being restored to the CIT(E) for fresh adjudication. Considering the totality of the facts, we are of the view that the ends of justice would be met if the matter is restored to the file of CIT(E) for fresh adjudication. The ITA Nos.1962 & 1963/Ahd/2024 Morrys Foundation vs. CIT (E) 4 CIT(E) is directed to examine the evidence submitted by the assessee and decide the matter afresh, after providing due opportunity of being heard. 6.1. In view of the above, we set aside the impugned orders of the CIT(E) and restore the matters back to his file for fresh adjudication in accordance with the law. The assessee is directed to comply with any further requisitions by the CIT(E) and submit the necessary documents in support of its claims. 7. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the Open Court on 14th February, 2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 14/02/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(E)-Ahmedabad 5. िवभागीय #ितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad "