SHREE 1008 PARSHWANATH DIGAMBAR JIN CHAITYALAY TRUST,JAIPUR V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 559/AHD/2025

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The case involves Shree 1008 Parshwanath Digambar Jin Chaityalay Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The rejection was primarily due to the trust's failure to comply with notices requesting additional documents and details required for the registration application. The tribunal considered the trust's explanation for non-compliance, which was attributed to the unavailability of their consultant, and decided to give the trust another opportunity to comply, emphasizing the importance of the trust's charitable activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713210 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: R S POONIA
• Section: 12A

Judgement Text

" आयकर अपील य अ धकरण, अहमदाबाद \u0014यायपीठ , अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ A” BENCH, AHMEDABAD ] BEFORE SHRI TR SENTHIL KUMAR, JUDICIAL MEMBER And SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 559/AHD/2025 िनधा\u0005रण वष\u0005/Asstt. Year: NA Shree 1008 Parshwanath Digambar Jin Chaityalay Trust C/o R. S. Poonia, D-82B, Siwad Area, Krishna Marg, Bapu Nagar, Jaipur – 302015 Rajasthan PAN: ABDTS2970H बनामVs . The Commissioner of Income Tax (Exemption), Ahmedabad. (अपीलाथ /Appellant ( यथ /Respondent) Assessee by : Shri R S Poonia, CA Revenue by : Shri Alpesh Parmar, CIT. DR सुनवाई की तारीख/Date of Hearing : 23/07/2025 घोषणा की तारीख /Date of Pronouncement: 30/07/2025 आदेश/O R D E R PER NARENDRA PRASAD SINHA, AM: This appeal is filed by the assessee against the order passed by the Commissioner of Income Tax (Exemption) Ahmedabad, (in short “the Ld. CIT(E)”) dated 13.11.2024, in the proceedings u/s. 12A(1)(ac)(iii) of the Income Tax Act, 1961 (in short “the Act”). Printed from counselvise.com ITA No.559/Ahd/2025 Asst. Year NA 2 2. There was a delay of 40 days in filing of this appeal. The assessee has filed a condonation application along with affidavit of Shri Himanshu Rasiklal Shah, trustee of the assessee-trust and explained the reason for the delay. It is submitted that the delay was for the reason that due to recent changes in the Act the assessee was not clear about the exact legal remedy available to the trust and it had taken time in consulting 2 to 3 consultants of different cities. Considering the explanation of the assessee, the delay in filing the appeal is condoned. 3. The brief facts of the case are that the assessee had made an application for registration u/s. 12A(ac)(iii) of the Act by filing Form No. 10AB. The Ld. CIT(E) noticed that the assessee did not furnish the documents enlisted in Rule 17A(2) along with the application. The Ld. CIT(E) has allowed opportunities to the assessee to furnish the details vide notice dated 27.08.2024 and 16.10.2024. However, there was no compliance to the notices. Therefore, the application of the assessee was rejected as the Ld. CIT(E) was not satisfied about the genuineness of the activities of the trust and the provision registration granted earlier was also cancelled. 4. Aggrieved with the Order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal: “1. That the order passed by Ld. Commissioner of Income Tax, Exemption, Ahmedabad by rejecting application u/s. 12A(1)(ac)(iii) of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same. 2. That the Ld. CIT (Exemption), Ahmedabad has erred in law and in facts of the case by neither recording the independent satisfaction for rejection of provisional registration and nor issued Show Cause Notice for rejection of provisional registration Printed from counselvise.com ITA No.559/Ahd/2025 Asst. Year NA 3 u/s. 12A of the I.T. Act 1961 which is wrong, unwarranted and bad in Law. Kindly restore the same. 3. That the Ld. CIT (Exemption), Ahmedabad has erred in law and in facts of the case in rejecting the provisional registration u/s. 12A without issuing separate DIN of the rejection order, which is against the circular & notification issued by the CBDT. So, the same is wrong, unwarranted and bad in Law. Kindly restore the same. 4. That the order passed by Ld. Commissioner of Income Tax (Exemption), Ahmedabad by rejecting provisional registration u/s. 12A of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same. 5. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them.” 5. Shri R S Poonia, Ld. AR appearing for the assessee explained that the non-compliance before the Ld. CIT(E) was due to the fault of the earlier consultant who could not attend the proceedings due to his other pre- occupations. The Ld. AR requested that the assessee is engaged in charitable activities and, therefore, another opportunity may be allowed to furnish the documents as required by setting aside the matter to the file of the Ld. CIT(E). 6. Per Contra Shri Alpesh Parmar, Ld. CIT. DR submitted that he has no objection if the matter is set-aside to the file of the Ld. CIT(E). 7. We have carefully considered the submissions of the assessee. We do not find any reasonable explanation for non-compliance before the Ld. CIT(E). In fact, the assessee was not careful and vigilant enough while filing the application in Form No. 10AB of the Act, as the documents enlisted in Rule 17A(2) were not attached along with the application. Thereafter, no compliance was made to the notices of the Ld. CIT(E) and the details and Printed from counselvise.com ITA No.559/Ahd/2025 Asst. Year NA 4 documents as required were not furnished. We therefore, deem it proper to impose a cost of Rs.5,000/- on the assessee, which should be deposited in “Prime Minister’s National Relief Fund” within a period of 15 days from the receipt of this order. Subject to the payment of cost, the Ld. CIT(E) is directed to allow one more opportunity to the assessee to furnish the details and documents as required and thereafter, re-adjudicate the application of the assessee. The assessee is also directed to comply before the Ld. CIT(E) and produce the document and clarification as required by him. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 30th July, 2025 at Ahmedabad. Sd S Sd/- Sd/- Sd/- (T.R SENTHIL KUMAR) JUDICIAL MEMBER (NARENDRA PRASAD SINHA) ACCOUNTANT MEMBER (True Copy) अहमदाबाद/Ahmedabad, \u0011दनांक/Dated 30/07/2025 आदेश क\u0017 \u0018त\u001aल\u001bप अ े\u001bषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आयु$त / Concerned CIT 4. आयकर आयु$त ) अपील ( / The CIT(A)-(NFAC) 5. \u001bवभागीय \u0018त\u0018न ध , आयकर अपील+य अ धकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड1 फाईल / Guard file. आदेशानुसार/ BY ORDER, स या\u001bपत \u0018त //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपील+य अ धकरण, ITAT, Ahmedabad Printed from counselvise.com "