NIHA FOUNDATION,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2038/AHD/2024

AI Insights

The case involves Niha Foundation, which appealed against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was primarily due to the delay in filing the application within the stipulated time. The appellant argued that the delay was caused by the cancer treatment of the trustee, who was responsible for the trust's legal compliance and accounts. The Tribunal found merit in the appellant's argument that the health issues of the trustee, which prevented timely filing, warranted a reconsideration of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298744 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.N. DSOUZA
• Assessee Lawyers: URJITA SHAH
• Keywords: Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘A अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD ] ] BEFORE MS.SUCHITRA R. KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V.MAHADEOKAR, ACCOUNTANT MEMBER ITA No.2038/Ahd/2024 Asstt.Year :- Niha Foundation 15, FF-Vishwas City-2 Chanakyapuri Road Ghatlodia Ahmedabad. PAN : AADTN 7641 K Vs The CIT(Exemption) Ahmedabad. (Applicant) (Responent) Assessee by : Ms.Urjita Shah, CA Revenue by : Shri R.N. Dsouza, CIT-DR सुनवाई क तारीख/Date of Hearing : 17/03/2025 घोषणा क तारीख /Date of Pronouncement: 28/03/2025 आदेश आदेश आदेश आदेश/O R D E R PER MS.SUCHITRA R. KAMBLE, JUDICIAL MEMBER: The present appeal has been filed by the assessee against order passed by the Commissioner of Income Tax(Exemption), Ahmedabad under section 12AB of the Income Tax Act, 1961 dated 24.05.2023, vide which the ld.CIT(E) rejected the application in form no.10AB of the assessee for registration under section 12(1)(ac)(iii) of the Act. 2. The grounds raised by the assessee are as under: 1. Learned CIT (Exemption) erred in law and facts by making the order by rejecting the application filed in form 10AB for registration u/s.12A(1)(ac)(iii) of the Act for delay in applying final registration application beyond the due date mentioned in the section 12A(1)(ac)(iii) of the Act. ITA No.2038/Ahd/2024 2 2. Due to health issue, we have not submitted appeal on time, so we will require permission for condoantion of delay in filing the appeal. 3. The brief facts of the case are that the appellant trust filed application for registration of trust under section 12AB of the Income Tax Act, 1961 on 28.11.2022 in form no.10AB under Rule 17A of the I.T. Rules 1962. The ld.CIT(E) issued notice to the appellant trust on 18.2.2023, requesting thereby to furnish a detailed note on the activities carried out by the Trust. In response to the notice, the ld.CIT(E) observed that the assessee did not furnish any details, and therefore, from the available details, the ld.CIT(E) observed that the assessee-trust has mentioned the date of incorporation/creation/registration as 4.8.2021 and was granted professional registration on 2.10.2021 for the period commencing from Asst.Year 2022-23 to 2024-25. The ld.CIT(E) held that since the assessee/appellate Tribunal has not filed any reply and the date of commencement of the activities was 6.10.2021 vis-a-vis the appellant-trust has not filed the application under section 12A(1)(ac)(iii) and Form No.10AB within the due date mentioned in the section 12A(1)(ac)(iii) of the Act, therefore, the application is liable to be rejected as non- maintainable, and thus, requested the application vide order dated 2.5.2023. 4. The ld.AR submitted that there is a delay in filing the present appeal for 49 days, and the reasons for the delay is due to cancer treatment (tongue cancer) of the trustee, Shri Dharmendra H. Shah, who was handling the legal compliance and accounts of the trust. The delay is condoned. The ld.AR ITA No.2038/Ahd/2024 3 submitted that the ld.CIT(E) has rejected the application only on the ground of delay and has not given opportunity to the assessee to present the case of the appellant trust. The ld.AR submitted that due to cancer treatment of the trustee, the appellant trust could not file the requisite details, within the stipulated time, and therefore, the matter may be remanded back to the file of the ld.CIT(E) and allow the appellant-trust to file the details and the ld.CIT(E) should be decide the matter as per the law. The ld.DR submitted that the assessee/appellant Trust has not filed any documentary evidences before the ld.CIT(E) as well as before the Tribunal, and therefore, the ld.CIT(E) has rightly rejected the application of the assesse-trust. 5. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the appellant-trust has given affidavit through its trustee who was suffering from cancer during the relevant period, and was not able to do activities of the trust regarding, accounts and necessary legal compliances, and due to these factor, the trust could not file the details before the ld.CIT(E) within the stipulated time. In the interest of justice, it will be appropriate to remand back this matter to the file of the ld.CIT(E) for proper adjudication of the issue after verifying the documents, which will be filed by the appellant-trust. The appellant trust will be given opportunity of hearing by applying principle of natural justice. The appellant trust will file the ITA No.2038/Ahd/2024 4 requisite details within the reasonable time before the ld.CIT(E) as per the requirement of section 12A(1)(ac)(ii)/(iii) of the Act. 6. In the result, the appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the Court on 28TH March, 2025 at Ahmedabad. Sd/- Sd/- (MAKARAND V.MAHADEOKAR) ACCOUNTANT MEMBER (SUCHITRA R. KAMBLE) JUDICIAL MEMBER Ahmedabad, dated 28/03/2025 vk* "