SHREE MAHUVA MOTA MAHAJAN SARVAJANIK TRUST,MAHUVA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2068/AHD/2024

AI Insights

The case involves Shree Mahuva Mota Mahajan Sarvajanik Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, who had rejected the trust's application for registration under section 12AB of the Income Tax Act, 1961. The rejection was primarily due to discrepancies in the trust's name and the failure to provide sufficient details to verify the genuineness of the trust's activities. The tribunal found that the trust had not submitted the required documents despite notices and thus could not establish the genuineness of its activities. However, the tribunal decided to remand the case back to the Commissioner to allow the trust an opportunity to present its case fully.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 102766 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2025
• 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: PARIMALSINH B. PARMAR
• Keywords: Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.TA. No.2068/Ahd/2024 (Assessment Year: NA) Shree Mahuva Mota Mahajan Sarvajanik Trust, Mani Mohan Dashashrimali-Ni Wadi, Shet Street, Mahuva, Gujarat-364290. Vs. The Commissioner of Income Tax(Exemption) Ahmedabad. [PAN No.AAATM2836Q] (Appellant) .. (Respondent) Appellant by : Shri Parimalsinh B. Parmar, AR Respondent by: Shri Prathvi Raj Meena, CIT.DR Date of Hearing 15.04.2025 Date of Pronouncement 16.04.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: Delay Condoned This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad vide order dated 27.03.2023. 2. The assessee has raised the following grounds of appeal 1. The Ld. CIT(Exemption) has erred in law and on facts of the case in rejecting the application for registration u/s. 12AB of the Act. ITA No. 2068/Ahd/2024 Asst.Year NA - 2– 2. The Ld. CIT(Exemption) has erred in law and on facts of the case in making a general observation about non furnishing of requisite details/documents despite furnishing all the details/documents called for and without even pointing out specific detail/document which is not furnished by the appellant. 3. The Ld. CIT(Exemption) has noticed the difference in name of the appellant as per the records of income tax department and Charity Commissioner, without appreciating the fact that the Appellant is one and the same. 4. The Ld. CIT(Exemption) has passed the order without properly appreciating the facts and he further erred in grossly ignoring various submissions, explanations and documentary evidence placed on record from time to time which ought to have been considered before passing the impugned order. The action of the CIT(Exemption) is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 5. The Appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 3. The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. However, Ld. CIT(E) rejected the application filed in Form No.12AB of the I.T Act, 1961, due to discrepancies in the name of trust and assessee failed to submit any details/explanation and genuineness of the activities of the Trust. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. ITA No. 2068/Ahd/2024 Asst.Year NA - 3– 5. At the outset, we noticed that inspite of notices issued, to submit the details/documents called for, the assessee-trust has not submitted any requisite details. Therefore, no verification of objects of the trust with regard to the genuineness of activities was carried out. Thus, the genuineness of the activities does not get established, due to lack of details/explanations submitted by the assessee-trust. 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. 6. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 16.04.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 16.04.2025 Manish, Sr. PS ITA No. 2068/Ahd/2024 Asst.Year NA - 4– TRUE COPY 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 "