SHREE KUTTCH KATHIYAWAD GUJARAT GARASHIYA ASSOCIATION,RAJKOT V. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

ITA 176/AHD/2026

AI Insights

The case involves the Shree Kuttch Kathiyawad Gujarat Garashiya Association appealing against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their application for registration under section 12A(1)(ac)(iii) of the Income Tax Act. The rejection was based on the assessee's failure to comply with requests for details and documents to verify the genuineness of the trust's activities. The appeal was delayed due to the death of a trustee responsible for handling the tax matters, which the tribunal found to be a reasonable cause for the delay. Both parties agreed to set aside the matter to allow the assessee another opportunity to comply with the CIT(E)'s requirements.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840085 (ITAT-AHMEDABAD)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 26-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: VIMAL DESAI
• Keywords: Set aside
• Section: 11

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No. 176/AHD/2026 Assessment Years: NA Shree Kuttch Kathiyawad Gujarat Garashiya Association, 5 – Rajput para, Gondal Road, Rajkot, Gujarat – 360002 [PAN – AATTS0525P] Vs. The Commissioner of Income Tax (Exemption), Ahmedabad - 380015 (Appellant) (Respondent) Assessee by Shri Vimal Desai, A.R Revenue by Shri Alpesh Parmar, CIT-D.R Date of Hearing 23.02.2026 Date of Pronouncement 25.02.2026 O R D E R PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER: This appeal is filed by the Assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad, [in short “CIT(E)”] dated 02.09.2024 in the proceeding u/s. 12A(1)(ac)(iii) of the Income Tax Act. 2. There was a delay of 422 days in filing of this appeal. The assessee has filed a condonation application explaining the reason for delay. It has been submitted that the matter regarding Income Tax proceeding was being handled by one of the trustee, Shri Pravinsinh U. Jadeja, who had expired on 09.09.2024. Due to his death there was no one to look after Printed from counselvise.com ITA No. 176/Ahd/2026 Shree Kuttch Kathiyawad Gujarat Garashiya Association Vs. CIT(E) 2 the Income-tax affairs and the order of the Ld. CIT(E) was not received physically. The assessee came to know about the rejection of the application on receiving the intimation u/s. 143(1) for A.Y. 2024-25 on 03.01.2026 wherein the claim of exemption u/s. 11 of the Act was denied. Thereafter, the present appeal was immediately filed. The assessee has explained that the delay in filing of appeal was not intentional but due to unavoidable circumstances. We have considered the submissions of the assessee. A copy of the death certificate of Shri Pravinsinh U. Jadeja, the trustee of the assessee is also brought on record. Considering the explanation of the assessee, the delay in filing the present appeal is condoned. 3. The brief facts of the case are that the assessee had filed an application for registration u/s. 12A(1)(ac)(iii) of the Act. The Ld. CIT(E) had required the assessee to furnish certain details and documents which was not complied. Since the CIT(E) was not satisfied about the genuineness of the activities of the trust the application for registration u/s. 12A(1)(ac)(iii) was rejected vide the impugned order. 4. The assessee is now in appeal before us. The following grounds have been taken in this appeal: 1. The order u/s. 12A(1)(ac)(ii) of the Act is bad in law. 2. The learned CIT(Exemption) has erred in la as well as on facts for rejecting the application for registration u/s. 12A(1)(ac)(iii) of the Act and cancelling the provisional registration earlier granted. 5. Shri Vimal Desai, the Ld. AR of the assessee submitted that there was no compliance before the Ld. CIT(E) for the reason that Shri Pravinsinh U. Jadeja, the trustee responsible for handling this work could not attend the proceedings due to his ill health and subsequently he had Printed from counselvise.com ITA No. 176/Ahd/2026 Shree Kuttch Kathiyawad Gujarat Garashiya Association Vs. CIT(E) 3 expired on 09.09.2024. The Ld. AR, therefore, requested that the assessee may be allowed another opportunity to submit the details and documents by setting aside the matter to the file of Ld. CIT(E). 6. Per contra, Shri Alpesh parmar, The Ld. CIT-DR had no objection if the matter was set aside to the file of Ld. CIT(E) for allowing another opportunity to the assessee. 7. We have considered the request of the assessee. It is true that no compliance was made before the Ld. CIT(E) in spite of two opportunities provided by him. This lapse has been explained due to ill health and subsequent death of the trustee Shri Pravinsinh U. Jadeja, who was handling this matter. We, therefore, deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to allow another opportunity to the assessee to furnish the details and documents as required and thereafter re-adjudicate the application of the assessee regarding registration u/s. 12A(1)(ac)(iii) of the Act. The assessee is also directed to make compliance before the Ld. CIT(E) and produce the details and documents as required by him. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the Court on 25/02/2026 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 25th February, 2026 Neelesh Kumar True Copy Printed from counselvise.com ITA No. 176/Ahd/2026 Shree Kuttch Kathiyawad Gujarat Garashiya Association Vs. CIT(E) 4 आदेश आदेश आदेश आदेश क\u0002 क\u0002 क\u0002 क\u0002 \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप अ ेिषत अ ेिषत अ ेिषत अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b यथ\u0007 / The Respondent. 3. संबंिधत आयकर आयु / Concerned CIT 4. आयकर आयु (अपील) / The CIT(A) 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड\u0014 फाईल /Guard file. आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/BY ORDER, उप उप उप उप/सहायक सहायक सहायक सहायक पंजीकार पंजीकार पंजीकार पंजीकार (Dy./Asstt.Registrar) आयकर आयकर आयकर आयकर अपीलीय अपीलीय अपीलीय अपीलीय अिधकरण अिधकरण अिधकरण अिधकरण, अहमदाबाद अहमदाबाद अहमदाबाद अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "