SEVA SAMARPAN CHARITABLE TRUST KHAMBHAT,ANAND V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1989/AHD/2024

AI Insights

The case involves Seva Samarpan Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for registration under Section 12A of the Income Tax Act, 1961. The Commissioner had also cancelled the provisional registration previously granted to the trust. The Tribunal found that the trust was not given a reasonable opportunity to be heard, as required under Section 12AB(1)(b)(ii)(B) of the Act. The Tribunal noted that the trust had submitted substantial details in their application, which were not considered by the Commissioner. Consequently, the Tribunal restored the matter to the Commissioner for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474029 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2025
• 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
• Department Lawyers: DA RSI SUMAN RATNAM
• Assessee Lawyers: MEHAL DOSHI
• Keywords: Opportunity of being heard; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER I.T.A. No.1989/Ahd/2024 (Assessment Year: N.A.) Seva Samarpan Charitable Trust Khambhat – Anand, Sonalben N Joshi, 409, Lalaji Ni Pole, Khambhat, Anand, Gujarat-388620 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.ABBTS1357E] (Appellant) .. (Respondent) Appellant by : Shri Mehal Doshi, A.R. Respondent by: Dr. Darsi Suman Ratnam, CIT DR Date of Hearing 23.01.2025 Date of Pronouncement 24.01.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemptions), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 02.09.2024. 2. The Assessee has taken the following grounds of appeal:- “1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s 12A of the Act. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has not provided reasonable opportunity of being heard as provided under Section 12AB(1)(b)(ii)(B) of the Act. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 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 10AB. Ld. CIT(E) issued notices to the assessee dated 04.07.2024 and ITA No. 1989/Ahd/2024 Seva Samarpan Charitable Trust Khambhat vs. CIT(E) Asst.Year –N.A. - 2– 07.08.2024 asking for certain details / information. The CIT(E) noted that the applicant trust has neither filed any submission nor sought any adjournment in this case. Accordingly, the Ld. CIT(E) rejected the application for grant of registration under Section 12A of the Act and also directed cancellation of provisional registration earlier granted to the applicant trust. While passing the order, Ld. CIT(E) made the following observations: “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.10AB 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. 9. Further, the applicant should compute its tax liability under section 115TD of Income Tax Act, 1961 read with Rule 17CB of IT Rules and report the same in return of Income. It should also pay the tax so computed within timeline provided under section 115TD(5) of Income Tax Act,1961. In case applicant is filing appeal against this order u/s. 253 of IT Act 1961, proof of filing of appeal should be provided to AO to get benefit of extended time limit provided u/s. 115TD(5) of IT Act 1961.\"” 4. The assessee / applicant is in appeal before us against the aforesaid order passed by Ld. CIT(E). Before us, the Counsel for the assessee submitted that there was lack of opportunity granted to the assessee / applicant trust since only two notices of hearing were issued on very short intervals. The assessee for that period could not access the e-portal and accordingly, the assessee / applicant trust was not aware about the issuance of notices by Ld. CIT(E). However, the Counsel for the assessee submitted that the applicant trust has been operating since December, 2020 and in the Form 10AB filed by the assessee, substantial details were furnished like Registration Certificate, Trust Deed, Audit Report for the last three years. Accordingly, it was submitted that on the basis of these ITA No. 1989/Ahd/2024 Seva Samarpan Charitable Trust Khambhat vs. CIT(E) Asst.Year –N.A. - 3– details, Ld. CIT(E) could have verified the genuineness of the activities of the trust, but Ld. CIT(E) chose completely to ignore the above details / information. Accordingly, the Counsel for the assessee submitted that the matter may be restored to the file of Ld. CIT(E) to decide the case of the assessee on merits, after giving due opportunity of hearing to the assessee. 5. In response, the D.R. also did not object to the matter being restored to the file of Ld. CIT(E) for de-novo consideration. 6. We have heard the rival contentions and perused the material on record. 7. Accordingly, looking into the above facts placed on record, in the interest of justice, the matter is restored to the file of Ld. CIT(E) for de- novo consideration, after giving due opportunity of hearing to the assessee. 8. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 24/01/2025 Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 24/01/2025 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 "