SHREE SHANTIJIN JAMKAR PANSOVORA TRUST ,BANASKANTHA V. CIT(EXEMPTION), AHMEDABAD

ITA 1304/SRT/2024

AI Insights

The case involves the Shree Shantijin Jamkar Pansovora Trust appealing against the decision of the Commissioner of Income-tax (Exemption), Ahmedabad, which rejected their application for registration under section 12A of the Income-tax Act, 1961. The primary contention of the Trust was the lack of a reasonable opportunity of hearing before the CIT(E) made a decision. The Tribunal found merit in the Trust's argument that the principles of natural justice were not followed, as only one notice was issued and the application was rejected without a thorough consideration of the merits or the submissions made by the Trust.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313004 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH POPHARE
• Assessee Lawyers: KISHOR MALI
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 12A

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1304/SRT/2024 (Hybrid hearing) Shree Shantijin Jamkar Pansovora Trust Shantibazar Gurumandir Same, Dhanera TA Dhnera, Banaskantha - 385310 Vs. The CIT (Exemption), Ahmedabad èथायीलेखासं./जीआइआरसं./PAN/GIR No: ABCTS0587M (अपीलाथŎ/Appellant) (ŮȑथŎ /Respondent) Appellant by Shri Kishor Mali, CA Respondent by Shri Ashish Pophare, CIT-DR Date of Hearing 05/03/2025 Date of Pronouncement 30/04/2025 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal by assessee emanates from the order dated 17.10.2024 passed by the Commissioner of Income-tax (Exemption), Ahmedabad u/s 12A of the Income-tax Act, 1961 (in short, ‘the Act’) in rejecting application for registration of the trust in Form No.10AB u/s 12A of the Act. 2. Grounds of appeal raised by the assessee are as under: “1. On the facts and circumstances of the case as well as law on the subject, the ld. Commissioner of Income Tax (Exemption) has erred in rejecting the application made by the assessee trust without granting reasonable opportunity of hearing. 2. On the facts and circumstances of tee case as well as law on the subject, the ld. Commissioner of Income Tax (Exemption) has erred in not granting permanent registration to the assessee trust by rejecting the application filed in Form 10AB. 3. It is therefore prayed that order of ld. Commissioner of Income-tax (Exemptions) rejecting application of assessee may please be quashed. 2 ITA No.1304/SRT/2024 Shree Shantiji Jamkar Pansovora Trust 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 3. In the instant appeal, the CIT(E) rejected the application for registration u/s 12A of the Act by treating the application as non- maintainable. The ld. Authorized Representative (ld. AR) of the assessee submitted that proper opportunity of hearing was not given by the CIT(E). He submitted that in this case, only one notice was issued and the application was rejected without considering merits of the case and submission of the assessee. He submitted that the appellant is ready with all the details to satisfy the query of the CIT(E) in respect of the application for registration u/s 12A of the Act. He, therefore, requested that another opportunity may be given in the interest of justice and the matter may be set aside to the file of CIT(E). 4. On the other hand, the learned Commissioner of Income-tax - Departmental Representative (ld. CIT-DR) for the revenue submitted that the Bench may decide the applications, as it thinks fit. 5. We have heard both parties and perused the materials available on record. We find that the CIT(E) has issued only one notice on 14.06.2024 and proceeded to decide the appeal on the basis of the details available on record. The ld. AR submitted that all details are available with the appellant and one more opportunity may be granted to the appellant to plead its case on merit. Considering the above facts, we are of the view that the principles of natural justice have not been adhered to the instant case. It is settled law 3 ITA No.1304/SRT/2024 Shree Shantiji Jamkar Pansovora Trust that principles of natural justice require that the affected party is granted sufficient opportunity of being heard to present his case. Therefore, without delving much into the merits of the case, in the interest of justice, we restore the matter back to the file of CIT(E) for de novo adjudication and pass a speaking order after affording sufficient and reasonable opportunity of being heard to the assessee. The assessee is directed to furnish its submission and relevant details / documents before the CIT(E). For statistical purposes, the appeal of the assessee is treated as allowed. 6. In the result, appeals filed by the assessee are allowed for statistical purposes. Order is pronounced under provision of Rule 34 of ITAT Rules, 1963 on 30/04/2025. Sd/- Sd/- (SANJAY GARG) (BIJAYANANDA PRUSETH) JUDICIAL MEMBER ACCOUNTANT MEMBER Surat Ǒदनांक/ Date: 30/04/2025 SAMANTA Copy of the Order forwarded to: 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // TRUE COPY // Assistant Registrar/Sr. PS/PS ITAT, Surat "