SHRI DASALAD GYATI SAMAST KALOL,PANCHMAHAL V. THE CIT(EXEMPTION), AHMEDABAD

ITA 915/AHD/2024

AI Insights

The case involves Shri Dasalad Gyati Samast Kalol, a trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting its application for registration under section 12AB of the Income Tax Act, 1961. The primary contention was that the trust was a public charitable trust and thus entitled to registration. The Commissioner had rejected the application citing insufficient documentary evidence to prove that the trust was for the benefit of the public and not merely a religious trust. The Tribunal found merit in the assessee's request for a reconsideration and remanded the case back to the Commissioner for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712940 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHER SINGH
• Assessee Lawyers: S N DIVATIA
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T.R SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No.915/Ahd/2024 (Assessment Year: N.A) Shri Dasalad Gyati Samast Kalol, Dasalad Wadi, Nr. State Bank of India, Kalol, Panchmahal, Gujarat-389330. [PAN :AAETS2946 P] Vs. The Commissioner of Income Tax(Exemption), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri SN Divatia with Shri Samir Vora, ARs Respondent by: Shri Sher Singh CIT. DR Date of Hearing 30.07.2025 Date of Pronouncement 31.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the assessee against the order 28.03.2024 passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad. 2. The assessee has raised the following grounds of appeals: 1.1 The order passed by U/s.12AB passed on 28.03.2024 by CIT(Exem), Ahmedabad rejecting the application for registration of the appellant trust u/s 12A(1)(ac)(iii) of the Act and cancelling the provisional registration is wholly illegal, unlawful and against the principles of natural justice. Printed from counselvise.com ITA No. 915/Ahd/2024 Shri Dasalad Gyati Samast Kalol Vs. CIT Asst. Year : N.A - 2– 2.1 The Id. CIT(Exem), has grievously erred in law and or on facts in not appreciating fully and properly the submissions made and evidence produced by the appellant in support of the contention that it was a public charitable trust within the ambit of sec.2(15) of the Act so that it was entitled to registration u/s 12AB of the Act. 3.1 The Id. CIT(Exem), has grievously erred in law and or on facts in rejecting the application for registration u/s 12AB of the Act holding that the appellant trust was not for the benefit of public, though the appellant trust had produced enough evidence to prove that it was established and also carrying on activities for the general public utility. 3.2 That the in the facts and circumstances of the Id. CIT(Exem), ought not to have rejected the application for registration by mis-construing the object clause of the trust and disregarding the activities carried on by it which conclusively proved that the trust was established and carrying on for the advancement of general public utility and as such it was within the ambit of Sec. 2(15) of the Act. 3.3 The Id. CIT(Exem), has grievously erred in law and or on facts in not appreciating that the appellant was enjoying registration u/s 12A of old regime. 4.1 The Ld.CIT(Exem.) has grievously erred in law and or on fact in holding that the provisions of sec 13(1)(b) were applicable because the appellant was a religious trust and not composite trust. 4.2 That the in the facts and circumstances of the Ld.CIT(Exem), ought not to have held that the provisions of sec 13(1)(b) were applicable because the appellant was a religious trust and not composite trust. 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. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the I.T Act, 1961, since the assessee-trust failed to submit the substantial documentary evidences. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. Printed from counselvise.com ITA No. 915/Ahd/2024 Shri Dasalad Gyati Samast Kalol Vs. CIT Asst. Year : N.A - 3– 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 application of the assessee on the ground that the assessee-trust failed to produce substantial documents before the Ld.CIT(E). 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. The order is pronounced in the open Court on 31.07.2025. Sd/- Sd/- (T.R SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 31.07.2025 MV Printed from counselvise.com ITA No. 915/Ahd/2024 Shri Dasalad Gyati Samast Kalol Vs. CIT 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 "