SHREE B M PATEL EDUCATION AND CHARITABLE TRUST ,MEHSANA V. THE CIT (EXEMPTION) , AHMEDABAD

ITA 1999/AHD/2025

AI Insights

The case involves Shree B M Patel Education And Charitable Trust appealing against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied the grant of registration under Section 12AB and Section 80G of the Income Tax Act. The tribunal noted that the assessee was not properly served with notices regarding the rejection of their application, leading to a lack of opportunity to present their case. The tribunal's decision to allow the appeals for statistical purposes and restore the matter for re-evaluation was influenced by these procedural oversights.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786809 (ITAT-AHMEDABAD)
• Duration Of Justice: 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 23-10-2025
• Laws Referred To: Section 12AB of the Income Tax Act, Section 80G of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: RAJENDRA K SHAH
• Keywords: Condonation of delay; Charitable institution
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER I.T.A. Nos.1998&1999/Ahd/2025 (Assessment Year: NA) Shree B M Patel Education And Charitable Trust, 2nd Floor, Uma Market, Opp. S T Stand, Visnagar, Mehsana-384315 Vs. Commissioner of Income Tax Officer (Exemption), Ahmedabad [PAN No.AAITS0477M] (Appellant) .. (Respondent) Appellant by : Shri Rajendra K Shah, AR Respondent by: Shri Alpesh Parmar, CIT-DR Date of Hearing 18.11.2025 Date of Pronouncement 19.11.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: These appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide orders dated 21.11.2024. Since common facts and issues are involved for both the years under consideration, both the cases are taken up together. First we shall take up the assessee’s appeal in ITA No. 1998/Ahd/2025 The issue in the present appeal relates to denial of grant of registration under Section 12AB of the Act 2. The Assessee has taken the following grounds of appeal:- “The learned CIT (Exemption) has erred in law rejecting the renewal application filed by the assessee Form No. 10AB SUB CLAUSE (iii) OF CLAUSE (ac) OF Sub Section (1) of Section 12A, without giving proper opportunity. The learned CIT has erred in law in not considering the documents filed at the time of granting provisional certificates, for verifying the Trust Activities. Printed from counselvise.com ITA Nos. 1998&1999/Ahd/2025 Shree B M Patel Education And Charitable Trust vs. CIT(E) Asst.Year –NA - 2– The learned CIT (Exemption) has erred in law in rejecting the application without giving proper opportunity, a fresh opportunity to be granted to the assessee directing the CIT (Exemption) to consider, the documents having on record or taking fresh evidences from the assessee’s.” 3. At the outset, we not that the present appeals are time barred by 265 days. The Counsel for the assessee has filed an application for condonation of delay alongwith an Affidavit. In the said Affidavit, the assesse has submitted that purportedly two notices were issued to the asessee dated 06.08.2024 and 25.10.2024, but the said notices were neither served by a Registered Post AD to the assessee trust nor were the same received on the email registered with the Income Tax Portal. Accordingly, neither could the assessee trust make any appearance before CIT(E) in response to the two notices issued by him and neither could the appeal be filed within the stipulated timelines since the assessee trust had no knowledge with regards to the rejection of application by CIT(E). Thereafter, the assessee trust appointed a new Chartered Accountant, Shri Rajendra K Shah and on verification, the Trust was informed that the application has been rejected by CIT(E) vide order dated 21.11.2024. Immediately thereafter, the assessee filed appeal before the ITAT and also filed the present application for condonation of delay. 4. In light of the above facts, the Counsel for the assessee submitted that it was for the aforesaid reasons that there was a delay in filing of the present appeal and also in absence of service of notices by Ld. CIT(E), the asessee could not cause appearance before CIT(E) thereby leading to denial of grant of registration under Section 12AB of the Act. 5. On going through the contents of the Affidavit and the argument of the Counsel for the assessee before us, we are inclined to condone the delay in the interest of justice. Further, on going through the contents of Printed from counselvise.com ITA Nos. 1998&1999/Ahd/2025 Shree B M Patel Education And Charitable Trust vs. CIT(E) Asst.Year –NA - 3– the order, passed by Ld. CIT(E) rejecting grant of registration under Section 12AB of the Act, we note that while rejecting the application he 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.” 6. However, in view of the submissions of the Counsel for the assessee, we observe that since the assessee did not get an opportunity of making any representation before Ld. CIT(E), in the interest of justice, the matter may be restored to the file of Ld. CIT(E) for de-novo consideration, after giving opportunity to the assesee of being heard. However, we also make it clear that the assessee shall be vigilant and is directed to promptly comply with all notices of hearing issued by Ld. CIT(E) and if there is any further failure on part of the assessee trust to cause appearance before Ld. CIT(E), he would be at liberty to pass appropriate orders, on the basis of material available on record. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Now we shall deal with assessee’s appeal in ITA No. 1999/Ahd/2025 The issue in this appeal is with regards to denial of registration under Section 80G of the Act Printed from counselvise.com ITA Nos. 1998&1999/Ahd/2025 Shree B M Patel Education And Charitable Trust vs. CIT(E) Asst.Year –NA - 4– 8. The assessee has raised the following grounds of appeal: “The learned CIT (Exemption) has erred in law rejecting the renewal application filed by the assessee Form No. 10AB Under Clause (iii) of First Proviso to sub- section (5) of section80G without giving proper opportunity. The learned CIT has erred in law in not considering the documents filed at the time of granting provisional certificates, for verifying the Trust Activities. The learned CIT (Exemption) has erred in law in rejecting the application without giving proper opportunity, a fresh opportunity to be granted to the assessee directing the CIT (Exemption) to consider, the documents having on record or taking fresh evidences from the assessee’s.” 9. Since common facts and issues for consideration are involved for both the years under consideration this appeal is also restored to the file of Ld. CIT(E) for de-novo consideration. 10. In the combined result, both appeals of the assessee are allowed for statistical purposes. This Order pronounced in Open Court on 19/11/2025 Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 19/11/2025 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 1. Date of dictation 18.11.2025 2. Date on which the typed draft is placed before the Dictating Member 18.11.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 19.11.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 19.11.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 19.11.2025 7. Date on which the file goes to the Bench Clerk 19.11.2025 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 Dispatch of the Order…………………………………… Printed from counselvise.com "