OPERA SOCIETY JAIN SWETAMBER SANGH,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2162/AHD/2024

AI Insights

The case involves Opera Society Jain Swetamber Sangh, a public charitable trust, appealing against the decision of the CIT(Exemption), Ahmedabad, which rejected their application for registration under section 12AB of the Income Tax Act and cancelled their provisional registration. The trust argued that the rejection was illegal and against the principles of natural justice, citing inability to respond to notices due to administrative oversights. The tribunal found the reasons for the delay in response to be genuine and remanded the case back to the CIT(Exemption) for a thorough examination of the trust's activities and documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793542 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 24-12-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: S.N. DIVATIA; SAMIR VORA; A.RS
• Keywords: Principle of natural justice; Charitable institution

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Opera Society Jain Swetamber Sangh, 14, Opera Society No. 2, Nava Vikas Gruh Road, Paldi, Ahmedabad-380007 PAN: AAATO0669H (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee by: Shri S.N. Divatia & Shri Samir Vora, A.Rs Revenue by: Shri RP Rastogi, CIT-D.R. Date of hearing : 02-09-2025 Date of pronouncement : 23-09-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 10-02- 2023 passed by CIT(Exemption), Ahmedabad for assessment year NA. 2. The grounds of appeal are as under:- “1.1 The order passed by U/s. 12AB passed on 10.02.2023 by CIT (Exem) Ahmedabad rejecting the application for registration of the appellant trust u/s 12A(1)(ac)(iii) of the Act and cancelling the provisional registration is wholly illegal, unlawful and against the principles of natural justice. ITA No. 2162/Ahd/2024 Assessment Year : NA Printed from counselvise.com I.T.A No. 2162/Ahd/2024 Opera Society Jain Swetamber Sangh, A.Y. NA 2 2.1 The ld. CIT (Exem), has grievously erred in law and or on facts in not appreciating that the appellant could not file response to the notices issued by the respondent for sufficient cause. 3.1 The ld. CIT (Exem), has grievously erred in law and or on facts in rejecting the application for registration u/s 12AB of the Act for failure to submit details/documents. 3.2 That the in the facts and circumstances of the ld. CIT (Exem), ought not to have rejected the application for registration by ignoring the evidence on record with the application for registration. It is, therefore, prayed that the rejection of the application for registration and cancellation of the provisional registration by the CIT (Exem), may kindly be deleted.” 3. The assessee is a public charitable trust constituted under the trust deed executed on 04-12-1974 and registered under the Gujarat Public Trust Act, 1950 dated 09-03-1972. The application trust made application for provisional registration on 26-09-2022. As per Form 10AB and the said provisional application was rejected on 14-03-2022. Thereafter, the applicant filed an application for registration u/s. 12A(1)(ac)(ii) of the Income Tax Act in Form No. 10AB on 26-09-2022. The CIT(E) issued notices dated 24-04-2022, 16-01-2023 which were not responded by the applicant trust and hence the applications were rejected vide order dated 10-02-2023. 4. The ld. A.R. submitted that there is a delay of 604 days in filing the present appeal as the order was passed on 10-02-2023 but the person who was handling the tax matters of the applicant trust has given his registered email id different from the email id which was as per the ITR. Since both the notices issued by the CIT(E) were sent at the email id as per the details of ITR and not the other email id, therefore the concerned tax consultant has not intimated the trustee within the stipulated Printed from counselvise.com I.T.A No. 2162/Ahd/2024 Opera Society Jain Swetamber Sangh, A.Y. NA 3 time about the order dated 10-02-2023. Thereafter, the applicant trust was issued penalty notice u/s. 271A(1)(d) and the same was received only on different email id which was registered later on and upon inquiry the applicant trust came to know about the order dated 10-02-2023. In the meanwhile the earlier tax consultant has shifted his business premises as well and these instances had delayed further filing of the present appeal. The ld. A.R. has filed the detailed affidavit dated 1st Sep, 2025 wherein the said tax consultant has given own affidavit and details of the instances and requested to condone the delay. The affidavit is taken on record and the reasons given by the applicant trust appears to be genuine, hence the delay is condoned. 5. The ld. A.R. submitted that since the applicant trust did not respond the notices, the matter may be remanded to the file of CIT(E). The applicant be given further opportunity for presenting the relevant documents before the CIT(E). 6. The ld. D.R. relied upon the order passed by the CIT(E) 7. We have heard both the parties and perused all the materials available on record. Since the applicant trust is old trust and has not responded the notices, it will be appropriate to remit this matter back to the file of CIT(E) for verifying the activities of the applicant trust in consonance with the objects of the trust and after verifying the same, consider the application of the assessee trust for granting registration as per Income Tax Act. Printed from counselvise.com I.T.A No. 2162/Ahd/2024 Opera Society Jain Swetamber Sangh, A.Y. NA 4 8. In the result, the appeal of the applicant is partly allowed for statistical purposes. Order pronounced in the open court on 23 -09-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 23/09/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद Printed from counselvise.com "