SHRI CHINTAMANI EDUCATION CHARITABLE TRUST,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 352/AHD/2025

AI Insights

The case involves Shri Chintamani Education Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their application for registration under Section 10AD and the provisional registration previously granted. The primary issue was the alleged failure of the trust to provide sufficient documentation to demonstrate the genuineness of its activities and compliance with the objectives of the trust as required under Section 12A of the Income Tax Act. The tribunal noted the trust's admission of lapse in compliance but allowed the appeal to give the trust another opportunity to present the required documentation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396294 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Section 10AD of the Income Tax Act, Section 12A of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHESH R REWAR
• Assessee Lawyers: TEJ SHAH
• Keywords: Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.352/Ahd/2025 (Assessment Year: N.A.) Shri Chintamani Education Charitable Trust, A-11, Shivanjali Society Manjalpur, Vadodara-390011 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAGTS1742P] (Appellant) .. (Respondent) Appellant by : Shri Tej Shah, Advocate Respondent by: Shri Ashesh R Rewar, CIT DR Date of Hearing 15.05.2025 Date of Pronouncement 26.05.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 24.12.2024. 2. The Assessee has taken the following grounds of appeal:- “1. The Ld. CIT erred in law and in the facts of the case in rejecting the application for registration u/s 10AD of the act. 2. The Ld. CIT erred in law and in the facts of the case in rejecting the provisional registration which was granted earlier.” 3. The brief facts of the case are that the assessee filed application for grant of approval under Section 12A of the Act in Form No. 10A, for the impugned year under consideration. In response to the application filed by the assessee / applicant trust, Ld. CIT(E) asked the assessee to provide certain ITA No. 352/Ahd/2025 Shri Chintamani Education Charitable Trust vs. CIT(E) Asst.Year –N.A. - 2– details / documents vide notices dated 13.08.2024 and 09.10.2024. However, Ld. CIT(E) observed that in response to the said notices, the assessee vide it’s reply dated 24.10.2024 only submitted an excel sheet with no relevant details as called for. Accordingly, Ld. CIT(E) dismissed the application for grant of approval with the following observations: “7. As discussed above, the applicant/assessee has failed to file documentary evidences to enable me to satisfy about: i. Genuineness of the activities of the trust or institution. ii. That the activities of trust or institution are in consonance with the objects of the trust or institution. iii. That other laws material for the purpose of achieving objects are complied with. 8. In view of the above, the present application filed in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act is rejected and also your provisional registration stands cancelled.” 4. Before us, the Counsel for the assessee submitted that in this case admittedly, there was lapse on the part of the assessee / applicant trust in complying with the notices by Ld. CIT(E) and the assessee / applicant trust could not file the requisite details as called for by Ld. CIT(E). However, the Counsel for the assessee submitted that if given an opportunity, then the assessee / applicant trust shall duly comply with notices of hearing issued by Ld. CIT(E) and file necessary details as called for in support of it’s application. 5. Accordingly, looking into the instant facts, the matter is hereby directed to be restored to the file of Ld. CIT(E) for de-novo consideration. However, we make it clear that in case there is further non-compliance on the part of the assessee / applicant in response to notices issued by Ld. CIT(E) ITA No. 352/Ahd/2025 Shri Chintamani Education Charitable Trust vs. CIT(E) Asst.Year –N.A. - 3– then he would be at liberty to pass appropriate orders, in accordance with law, on the basis of material available on record. 6. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 26/05/2025 Sd/- Sd/- (DR. BRR KUMAR) (SIDDHARTHA NAUTIYAL) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated 26/05/2025 TANMAY, Sr. PS TRUE COPY 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, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 20.05.2025 2. Date on which the typed draft is placed before the Dictating Member 20.05.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 20.05.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement .05.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 26.05.2025 7. Date on which the file goes to the Bench Clerk 26.05.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… "