PEOPLE SERVICE CHARITABLE TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 193/AHD/2025

AI Insights

The case involves People Service Charitable Trust appealing against the decision of the Commissioner of Income-tax (Exemptions), Ahmedabad, which had rejected their application for final registration under section 12AB of the Income Tax Act, 1961, and cancelled their provisional registration. The Trust argued that the rejection was due to an unintentional oversight in complying with a notice, which was overlooked by the husband of the Trust's President. The Tribunal found that the details submitted by the Trust were not considered by the CIT(Exemption) and thus remanded the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779467 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 27-01-2025
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: RAJESH SHAH
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘C’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD ]BEFORE MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER AND MAKARAND V.MAHADEOKAR, ACCOUNTANT MEMBER ITA No.193/Ahd/2025 Asstt.Year : - People Service Charitable Trust C-502, Hometown 4, Nr. Chandkhedia Rly. Station Chandkheda. PAN : AAFTP 3439 D Vs. The CIT(Exemption) Vejalpur Ahmedabad. (Applicant) (Responent) Assessee by : Shri Rajesh Shah, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई क तारीख/Date of Hearing : 15/10/2025 घोषणा क तारीख /Date of Pronouncement: 17/10/2025 आदेश आदेश आदेश आदेश/O R D E R PER MAKARAND V.MAHADEOKAR, AM: This appeal has been preferred by the assessee against the order passed by the Commissioner of Income-tax (Exemptions), Ahmedabad [hereinafter referred to as “CIT(Exemption)”], dated 23.08.2024 whereby the learned CIT(Exemption) rejected the assessee’s application filed in Form No. 10AB under section 12A(1)(ac)(iii) of the Income-Tax Act, 1961 [hereinafter referred to as “the Act”] for grant of registration under section 12AB and also cancelled the provisional registration earlier granted to the assessee under the said provision. 2. The ground raised by the assessee in appeal reads as under: Printed from counselvise.com ITA No.193/Ahd/2025 2 1. That the CIT(Exemption) erred in rejecting the application made in Form No. 10AB seeking final registration of a charitable trust u/s 12A(l)(ac) of the Act merely because notice dt. 5-8-2024 could not be complied with. It is submitted that the non-compliance was only on account of notice of hearing received in an email having been overlooked by the husband of the President of the Trust and consequential non-communication of the same to the President of the Trust for further compliance. It is submitted that the Trust has been genuinely carrying on charitable activities and is eligible for being registered u/s 12A(l)(ac) of the Act and, hence, the unintentional omission to comply with the notice be condoned and the CIT(Exemption) be directed to give a fresh opportunity of hearing and then grant final registration after necessary verification. 3. The applicant/appellant filed application for registration of the trust in Form 10AB under Sub-clause (iii) of clause (ac) of sub-section (1) of Section 12A of Income Tax Act, 1961. The said application was rejected and provisional registration was also cancelled by the CIT(E) vide order dated 23.08.2024. 4. Being aggrieved by the said order dated 23.08.2024 the applicant/appellant filed appeal belatedly by 88 days. The Ld. AR submitted that after filing of application for registration under Section 12A of the Income Tax Act, 1961, in some of the notices were issued the applicant/appellant submitted party details vide reply dated 29.06.2024 but overlooked the order received in email by the husband of the President of the Trust. Therefore, there was a delay in filing the present appeal. Thus, the delay in filing the present appeal is not deliberate. Hence, delay is condoned. 5. From the submissions of both the Ld. AR and Ld. DR as well as from the records it appears that the applicant/appellant has filed details before the CIT(E) but said details were not considered at all. The Ld. AR requested that the Printed from counselvise.com ITA No.193/Ahd/2025 3 applicant/appellant be allowed to file the details and also be granted hearing, therefore, prayed that the matter may be remanded back to the file of CIT(E) for fresh adjudication. Therefore, it will be appropriate to remand back this matter to the file of the CIT(E) for verifying the details filed by the applicant/appellant and decide/adjudicate the matter a fresh on merit and as per Income Tax Statute. Needless to say, the applicant be given opportunity of hearing by following principles of natural justice. Thus, the appeal of the applicant/appellant is partly allowed for statistical purpose. 6. In result, appeal of the applicant/appellant is partly allowed for statistical purpose. Order pronounced in the Court on 17th October, 2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA R. KAMBLE) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER Ahmedabad, dated 17/10/2025 Printed from counselvise.com "