SHREE LAXMINARAYAN EDUCATION AND CHARITABLE TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 340/AHD/2025

AI Insights

The appeals were filed by Shree Kashtbhanjan Education and Charitable Trust and Shree Laxminarayan Education and Charitable Trust against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their applications for registration under section 80G(5) of the Income Tax Act, 1961. The primary contention was that the trusts were wrongly categorized as charitable cum religious trusts, which allegedly violated provisions of section 80G(5)(ii) & 80G(5B). The trusts argued that their activities were not adequately considered, and they sought a remand for a thorough examination of their activities and compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781624 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 13-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: PARIN SHAH
• Keywords: Set aside; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.339/Ahd/2025 (Assessment Year: NA) Shree Kashtbhanjan Education and Charitable Trust, 20, Puskar Bunglows, Nikol Naroda Road, Ahmedabad-382350. [PAN :AAQTS5035 B] Vs. The Commissioner of Income Tax, (Exemption, Ahmedabad. And I.T.A. No.340/Ahd/2025 (Assessment Year: NA) Shree Laxminarayan Education and Charitable Trust, 20, Puskar Bunglows, Nikol Naroda Road, Ahmedabad-382350. [PAN :AAQTS5032 G] Vs. The Commissioner of Income Tax, (Exemption, Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Parin Shah, AR Respondent by: Shri Alpesh Parmar, CIT. DR Date of Hearing 30.09.2025 Date of Pronouncement 30.09.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- These two appeals have been filed by the different assessee against the separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, both dated 29.12.2024. Since the issues Printed from counselvise.com ITA Nos. 339 & 340/Ahd/2025 Asst. Year : N.A - 2– raised in these appeals are interconnected, we consider it appropriate to reproduce the grounds of appeal in ITA No.339/Ahd/2025 . ITA No.339/Ahd/2025 2. The assessee has raised the following grounds of appeal: “…1. The order passed by Ld.CIT(Exemption) is bad in law and required to be quashed. 2. Ld.CIT (Exemption) erred in rejecting application for registration u/s.80G(5) of the Act by observing that trust is charitable cum religious trust and thus violated provision of section 80G(5)(ii) & 80G(5B) of the Act. 3. Ld.CIT(Exemption) ought to have considered the fact and activities of the trust and ought to have granted registration. 4. Without prejudice to the above and in alternative, Appellant trust pray to set aside the case with direction to verify activities of the trust and ought to have granted registration…” 3. The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB under the provisions of the Act. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961, on the ground that the assessee-trust failed to furnish the requisite details/explanation and to establish the genuineness of its activities. 4. Aggrieved by the orders of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. 5. At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld. CIT(E) rejected the Printed from counselvise.com ITA Nos. 339 & 340/Ahd/2025 Asst. Year : N.A - 3– application of the assessee on the ground that that the assessee-trust failed to furnish substantial documents. Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld. CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that 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 /explanations submitted by the assessee. 7. In the result, both the appeal of the assessee are allowed for statistical purposes. The order is pronounced in the open Court on 30.09.2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) (True Copy) Ahmedabad; Dated 30.09.2025 MV Printed from counselvise.com ITA Nos. 339 & 340/Ahd/2025 Asst. Year : N.A - 4– 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, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "