SHRI ADTALISH GAM KADAVA PATIDAR SAMAJ,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 307/AHD/2025

AI Insights

The case involves Shri Adtalish Gam Kadava Patidar Samaj, a trust, appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which had rejected their application for registration under Section 80G(5)(iii) of the Income Tax Act, 1961. The initial rejection was based on the grounds that the trust's objectives were confined to a specific religious community and did not benefit the public at large, as required by the Act. The tribunal found that the assessee was not given a reasonable opportunity to present their case, leading to the decision to remand the matter back to the CIT (Exemption) for further consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790026 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 10-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: MEHUL K. PATEL
• Keywords: Set aside; Principle of natural justice

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No.307/Ahd/2025 Shri Adtalish Gam Kadava Patidar Samaj, 100, Swami Akhandanand Society, Rannapark, Ghatlodiya, Ahmedabad – 380 061. (Gujarat) [PAN – AAFTS 0408 K] Vs. The Commissioner of Income Tax (Exemption), Room No.609, Floor-6, Aayakar Bhavan (Vejalpur), Nr. Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad – 380 015. (Gujarat) (Appellant) (Respondent) Assessee by Shri Mehul K. Patel, AR Revenue by Shri Rignesh Das, CIT-DR Date of Hearing 04.11.2025 Date of Pronouncement 27.11.2025 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Ahmedabad (in short “the CIT(E)”) dated 19.12.2024 in the proceeding under Section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. The brief facts of the case are that the assessee had filed an application in Form No.10AB on 27.06.2024 for registration of the Trust under Section 80G(5)(iii) of the Act. Earlier the assessee was allowed provisional registration under Section 80G(5)(iv) of the Act from A.Y. 2023-24 onwards. The Ld. CIT(E) noticed that the object of the Trust was Printed from counselvise.com ITA No.307/Ahd/2025 Shri Adtalish Gam Kadava Patidar Samaj vs. CIT (Exemption) Page 2 of 4 confined towards benefit of a particular religious community or caste i.e. Shri Adtalish Gam Kadava Patidar Samaj only and not for the benefit of public at large. This, according to the Ld. CIT(E), contradicted the provisions of Section 80G(5)(iii) of the Act. Accordingly, a show cause notice was issued to the assessee, in response to which the assessee has sought adjournment. Thereafter, no compliance was made by the assessee and the Ld. CIT(E) had rejected the application of the assessee vide the impugned order. 3. Now the assessee is in appeal before us. The following grounds have been taken in this appeal: - “1. That on facts, and in the law, the learned CIT (Exemption) has grievously erred in not providing reasonable and sufficient opportunity of hearing and in rejecting the application for approval u/s.80G(5)(iii) of the Act vide ex-parte order. 2. That on facts, and in law, the learned CIT (Exemption) has grievously erred in holding that the appellant is not entitled to approval u/s.80G as it is not for the benefit of public at large, but only for benefit of particular caste/religion. 3. The appellant craves liberty to add, alter, amend any ground of appeal.” 4. Shri Mehul K. Patel, Ld. AR of the assessee, submitted that the assessee was not allowed any reasonable and sufficient opportunity by the Ld. CIT(E). He explained that vide show cause notice dated 29.11.2024 only four days’ time was given for compliance and accordingly, the assessee had requested for further time. However, considerable time was taken to consult the Counsel and prepare the reply to the show cause notice. In the meanwhile, the Ld. CIT(E) vide the impugned order had rejected the application of the assessee without waiting for the clarification of the assessee. He further submitted that the Printed from counselvise.com ITA No.307/Ahd/2025 Shri Adtalish Gam Kadava Patidar Samaj vs. CIT (Exemption) Page 3 of 4 Ld. CIT(E) was not correct in rejecting the application only on the basis of one of the clauses of the object as reproduced in his order. The Ld. AR, therefore, requested that the assessee may be allowed another opportunity to explain the objects by setting aside the matter to the file of the Ld. CIT(E). 5. Per contra, Shri Rignesh Das, Ld. CIT-DR, had no objection if the matter was set aside to the Ld. CIT(E) for allowing one more opportunity to the assessee. 6. We have considered the rival submissions. It is found that the Ld. CIT(E) had allowed only one opportunity to the assessee vide show cause notice dated 29.11.2024 to which the assessee had sought adjournment. It is true that the assessee did not make any compliance before the Ld. CIT(E). However, in the interest of natural justice, another opportunity should have been allowed by the Ld. CIT(E) to the assessee to explain the objects of the Trust. Therefore, we deem it proper to set aside the matter to the file of Ld. CIT(E) with a direction to allow one more opportunity to the assessee to explain the objects of the trust and also about the satisfaction of the conditions as stipulated under Section 80G(5) of the Act. 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on this 27th November, 2025. Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Ahmedabad, the 27th November, 2025 Printed from counselvise.com ITA No.307/Ahd/2025 Shri Adtalish Gam Kadava Patidar Samaj vs. CIT (Exemption) Page 4 of 4 PBN/* Copies to: (1) The appellant (2) The respondent (3) The PCIT (4) The CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPYE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad Printed from counselvise.com "