NEEM FOUNDATION TRUST,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 761/AHD/2024

AI Insights

The case involves the Neem Foundation Trust, which appealed against the decision of the CIT(Exemption), Ahmedabad, rejecting their application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(Exemption) had concluded that the Trust's activities were not genuine and that they had failed to respond to notices, which the Trust contested by providing evidence of their responses and activities. The Tribunal found that the CIT(Exemption) had not adequately considered the Trust's submissions and remanded the case for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298705 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• 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: KINJAL SHAH
• Keywords: Set aside; Corroborative evidences

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘B’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.761/Ahd/2024 Assessment Year : - Neem Foundation Trust 4/A, Utkanth Society Alkapuri Club Alkapuri Vadodara 390 007. PAN : AADTN 3823 B Vs. CIT(Exemption) Vejalpur, Ahmedabad. (Applicant) (Responent) Assessee by : Ms.Kinjal Shah, AR Revenue by : Shri V. Nandakumar, CIT-DR सुनवाई क\t तारीख/Date of Hearing : 27/02/2025 घोषणा क\t तारीख /Date of Pronouncement: 27/02/2025 आदेश आदेश आदेश आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER The above appeal is filed by the assessee against order passed by the ld.Commissioner of Income (Exemption), Ahmedabad dated 26.2.2024 passed under section 12AB of the Income Tax Act, 1961 [hereinafter referred to as \"the Act\" for short] vide which, the ld.CIT(Exemption) rejected the application of the assessee filed under section 12AB of the Act for grant of registration of the assessee-trust. 2. The grounds raised by the assessee in the appeal read as under: 1. The Order of CIT(E) dated 26-2-24 U/S.12AB is bad in Law and Void. Since the CIT(E) has failed to consider the facts of the case provisions of Law and data and information submitted by your Appellant and has erroneously held that your Appellant has not given reply to notice dated 22-11-2023 and 26-12-23 and hence is not eligible for the Certificate. ITA No.761 /Ahd/2024 2 2. Your Appellant submits that the Appellant Trust had given a very detailed reply on 7-2-24 to all the items of notice dated 26-12-2023 and thereafter the CIT(E) failed to make an inquiry and erroneously suomoto held that the activities of the Appellant were not Genuine and that the said Activities are not consonance with the objects of the Trust.\" 3. Trust is distributing Neem Sapling free of cost among local villages to increase the amount of Neem trees in the region, thereby increasing the green cover and reducing the effect of greenhouse gases and global warming through afforestation. 4. (a) Your Appellant submits that the Appellant is engaged in uplift and better leaving of for the entire Man kind and entire public on principal of grow more trees and reduce creating of pollution with objects in support of creating green world. (b) Your Appellant submits that the Trust is not for any Monetary benefit of any community or any cast or creed or any religious activities and therefore the Comm. of Income-tax (E) ought to have granted exemption of certificate U/S.12AB.” 3. A perusal of the above grounds reveals the solitary grievance of the assessee that the ld.CIT(E) without consideration of the detailed information and explanation filed by the assessee during the proceedings, rejected the application of the assessee for grant of registration under section 12AB of the Act. 4. Before us, the learned counsel for the assessee submitted that the assessee had duly filed all the necessary documents and replies to the notices issued by the Revenue authorities. In support of this contention, the ld. counsel furnished a copy of the e-proceedings response acknowledgment no. 1016776371090224 & 1016868111090224, which clearly indicates that the assessee uploaded ten plus four documents, including the reply, trust deeds, audit reports, and other relevant materials, to enable the Commissioner to examine the assessee’s claim for trust registration. 5. However the ld. CIT(E) wrongly stated that no details were filed by the and accordingly concluded that he was not satisfied with the genuineness of the activities of the trust. Consequently, he rejected ITA No.761 /Ahd/2024 3 the assessee’s application. He further submits that this action of the learned CIT(E) contravenes established principles of law, which mandate that an adjudicating authority must examine the material on record before reaching a conclusion and pass an order in accordance with the law. Since the order of the learned CIT(E) lacks judicial merit, it is liable to be set aside, and the matter requires fresh adjudication, considering the evidence available on record. Before us, the assessee has submitted the following various papers in the form of paper book relating to the claim of the assessee for the registration of the trust, which the ld.counsel for the assessee stated to have submitted before the Revenue authorities also. ITA No.761 /Ahd/2024 4 6. On the other hand, the ld.DR merely relied on the order of the ld.CIT(E). 7. We have heard the rival submissions and have perused the material available on record, including the impugned order passed by the ld.CIT(E). From the impugned order and the material submitted before us by the assessee, it is evident that the assessee has furnished reply along with various supporting documents to substantiate its claim for registration under Section 12AB of the Income Tax Act. The index of the material submitted before us in the paper book, as well as before the learned CIT(E), has been reproduced above. 8. A careful examination of the same, it is apparent that the learned CIT(E) has not based his findings on a proper examination of and appreciation of the material and explanations submitted by the assessee. Instead, his conclusion appears to be based on generalized and unsubstantiated assumptions regarding the genuineness of the assessee’s activities, despite the supporting evidences provided. Such an approach runs contrary to the settled principles of law, which mandate a reasoned consideration of the material placed on record before arriving at an adverse conclusion. The action of the learned CIT(E), in disregarding the material submitted and passing an adverse order without due consideration, is unjustifiable and legally untenable. Finding no merit in the impugned order, we set it aside and remit the matter back to the file of the learned CIT(E) for fresh adjudication. The learned CIT(E) is directed to reconsider the assessee’s claim for registration in light of the material already submitted before the Revenue authorities, as well as any additional material that may be furnished during the remand proceedings. ITA No.761 /Ahd/2024 5 9. In the result, the appeal of the assesse is allowed for statistical purpose. Order pronounced in the Court on 27th February, 2025 at Ahmedabad. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad,dated 27/02/2025 ITA No.761 /Ahd/2024 6 vk* आदेश क\u0007 \bितिलिप अ\u000eेिषत आदेश क\u0007 \bितिलिप अ\u000eेिषत आदेश क\u0007 \bितिलिप अ\u000eेिषत आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0016 / The Appellant 2. \u0017\u0018यथ\u0016 / The Respondent. 3. संबंिधत आयकर आयु\u001f / Concerned CIT 4. आयकर आयु\u001f(अपील) / The CIT(A) 5. िवभागीय \u0017ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड# फाईल / Guard file. आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/BY ORDER, उप उप उप उप/सहायक पंजीकार सहायक पंजीकार सहायक पंजीकार सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद अहमदाबाद अहमदाबाद अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation- 27-2-2025 2. Date on which the typed draft is placed before the Dictating Member 3. Date on which the approved draft comes to the Sr.P.S./P.S. - 4. Date on which the fair order is placed before the Dictating Member for Pronouncement ……………….. 5. Date on which the file goes to the Bench Clerk .. 27-2-2025 6. Date on which the file goes to the Head Clerk……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. Date of Despatch of the Order……………… "