SHALIMAR CHARITABLE TRUST,AHMEDABAD V. CIT(EXEMPTION), AHMEDABAD

ITA 1580/AHD/2024

AI Insights

The case involves Shalimar Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied their application for registration under section 80G(5) of the Income Tax Act, 1961. The primary contention was the interpretation of the trust's objectives, which the CIT(E) viewed as benefiting a 'particular religious community', thus violating section 80G(5)(iii). The trust argued that their objectives were misinterpreted and that the decision was made without proper consideration of their submissions, violating principles of natural justice. However, before the tribunal could make a final decision, the trust withdrew their appeal, opting to submit a revised application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25557 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: misc
• Other Referred Cases: Ahmedabad Rana Caste Association v. CIT (1971) 82 ITR 704
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRATHVI RAJ MEENA
• Assessee Lawyers: SUNIL TALATI
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.1580/Ahd/2024 (Assessment Year: N.A) Shalimar Charitable Trust, 7, 2nd Floor Nandanvan Chambers, Opp. Town Hall, Ellisbridge, Ahmedabad-380006. Vs. The Commissioner of Income Tax(Exemption), Ahmedabad [PAN No.AAXTS9799M] (Appellant) .. (Respondent) Appellant by : Shri Sunil Talati, AR Respondent by: Shri Prathvi Raj Meena, CIT. DR Date of Hearing 27.01.2025 Date of Pronouncement 29.01.2025 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 (Exemption), Ahmedabad (in short “Ld. CIT(E)”), vide order dated 29.08.2024 passed for A.Y. N.A. 2. The Assessee has taken the following grounds of appeal:- 1. The Ld. CIT(E) has erred in passing an order in Form 10AD by rejecting the appellant's current application filed in Form 10AB for registration or approval u/s 80G(5) of the Income Tax Act, 1961. It is submitted that the order passed by Ld. CIT(E) is incorrect and illegal both on facts and on law and the same be deleted. 2. Your Appellant submits that Ld. CIT(E) has wrongly interpreted various clauses of the Appellant Trust Deed The Ld. ITA No. 1580/Ahd/2024 Shalimar Charitable Trust vs. CIT(E) Asst.Year –NA - 2– CIT(E) has misconstrued the Trust's objectives as being for the benefit of a specific religious community or caste, namely Muslims as this community is effectively public at large. This interpretation is entirely erroneous and unjustified, and the clause is of relief to all without cast or credit. The order passed by the Ld. CIT(E) is, therefore, unsustainable and should be quashed. 3. The Ld. CIT(E) erred by passing the order without properly considering the appellant's submission to the Show Cause notice and failing to provide an adequate opportunity to be heard. This violation of natural justice renders the order void ab initio. It is therefore prayed that the order be annulled and the appellant's application be approved 4. The order passed by the Ld. CIT(E) is legally flawed and contrary to both the provisions of the law and the facts of the case. It grossly disregards and violates the precedent set by the Honourable Supreme Court in the case of Ahmedabad Rana Caste Association v. CIT (1971) 82 ITR 704. It is therefore submitted that the same be held now. 5. Your appellant craves leave to add, alter, and/or to amend all or any of the grounds before the final hearing of the appeal. 3. The brief facts of the case are that assessee’s application for grant of registration u/s. 80G(5) of the Act, was denied on the ground that since the assessee Trust has been formed for the benefit of a “particular religious” community, it has violated the provision of section 80G(5)(iii) of the Act. 4. Before us, the Ld. Counsel for the assessee has filed the letter dated 27.01.2025, with a request for withdrawal of the present appeal on the ground that assessee would be filing a fresh application with revised objects before the concerned Charity Commissioner. The request for withdrawal of appeal filed by the Ld. Counsel for the assessee is reproduced below for ready reference. ITA No. 1580/Ahd/2024 Shalimar Charitable Trust vs. CIT(E) Asst.Year –NA - 3– 5. In view of above, the appeal of the assessee is dismissed as withdrawn. This Order pronounced in Open Court on 29.01.2025 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER (True Copy) Ahmedabad; Dated 29.01.2025 Manish, Sr. PS TRUE COPY ITA No. 1580/Ahd/2024 Shalimar Charitable Trust vs. CIT(E) Asst.Year –NA - 4– आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ(अपील) / The CIT(A)- 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडᭅ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "