RUDRAKSHA SEVA CHARITABLE TRUST,VALSAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 698/AHD/2025

AI Insights

The case involves Rudraksha Seva Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for approval under section 80G(5)(iii) of the Income Tax Act. The Commissioner had initially rejected the application on the grounds that the trust was considered a religious trust, which is excluded from the benefits of section 80G(5). The Tribunal found that the Commissioner did not fully consider the explanations and evidence provided by the trust and thus remanded the case for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708470 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: S N DIVATIA
• Keywords: Principle of natural justice; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.698/Ahd/2025 (Assessment Year: N.A) Rudraksha Seva Charitable Trust, Dharmudada Park, Garden Road, Dharmpur, Valsad-396050. [PAN: AABTR7663 R] Vs. The Commissioner of Income Tax(Exemption), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri S N Divatia with Shri Samir Vora,, ARs Respondent by: Shri RP Rastogi, CIT. DR Date of Hearing 09.07.2025 Date of Pronouncement 15.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, vide order dated 24.12.2024. 2. The assessee has raised the following grounds of appeals: 1.1 The order passed by U/s.80G(5) on 24.12.2024 by CTT(Exem). Ahmedabad rejecting the application for approval of the appellant trust u/s 80G(5)(iii) of the Act and cancelling the provisional approval by holding that the appellant trust was a religious trust ITA No. 698/Ahd/2025 Rudraksha Seva Charitable Trust Vs. CIT Asst. Year : N.A - 2– which is excluded from the benefits of sec.80G(5) is wholly illegal, unlawful and against the principles of natural Justice. 1.2 The Id. CIT (Exem) has erred in not considering fully and properly the explanations furnished and evidence produced by the appellant trust. 2.1 The Id. CIT (Exem), has grievously erred in law and or on facts in not appreciating that the appellant trust was not a religious trust and no expenditure was incurred on religious objects in past as per audited accounts furnished. 2.2 That the in the facts and circumstances of the Id. CIT (Exem), ought not to have held that the appellant trust was a religious trust inclusive of religious objects. 3.1. The Ld.CIT (Exem) has grievously erred in law and or on facts in rejecting the approval of the appellant trust u/s 800(50) of the Act and cancelling the provisional approval. 3.2 That the in the facts and circumstances of the Id. CIT(Exem), ought not to have rejected the application for registration by ignoring the evidence on record with the application for registration. 3. The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. However, Ld. CIT(E) rejected the application for approval u/s.80G(5)(iii) of the Act, since the assessee trust failed to submit substantial document regarding the genuineness of religious activities of the Trust. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. 5. At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld.CIT(E) rejected the ITA No. 698/Ahd/2025 Rudraksha Seva Charitable Trust Vs. CIT Asst. Year : N.A - 3– application of the assessee on the ground that the assessee-trust failed to produce substantial documents before the Ld.CIT(A). Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 15.07.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 15.07.2025 MV ITA No. 698/Ahd/2025 Rudraksha Seva Charitable Trust Vs. CIT Asst. Year : N.A - 4– 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, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "