SHREE AKHIL KUTCH LOHANA MAHAJAN,BHUJ V. CIT(EXEMPTION), AHMEDABAD

ITA 9/RJT/2025

AI Insights

The case involves Shree Akhil Kutch Lohana Mahajan, a trust, appealing against the decision of the Commissioner of Income-tax (Exemption), Ahmedabad, which rejected the trust's application for exemption under Form No. 10AB read with section 12A(1)(ac)(iii) of the Income-tax Act, 1961. The Commissioner had found that the trust failed to provide sufficient documentary evidence to prove the genuineness of its activities and that these activities were not in consonance with the trust's objectives. The Tribunal noted that the trust submitted documents at the fag-end of the proceedings, which were not considered by the Commissioner, and thus decided to remit the matter back for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705870 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• 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: SANJAY PUNGLIA
• Assessee Lawyers: R.B. SHAH
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice

Judgement Text

"ITA No.09/Rjt/2025 Sh. Akhil Kutch Lohana Mahajan 1 आयकर अपीलȣय अͬधकरण,राजकोट Ûयायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं/.ITA No.09/RJT/2025 Shree Akhil Kutch Lohana Mahajan Near V D High School, Bhuj Kutch-370 001 बनाम Vs. Commissioner of Income-tax (Exemption), Ahmedabad, Room No.609, Aaykar Bhawan, Vajalpur, Near Sachin Tower, 100 Foot Road, Anandnagar- Prahladnagar Road-380 015 Öथायीलेखासं /. जीआइआरसं /. PAN/GIR No. AAHTS 2975 F (अपीलाथȸ/Appellant) .. (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri R.B. Shah, AR राजèव कȧ ओर से/Revenue by : Shri Sanjay Punglia, CIT-DR सुनवाई कȧ तारȣख /Date of Hearing : 06/05/2025 घोषणा कȧ तारȣख /Date of Pronouncement : 30/06/2025 आदेश/Order Per Dr. Arjun Lal Saini, A.M Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption)- Ahmedabad, [in short “the ld. CIT(E)”], vide order dated 13.11.2024 wherein ld. CIT(E) rejected assessee’s application filed in Form No.10AB r.w.s. 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) holding that assessee Trust has failed to file documentary ITA No.09/Rjt/2025 Sh. Akhil Kutch Lohana Mahajan 2 evidences to satisfy the genuineness of activities of the trust and the activities of the trust are not in consonance with objects of the trust. 2. At the outset, Ld. Counsel for the assessee submitted that during proceedings before ld. CIT(E) assessee submitted details documents and evidence on the same date on which Ld.CIT(E) framed the order. Therefore, it may be possible that Ld.CIT(E) might have not seen the submission of the assessee and documents of the assessee and therefore, assessee’s documents were overlooked, hence, rejected the assessee’s application in Form-10AB, u/s 12A(1)(ac)(iii) of the Act. Therefore, Ld. Counsel contended that one more opportunity should be given to assessee to plead its case again before Ld.CIT(E) in the interest of justice, so that assessee can submit necessary documents to prove his claim/contention. 3. On the other hand, ld. CIT-DR for the Revenue submitted that during proceedings before Ld.CIT(E), the Ld.CIT(E) has issued show cause letter twice, however, assessee has not made compliance. The details, documents and evidences were filed before Ld.CIT(E) at the fag-end of the proceedings. Therefore, heavy cost should be imposed on assessee on account of non-compliance attitude and matter may be remitted back to the file of Ld.CIT(E) for afresh adjudication in accordance with law. 4. We have head both the parties. Considering the above facts, we note that assessee has filed details documents and evidence before Ld.CIT(E) ITA No.09/Rjt/2025 Sh. Akhil Kutch Lohana Mahajan 3 on 13.11.2024 at the fag-end of proceedings and Ld.CIT(E) framed the order on 13.11.2024. It is also to be noted that assessee did not make compliance of other notices issued by Ld.CIT(E). Therefore, on account of non-compliance attitude of the assessee we impose cost of Rs.2,000/- (Rupees two thousand only) which shall be deposited in the Prime Minister Relief Fund, within 15 days from the date of receipt of this order. We further note that during proceedings before Ld.CIT(E) the assessee submitted details and documents, however, these details documents were submitted at the fag-end of proceedings, therefore, Ld.CIT(E) has not considered these documents and details. Hence, we are of the view that one more opportunity should be given to the assessee to file the relevant documents and evidences before ld. CIT(E) as and when call by Ld. CIT(E). We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest its case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(E) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(E) and remit the matter back to the file of the ld. CIT(E) to adjudicate the issue afresh on merits. The assessee is directed to file required details and documents before Ld.CIT(E) as and when called for. For statistical purposes, the appeal of the assessee is treated as allowed. ITA No.09/Rjt/2025 Sh. Akhil Kutch Lohana Mahajan 4 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 30/06/2025 Sd/- Sd/- (DINESH MOHAN SINHA) (DR. ARJUNLAL SAINI) Æयाियक सदÖय/JUDICIAL MEMBER लेखा सदÖय/ACCOUNTANT MEMBER राजकोट /Rajkot िदनांक/ Date: 30/06/2025 DKP Outsourcing Sr.P.S आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File By order/आदेशसे , सहायकपंजीकार आयकर अपीलीय अिधकरण ,राजकोट "