NUTAN SHIKSHAN SADHANA TRUST ,VADODARA V. CIT (EXEMPTION), AHEMDABAD

ITA 665/AHD/2025

AI Insights

The case involves Nutan Shikshan Sadhana Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied the final approval under Section 80G of the Income Tax Act, 1961. The denial was primarily due to the assessee's non-cooperation in the initial proceedings, which prevented the Commissioner from verifying the genuineness of the trust's activities. The Tribunal found that despite the consultant's illness, the assessee should be given another opportunity to present its case, emphasizing the importance of the trust's educational activities and the potential impact on its ability to receive donations.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705261 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHER SINGH
• Assessee Lawyers: KUSHAL RATHOD; WAY OF AN APPLICATION CONDONATION OF DELAY; WE ARE
• Keywords: Condonation of delay; Charitable institution
• Section: 246; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE: SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 665/Ahd/2025 (िनधा[रण वष[ / Assessment Year : NA) Nutan Shikshan Sadhana Trust Tulsi, Kothi Pole, Raopura, Gujarat - 390001 बनाम/ Vs. The Commissioner of Income Tax (Exemption), Ahmedabad Öथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAATN1756G (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Kushal Rathod, A.R. Ĥ×यथȸ कȧ ओर से/Respondent by : Shri Sher Singh, CIT. DR Date of Hearing 17/06/2025 Date of Pronouncement 30/06/2025 (आदेश)/ORDER PER SMT. ANNAPURNA GUPTA, AM: The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption), (hereinafter referred to as “CIT(E)”), Ahmedabad dated 28.12.2024 denying the grant of final approval under Section 80G of the Income Tax Act, 1961 (hereinafter referred to as the “Act”). 2. The grounds of appeal raised by the assessee are as under: “On the facts in the circumstances of your appellant case and in law, the rejection of application MY BOG by CIT (EXEMPTION) AHEMDABAD due to not non satisfaction of genuineness of the activities of trust which is bad in law. We have objections against the rejection u/s 80G under the following grounds:- ITA No. 665/Ahd/2025 [Nutan Shikshan Sadhana Trust vs. CIT(E)] - 2 – To prove the genuineness of the activity of the trust appellant has submitted Bank statement of last 3 years, Audit report of last 4 years (computation, profit and loss statement and balance sheet), Notes on activities, Trust deed (vernacular and English), Details of donation exceeding Rs.10,000, Declaration u/s 2(15), 11(5), 13(1)(c),13(1)(d), Electricity bill, Registration certificate. We are submitting the permission/approval letter for running the above mention schools to satisfy the genuineness of the educational activities of the trust as asked by CIT (EXEMPTION) AHEMDABAD. The actual activities conducted by trust are solely for achieving the educational charitable purposes only. On verification of the audited statements, it clearly seems that the trust is running the above mention schools as per permission/approval given by the department of education. Therefore, we request you to consider our application for registration u/s 80G. Your appellant craves leave to add to amend or to modify the ground in above raised.” 3. The appeal is time barred by 29 days. The assessee has filed condonation application seeking condonation of delay which reads as under: “The appellant is enclosing his appeal u/s 246 of income tax act, 1961 against the rejection of registration u/s EDG by the CIT (EXEMPTION) AHEMDABAD PASSED ON 03 DECEMBER 2024. Although the said appeal should have been filed on or before 1 January 2025, but unfortunately is could not be so filed because our consultant was hospitalized for medical treatment. Hence, it is requested that delay in filing of appeal may be condoned and the appeal treated as filed within the time allowed time.” 4. The Ld. D.R. vehemently opposed the condonation of delay. But on perusing the contents of the explanation furnished by the assessee by way of an application for condonation of delay, we are ITA No. 665/Ahd/2025 [Nutan Shikshan Sadhana Trust vs. CIT(E)] - 3 – convinced that the delay cannot be attributable to complete laxity on the part of the assessee and there is sufficient cause for the delay. Even otherwise the assessee does not stand to benefit by not filing an appeal. In the interest of justice, therefore, we consider it fit to condone the small delay of 29 days in the filing of the present appeal before us and proceed to adjudicate the same. 5. The orders of the authorities below reveal that the assessee has been denied approval u/s.80G of the Act primarily for the reason that it did not co-operate in the proceedings before the Commissioner and, therefore, the Ld. CIT(E) was unable to verify the genuineness of the activities carried out by it as also the fulfillment of all the conditions necessary for granting approval u/s.80G(5) of the Act. 6. Before us, Ld. Counsel for the assessee contended that for the reasons stated in the application seeking condonation of delay, that the consultant of the assessee was unwell and the notice issued by the Ld.CIT(E) remained uncomplied with, he pleaded, therefore, for another opportunity to be given to the assessee to furnish all evidences to the Ld.CIT(E) to satisfy him about the genuineness of the activities carried out by the assessee trust as also the fulfillment of all conditions for grant of approval u/s.80G of the Act. 7. We have heard the Ld. Counsel for the assessee and we are not convinced with his explanation that the proceedings before the ITA No. 665/Ahd/2025 [Nutan Shikshan Sadhana Trust vs. CIT(E)] - 4 – Ld.CIT(E) could not be attended because the Consultant / Counsel of the assessee was unwell during that period. And this is for the reason that the medical certificate filed by the Ld. Counsel for the assessee alongwith his application seeking condonation of delay reveals the Doctor treating the Consultant to have stated the said person to be unwell and admitted frequently in the Hospital for two to three months due to heart and Kidney problem. This letter of the Doctor i.e. Dr. Mitesh M. Sutaria of Shreeji Hospital, Vadodara is dated 20th March, 2025. Therefore according to the doctors certificate the Consultant was unwell from January 2025 onwards. The Ld. CIT(E), however, issued notices on 3rd October, 2024, 7th November, 2024 and 10th December, 2024. The explanation of the assessee, therefore, that the proceedings could not be participated in because of the sickness of the Consultant, does not appear to be convincing. However, at the same time, we find that the assessee had been granted provisional approval u/s. 80G of the Act and was required as per law to seek final approval 6 months prior to the expiry of the provisional approval. Denial of the final approval without the assessee being heard, we are conscious, would have serious consequences, more particularly the assessee being unable to get donations for carrying out its charitable activities. In the light of the same, therefore, and keeping the interest of justice in mind, we are restoring the matter back to the file of the Ld.CIT(E) to afford a fresh opportunity of hearing to the assessee. At the same time noting that no sufficient cause has been given by the assessee for not cooperating in the proceedings in the first round, we consider it fit to impose a cost ITA No. 665/Ahd/2025 [Nutan Shikshan Sadhana Trust vs. CIT(E)] - 5 – of Rs.5000/- on the assessee, to be deposited to the Prime Ministers Relief Fund. The Ld.CIT(E) is directed to proceed with the matter once the assessee has deposited the fine. With the above direction, the appeal of the assessee is allowed for statistical purposes. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. This Order pronounced on 30/06/2025 Sd/- Sd/- (T.R. SENTHIL KUMAR) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 30/06/2025 S. K. SINHA True Copy आदेश कȧ Ĥितिलǒप अĒेǒषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंिधत आयकर आयुƠ / Concerned CIT 4. आयकर आयुƠ(अपील) / The CIT(A)- 5. ǒवभागीय Ĥितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "