PRABHU MAHAVIR JIVDAYA TRUST,JAIPUR V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 66/AHD/2025

AI Insights

The case involves Prabhu Mahavir Jivdaya Trust appealing against the decisions of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied the trust's applications for registration under Section 12A and Section 80G of the Income Tax Act, 1961. The primary reasons for the rejection included the trust's failure to respond to notices requesting documentation to substantiate the genuineness and compliance of the trust's activities with its objectives. The tribunal acknowledged the trust's non-compliance but decided to restore the matter for re-evaluation, emphasizing the need for a fair opportunity for the trust to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473901 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Other Referred Cases: CIT (Exemptions) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. P. SINGH
• Assessee Lawyers: R.S. POONIA
• Keywords: Opportunity of being heard
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER I.T.A. Nos.66&67/Ahd/2025 (Assessment Year: N.A.) Prabhu Mahavir Jivdaya Trust, C/o. R.S. Poonia, D-82B, Siwad Area, Krishna Marg, Bapu Nagar, Jaipur, Rajasthan-302015 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAFTP2407B] (Appellant) .. (Respondent) Appellant by : Shri R. S. Poonia, A.R. Respondent by: Shri A.P. Singh, CIT DR Date of Hearing 11.03.2025 Date of Pronouncement 13.03.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: These appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemptions), (in short “Ld. CIT(E)”), Ahmedabad vide orders dated 13.11.2024 & 15.11.2024 rejecting grant of registration under Section 12A of the Act and Section 80G of the Act. 2. The Assessee has taken the following grounds of appeal:- ITA No. 66/Ahd/2025 “1. That the order passed by Ld. Commissioner of Income Tax, Exemption, Ahmedabad by rejecting application u/s. 12AB (1)(b) of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same. 2. That the Ld. CIT(Exemption), Ahmedabad has erred in law and in facts of the case by neither recording the independent satisfaction for rejection of provisional registration and nor issued Show Cause Notice for rejection of provisional registration u/s. 12A of the I.T. Act 1961 which is wrong, unwarranted and bad in Law. Kindly restore the same. 3. That the Ld. CIT (Exemption), Ahmedabad has erred in law and in facts of the case in rejecting the provisional registration u/s. 12A without issuing separate ITA Nos. 66&67/Ahd/2025 Prabhu Mahavir Jivdaya Trust vs. CIT(E) Asst.Year –N.A. - 2– DIN of the rejection order, which is against the circular & notification issued by the CBDT. So, the same is wrong, unwarranted and bad in Law. Kindly restore the same. 4. That the order passed by Ld. Commissioner of Income Tax (Exemption), Ahmedabad by rejecting provisional registration u/s. 12A of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same. 5. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them.” ITA No. 67/Ahd/2025 1. That under the facts and in the circumstances of the case Ld. Commissioner of Income Tax, Exemption, Ahmedabad rejected the application u/s. 80G(5)(iii) of the I.T. Act, 1961 which is wrong, unwarranted and bad in law. Kindly direct to register the same. 2. That the Ld. CIT (Exemption), Ahmedabad has erred in law and in facts of the case by neither recording the independent satisfaction for rejection of provisional approval and nor issued Show Cause Notice for rejection of provisional approval u/s. 80G of the I.T. Act 1961 which is wrong, unwarranted and bad in Law. Kindly restore the same. 3. That the Ld. CIT (Exemption), Ahmedabad has erred in law and in facts of the case in rejecting the provisional approval u/s. 80G without issuing separate DIN of the rejection order, which is against the circular & notification issued ^by the CBDT. So, the same is wrong, unwarranted and bad in Law. Kindly restore the same. 4. That the order passed by Ld. Commissioner of Income Tax (Exemption), Ahmedabad by rejecting provisional approval u/s. 80G of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same. 5. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them. 3. The brief facts of the case are that the assessee / applicant trust filed application for grant of registration under Section 12A of the Act in Form No. 10AB. Notices calling for certain details were issued by Ld. CIT(E) from time, but there was no response on part of the assessee. Hence, in absence of requisite details, the Ld. CIT(E) dismissed the application for grant of registration under Section 12A of the Act with the following observations: ITA Nos. 66&67/Ahd/2025 Prabhu Mahavir Jivdaya Trust vs. CIT(E) Asst.Year –N.A. - 3– “7. As discussed above, the applicant/assessee has failed to file documentary evidences to enable me to satisfy about: i. Genuineness of the activities of the trust or institution. ii. That the activities of trust or institution are in consonance with the objects of the trust or institution. iii. That other laws material for the purpose of achieving objects are complied with. 8. In view of the above, the present application filed in Form No.1OAB sub- clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961 is rejected and also your provisional registration stands cancelled.” 4. Further, application for grant of registration under Section 80G of the Act was also rejected by the Ld. CIT(E) on the ground that since the application for registration under Section 12A of the Act has been rejected, therefore, registration under Section 80G of the Act cannot be granted to the assessee. While dismissing the application under Section 80G filed by the assessee / applicant trust, Ld. CIT(E) made the following observations: “2. However, on perusal details available on record it is observed that following application(s) of the applicant for registration u/s. 12A/12AB of the Act or approval u/s. 10{23C) of the Act has already been rejected: Sr. no. Application filed u/s of the Act Application number Date of application 1 12A(1)(ac)(iii) CIT(EXEMPTION), AHMEDABAD/2024 -25/1 2AA/1 5676 6/28/2024 Therefore, the applicant does not have any valid order for regular registration/approval u/s. 12AB/10(23C) of the Act under the new provisions of registration effective from 01-04-2021 either in FORM 10AC or FORM 10AD. 3. Under similar circumstances, where the assessee did not have valid registration u/s 12A of the Act, the Hon'ble Gujarat High Court in the case of CIT (Exemptions) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust, reported in 122 taxmann.com 98 has held that the registration u/s 12A of the Act is a pre- requisite for grant of approval u/s 80G of the Act. In absence of valid registration certificate u/s 12A of the Act, approval u/s 80G could not be granted. 4. In view of the above, the present application filed in Form 10AB is rejected without going into the merits.” ITA Nos. 66&67/Ahd/2025 Prabhu Mahavir Jivdaya Trust vs. CIT(E) Asst.Year –N.A. - 4– 5. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(E) denying grant of registration under Section 12A and 80G of the Act. 6. Before us, the Counsel for the assessee admitted that evidently there has been non-compliance on the part of the assessee and the assessee failed to respond to notices issued by Ld. CIT(E). However, the Counsel for the assessee submitted that the assessee has a good case on merits and if given an opportunity of being heard, the assessee shall furnish all requisite documents as called for, to the satisfaction of Ld. CIT(E). Accordingly, the Counsel for the assessee requested that the matter may be restored to the file of Ld. CIT(E) for de-novo consideration in the interest of justice. 7. In response, Ld. D.R. placed reliance on the observations made by Ld. CIT(E) in the order passed by him. 8. We have heard the rival contentions and perused the material on record. 9. On going through the facts of the instant case, we observe that there is admittedly non-compliance on part of the assessee during the course of 12A/80G proceedings and the assessee / applicant trust has not responded to various notices issued by Ld. CIT(E), calling for details from time to time. However, in the interest of justice, both the matters relating to grant of registration under Section 12A of the Act and grant of registration under Section 80G of the Act, are restored to the file of Ld. CIT(E) for de-novo consideration, after giving due opportunity of hearing to the assessee. However, in case assessee / applicant trust still continuous to remain non- complied, Ld. CIT(E) would be at liberty to pass appropriate orders, on the basis of materials available on record, in accordance with law. ITA Nos. 66&67/Ahd/2025 Prabhu Mahavir Jivdaya Trust vs. CIT(E) Asst.Year –N.A. - 5– 10. Further, in view of the admitted non-compliance to various notices issued by Ld. CIT(E) a cost of Rs. 5,000/- with respect to each of the two appeals is hereby directed to be paid to the Prime Minister Relief Fund for getting the matter restored to the file of Ld. CIT(E). 11. In the result, the appeals of the assessee / applicant trust are allowed for statistical purposes. This Order pronounced in Open Court on 13/03/2025 Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 13/03/2025 TANMAY, Sr. PS TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 11.03.2025 2. Date on which the typed draft is placed before the Dictating Member 12.03.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 13.03.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 13.03.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 13.03.2025 7. Date on which the file goes to the Bench Clerk 13.03.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… "