SHREE GURUMAHARAJ PUNYASMRUTI SARVAMANGAL TRUSTUTI,SIDDHPUR V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 184/AHD/2025

AI Insights

The case involves Shree Gurumaharaj Punyasmruti Sarvamangal Trustuti, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, who rejected their application for approval under section 80G of the Income Tax Act, 1961. The rejection was based on non-compliance with requests for additional documentation and failure to respond to email notices. The tribunal found that the assessee, due to practical difficulties in accessing digital communication, was unable to comply fully with the CIT(E)'s requirements. Consequently, the tribunal remanded the case for fresh consideration, emphasizing the need for the CIT(E) to take into account the submissions of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126632 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATHVI RAJ MEENA
• Assessee Lawyers: VIVEK CHAVDA
• Keywords: Additional evidence; Principle of natural justice; Grounds of appeal; Commissioner; Commissioner of Income Tax; Statistical purposes; Trustee; Exempt; Trustees
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR.BRR KUMAR, VICE PRESIDENT & SHRI T.R SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No.184/Ahd/2025 (Assessment Year: NA) Shree Gurumaharaj Punyasmruti Sarvamangal Trustuti, C/o Dilipchai S Pandya, Dhoripole Naka, Sidhpur-384151. Vs. The Commissioner of Income Tax, (Exemption) Ahmedabad. [PAN No.AACTS3326H] Appellant by : Shri Vivek Chavda, AR Respondent by: Shri Prathvi Raj Meena, CIT. DR Date of Hearing 21.04.2025 Date of Pronouncement 23.04.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: The captioned appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, vide order dated 21.11.2024. 2. The Assessee has taken the following grounds of appeal:- 1.1 The learned CIT(Exemption) erred in law and on facts in rejecting the appellant's application for approval under section 80G of the Income Tax Act, 1961 by order dtd:21.11.2024. (अपीलाथᱮ /Appellant ( ᮧ᭜यथᱮ /Respondent) ITA No.184/Ahd/2025 Asst.Year –N.A - 2– 1.2 The learned CIT(Exemption) erred in cancelling the approval to the appellant under section 80G without providing sufficient and specific opportunity to the appellant to present its case. Therefore, the appellant shall be granted opportunity to produce additional evidences. 1.3 The learned CIT(Exemption) erred in treating non-response to email notices as non-compliance when: (a) The trustees had already demonstrated their compliance by submitting all required documents with Form 10AB (b) The inability to respond to notices was due to practical difficulties in accessing email, not willful non-compliance. (c) The trust has consistently maintained transparency in its operations. 1.4 The learned CIT (Exemption) erred in rejecting the application solely on the ground of non-submission of a note on activities and other unspecified details, without: (a) Considering the documents already submitted with the Form 10AB application (b) Examining the objects and activities mentioned in the trust deed (c) Verifying the financial statements and other documents on record. The learned CIT(Exemption) failed to appreciate that mere non- submission of additional information within the short time provided does not justify rejection of approval under section 80G. It is therefore prayed that the appellant may please granted registration u/s.80G in the interest of natural justice considering the eccentric facts of the case. ITA No.184/Ahd/2025 Asst.Year –N.A - 3– 3. The assessee is a Trust and filed Form No.10AB on 30.06.2024 for approval of registration u/s.80G(5)(iii) of the Income Tax Act, 1961 Act. In this regard, notices dated 10.09.2024 and 24.10.2024 through email were issued to the assessee-trust requesting to furnish details/documents. In pursuance to the same, the assessee-trust remains un- complied, and the documentary evidences called for were also not submitted. Hence, the Ld.CIT(E) rejected the application for registration u/s.80G(5)(ii) of the Act and also cancelled the provisional registration. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. 5. At the outset, we find that the Ld.CIT(E) has rejected the application filed in Form 10AB for approval u/s.80G(5)(iii) of the Act of the assessee-trust due to non-compliance and failed to submit any substantial document. The Ld.AR submitted that trustees being senior citizen is not having knowledge of digital communication and therefore unable to access and monitor the email account where these notices were sent and consequently considerable delay occurred. Therefore, prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Ld. CIT(DR) argued that the assessee needs to furnish the proof of filing the submissions before the Ld. CIT(E). Having considered the facts on record, we hold that ITA No.184/Ahd/2025 Asst.Year –N.A - 4– interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions filed by the assessee. However, a cost of Rs.5000/- imposed on the assessee, the amount should be deposited into “Prime Minister Relief Fund” and the receipt shall be submitted before the Ld.CIT(E), who shall take it on record before passing the fresh order. The assessee shall comply with the notices issued by the Ld.CIT(E) without seeking any unnecessary adjournments. 6. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 23.04.2025. Sd/- Sd/- (T.R SENTHIL KUMAR) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Copy) Ahmedabad; Dated 23.04.2025 Manish, Sr. PS TRUE COPY ITA No.184/Ahd/2025 Asst.Year –N.A - 5– 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 "