NALANDA EDUCATION TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2194/AHD/2024

AI Insights

The case involves the Nalanda Education Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected the trust's application for registration under Section 12AB of the Income Tax Act, 1961. The rejection was initially due to the trust's non-compliance with multiple notices requesting documentation to verify the genuineness of its activities. The trust argued that the non-compliance was due to their Chartered Accountant's failure to communicate the notices, which was accepted as a valid reason by the Tribunal, leading to the setting aside of the CIT's decision and allowing the trust another opportunity to comply.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473801 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATHVI RAJ MEENA
• Assessee Lawyers: PAMIL H SHAH
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 2194/Ahd/2024 (Ǔनधा[रण वष[ / Assessment Year : NA) Nalanda Education Trust A-1, 204 Wishwas Flat, Opp. Gulab Tower, Sola Road, Ahmedabad, Gujarat - 380061 बनाम/ Vs. Commissioner of Income Tax (Exemption) Ahmedabad èथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACTN6196L (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Pamil H Shah, AR. Ĥ×यथȸ कȧ ओर से/Respondent by : Shri Prathvi Raj Meena, CIT. DR Date of Hearing 26/03/2025 Date of Pronouncement 27/03/2025 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 18.09.2023 in respect of rejection of registration of the trust under Section 12AB of the Income Tax Act, 1961 (in short ‘the Act’). 2. There was a delay of 396 days in filing of this appeal. The assessee has filed an affidavit explaining the reason of delay. It has been submitted that the email address for communicating the ITA No. 2194/Ahd/2024 [Nalanda Education Trust vs. CIT(E)] - 2 – correspondences pertained to the Chartered Accountant who was filing the regular income tax return. The said Chartered Accountant neither complied to the notices of Ld. CIT(E) nor informed the assessee about the final order passed by the Ld. CIT(E). The assessee came to know about the order of the Ld. CIT(E) only when the demand raised by the department was pressed and thereafter, filed the present appeal. It was submitted that the delay in the filing of the present appeal was due to non- communication of the notices/orders by the Chartered Accountant and there was no malafide intention on the part of the assessee. We have considered the explanation of the assessee. It is found that the assessee did not respond to any of the notices of Ld. CIT(E). Therefore, the application for registration of the trust was rejected. Considering the fact that the assessee is a trust running educational institutions as well as the explanation of the assessee, the delay in filing the present appeal is condoned. 3. The brief facts of the case are that the assessee had filed an application for registration of the trust u/s.12AB of the Act in Form No.10AB. The Ld. CIT(E) had called for certain details and documents vide notices dated 18.07.2023 and 19.08.2023, which was not complied. Thereafter, a final opportunity was provided vide notice dated 12.09.2023, to which also, there was no response by the assessee. In the absence of any explanation, the Ld. CIT(E) was not satisfied about the genuineness of the activities of the trust and, therefore, he rejected the application for registration of the trust. ITA No. 2194/Ahd/2024 [Nalanda Education Trust vs. CIT(E)] - 3 – 4. Shri Pamil H Shah, Ld. AR explained that all the notices sent by the Ld. CIT(E) were on the email ID of the dealing Chartered Accountant who neither complied to the notices nor informed the assessee in this regard. He submitted that the assessee is engaged in running educational institutions and other charitable activities. Therefore, in the interest of justice, the assessee may be allowed another opportunity to furnish the documents as required by setting aside the matter to the file of the Ld. CIT(E). 5. Per contra, Shri Prathvi Raj Meena, Ld. CIT.DR had no objection if the matter was set aside to the file of the Ld. CIT(E). 6. We have considered the rival submissions. We are not convinced with the explanation of the assessee for non- compliance before the Ld. CIT(E). The assessee cannot escape by passing on the blame to his counsel. When the application for registration of the trust was filed by the assessee, it was the responsibility of the assessee to pursue the matter diligently and enquire about the progress of the application. The Ld. CIT(E) had allowed as many as three opportunities to the assessee but no compliance was made on any of the dates. We, therefore, deem it proper to impose a cost of Rs.10,000/- on the assessee, which should be paid to the Income Tax department within two weeks of receipt of this order. Further, considering the fact that the assessee is engaged in carrying on charitable activities, we deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to allow another opportunity to the assessee to file the ITA No. 2194/Ahd/2024 [Nalanda Education Trust vs. CIT(E)] - 4 – details and documents as required. The assessee is also directed to make necessary compliance before the Ld. CIT(E). 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. This Order pronounced on 27/03/2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 27/03/2025 S. K. SINHA True Copy आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंͬधत आयकर आयुÈत / Concerned CIT 4. आयकर आयुÈत(अपील) / The CIT(A)- 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलȣय अͬधकरण, अहमदाबाद / ITAT, Ahmedabad "