SHRAVAN SEVA FOUNDATION,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2163/AHD/2024

AI Insights

The case involves Shravan Seva Foundation, a Section 8 company, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Ahmedabad, rejecting their application for registration under section 80G of the Income Tax Act, 1961. The CIT(E) had rejected the application due to the assessee's failure to respond to notices seeking details and documentary evidence. The Tribunal noted that the rejection was based on procedural lapses and not on the genuineness of the foundation's activities. The Tribunal also considered the assessee's claim that they were unaware of the notices due to issues with email access and the lack of a specific show-cause notice before the cancellation of provisional approval.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29693 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. P. SINGH
• Assessee Lawyers: SANKET BAKSHI
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Procedural lapse
• Section: 80G; 20

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “सी“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0015ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.2163/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : NA Shravan Seva Foundation 18, Kishan Complex Opp. Yash Complex Subhanpura Vadodara – 390 023 बनाम/ v/s. The CIT (Exemption) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: ABGCS 8130 B (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Sanket Bakshi, AR Revenue by : Shri A.P. Singh, CIT-DR सुनवाई की तारीख/Date of Hearing : 20 /03/2025 घोषणा की तारीख /Date of Pronouncement: 20 /03/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: This appeal has been filed by the assessee against the order of the learned Commissioner of Income Tax (Exemptions), Ahmedabad [hereinafter referred to as \"CIT(E)\"], dated 21/11/2024, rejecting the assessee’s application for registration under section 80G of the Income Tax Act, 1961 [hereinafter referred to as \"the Act\"]. 2. The assessee is a Section 8 Company incorporated under the provisions of the Companies Act, 2013. The assessee had applied for approval under ITA No.2163/Ahd/2024 Shravan Seva Foundation vs. CIT(E) 2 section 80G of the Act in Form No. 10AB under the first proviso to section 80G(5). The CIT(E) issued notices dated 10/09/2024 and 24/10/2024 to the assessee, seeking necessary details and documentary evidence in support of the application. However, the assessee did not respond to these notices, leading the CIT(E) to reject the application ex-parte and cancel the provisional approval previously granted. 3. Aggrieved by the order of the CIT(E), the assessee is in appeal before us with following grounds of appeal: 1. The learned Commissioner of Income Tax, Exemptions, Ahmedabad (\"the CIT\") erred in fact and in law in rejecting the application for registration us. 80G of the Income Tax Act, 1961 (\"the Act\"). 2. The learned CIT erred in fact and in law in rejecting the application for registration u/s. 80G of the Act without giving a proper opportunity of being heard. 3. Your Appellant craves the right to add, to alter, to substitute, delete or modify all or any of the above grounds of appeal. 4. Before us, the learned Authorized Representative (AR) of the assessee submitted that the email ID mentioned in the application form was not accessed by the assessee, and therefore, it was unaware of the notices issued by the CIT(E). The AR also stated that the CIT(E) did not issue a specific show cause notice before cancelling the provisional approval, thereby violating the principles of natural justice. 5. We find that the rejection of the application was primarily based on non-compliance with procedural requirements rather than a substantive finding regarding the genuineness of the activities of the institution. It is a ITA No.2163/Ahd/2024 Shravan Seva Foundation vs. CIT(E) 3 settled principle of law that no adverse order should be passed without granting a proper opportunity of being heard. In this case, the assessee contends that it was not aware of the notices due to issues with email access and that no specific show-cause notice was issued before cancelling the provisional approval. 5.1. We also note that the rejection was not based on any adverse finding regarding the genuineness of the institution but solely on procedural lapses. Considering this fact, we deem it appropriate to restore the case to the file of the CIT(E) for fresh consideration. 5.2. The learned Departmental Representative (DR), on the other hand, did not raise any objections to the restoration of the matter to the CIT(E) for fresh adjudication. 5.3. In view of the above, we set aside the impugned order of CIT(E) and restore the matter to the file of the CIT(E) for fresh adjudication after providing a reasonable opportunity to the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 20th March, 2025 at Ahmedabad. Sd/- Sd/- ( SANJAY GARG ) JUDICIAL MEMBER ( MAKARAND V. MAHADEOKAR ) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 20 /03/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS ITA No.2163/Ahd/2024 Shravan Seva Foundation vs. CIT(E) 4 आदेश की \"ितिलिप अ#ेिषत/Copy of the Order forwarded to : 1. अपीलाथ$ / The Appellant 2. \"%थ$ / The Respondent. 3. संबंिधत आयकर आयु& / Concerned CIT 4. आयकर आयु& ) अपील ( / The CIT(E)- Ahmedabad 5. िवभागीय \"ितिनिध , अिधकरण अपीलीय आयकर , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स%ािपत \"ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 20.3.2025 2. Date on which the typed draft is placed before the Dictating Member. : 20.3.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 7. Date on which the file goes to the Bench Clerk. : 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 Despatch of the Order : "