PRAKASH KELVANI MANDAL,MEHSANA V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 229/AHD/2025

AI Insights

The case involves Prakash Kelvani Mandal, a Trust, appealing against two separate exparte orders by the Commissioner of Income Tax (Exemption), Ahmedabad, which denied the Trust registration under sections 12AB and 80G(5) of the Income Tax Act, 1961. The Trust argued that the trustees, being senior citizens with limited familiarity with digital communications, were unable to monitor the email account regularly, leading to the passing of exparte orders. The Tribunal, considering the principles of natural justice, decided to set aside the CIT(E)'s orders and provide another opportunity for the Trust to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 42079 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ISSUING PHYSICAL
• Keywords: Set aside; Principle of natural justice
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Makarand Vasant Mahadeokar, Accountant Member Prakash Kelvani Mandal At And PO. Vithoda, Tal. Kheralu, Vithoda, Dist: Mehsana, Gujarat-384325 PAN: AAATP6772E (Appellant) Vs CIT(Exemption), Ahmedabad (Respondent) Assessee Represented: None Revenue Represented: Shri Abhay Kumar Thakur, CIT-DR Date of hearing : 26-03-2025 Date of pronouncement : 28-03-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- These two appeals are filed by the Assessee Trust as against two separate exparte orders dated 13-11-2024 and 15-11-2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB and u/s. 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). ITA Nos: 228 & 229/Ahd/2025 I.T.A No. 228 & 229/Ahd/2025 Page No Prakash Kelvani Mandal vs. CIT(E) 2 2. The Ld. CIT(E) vide impugned orders denied registration u/s. 12AB and u/s. 80G(5) of the Act in spite of two opportunities given to the assessee. The assessee Trust failed to furnish necessary documents, therefore Ld. CIT(E) cancelled the provisional registration granted to the Trust. 3. None appeared on behalf of the assessee. The assessee submitted that the Trust is doing charitable activities and the Trustees are senior citizens with limited familiarity with digital communications and were unable to regularly access and monitor the email account where the notices were sent by Ld. CIT(E) which has resulted in passing exparte orders. Therefore the assessee Trust requested one more opportunity of hearing be given to the assessee Trust, so that necessary documents will be filed by the Trust for granting registration u/s. 12AB and 80G of the Act. 4. We have perused the impugned orders passed by the Ld. CIT(E) who had given two opportunities on 22-08-2024 and 14-10-2024 for registration u/s. 12AB of the Act and hearing notices on 10-09- 2024 and 24-10-2024 for registration u/s. 80G(5) of the Act. Since the assessee failed to comply with the above notices registration u/s. 12AB and u/s. 80G were denied by Ld. CIT(E). Therefore in the interest of Principle of Natural Justice, we deem it fit to set aside the orders passed by the Ld. CIT(E) with a direction to give one more opportunity of hearing to the assessee by issuing physical notice to the assessee Trust for granting registration u/s. 12AB and u/s. 80G in accordance with the provisions of law. Needless to say, I.T.A No. 228 & 229/Ahd/2025 Page No Prakash Kelvani Mandal vs. CIT(E) 3 the assessee Trust should cooperate by furnishing all the relevant materials before Ld. CIT(E) for granting registration. 5. In the result, the appeals filed by the Assessee are allowed for statistical purposes. Order pronounced in the open court on 28 -03-2025 Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 28/03/2025 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 "