SHRI DASHA KHADAYATA VANIK PANCH SAVLI,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1617/AHD/2025

AI Insights

This case involves an appeal by Shri Dasha Khadayata Vanik Panch Savli against the order of the CIT(Exemption), Ahmedabad, which rejected their application for registration under Section 12A of the Income Tax Act, 1961, and cancelled their provisional registration. The primary issues were the procedural delay in filing the application and the interpretation of the trust's objects concerning public benefit. The tribunal found that the CIT(Exemption) had not adequately considered the financials or the broader charitable activities of the trust and thus remanded the case for further examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778763 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 25-08-2025
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: SURENDRA MODIANI
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before Ms. Suchitra Kamble, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member Shri Dasha Khadayata Vanik Panch Savli Doshi Vaga, Savli, Baroda, Gujarat PAN: AABTS2161H (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee by: Shri Surendra Modiani, A.R. Revenue by: Shri Rignesh Das, CIT-D.R. Date of hearing : 15-10-2025 Date of pronouncement : 17-10-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 28-06- 2025 passed by CIT(Exemption), Ahmedabad. 2. The grounds of appeal are as under:- “1. That the Learned Commissioner of Income Tax (Exemption), Ahmedabad, has erred in law and facts by rejecting the application in Form No 10AB under section 12A(1)(ac)(iii) of the Income Tax Act 1961 for the Registration under section 12A of the Act and further cancelling of provisional registration granted under Form 10AC dated 23- 09-2021 Your Honors are requested to direct the Commissioner of Income Tax (Exemption) to grant registration under section 12A of the Act and the provisional registration shall not be cancelled. ITA No. 1617/Ahd/2025 Printed from counselvise.com I.T.A No. 1617/Ahd/2025 Shri Dasha Khadayata Vanik Panch Savli 2 2. That the Learned Commissioner of Income Tax (Exemption), Ahmedabad has erred in law and facts by giving direction that applicant should compute its tax liability under section 115TD of Income Tax Act, 1961 read with Rule 17CB of IT Rules and report the same in return of Income and also pay the tax so computed within timeline provided under section 115TD(5) of Income Tax Act, 1961. The said direction is required to quashed. That the appellant craves leave to add, amend or withdraw any ground of appeal before or during the hearing.” 3. The applicant/appellant filed application for registration in Form 10AB on 05.12.2024 seeking regular registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The CIT(E) issued notices seeking information and documents which were responded by the applicant/appellant vide letters dated 11.03.2025 and 26.03.2025. Only final show cause notice dated 12.06.2025 was not responded by the Managing Trustee who was handling the matter personally as he went abroad to visit his family. The CIT(E) rejected the application vide order dated 28.06.2025 for the reasons of delay in filing Form 10AB beyond the time prescribed under Section 12A(1)(ac)(iii) and the objects were confined to particular caste viz, Dasha Khadayata Vanik Panch holding that the trust is not for the benefit of the general public. 4. Being aggrieved by the order dated 28.06.2025 passed by the CIT(E), the applicant/appellant filed the present appeal. Printed from counselvise.com I.T.A No. 1617/Ahd/2025 Shri Dasha Khadayata Vanik Panch Savli 3 5. The Ld. AR submitted that the application in Form 10AB was filed after the due date and the extended timeline under CBDT Circular No. 7 of 2024 dated 25.04.2024, which allowed filing up to 30.06.2024. Thus, delay was purely procedural and unintentional. The trust was having valid provisional registration in Form 10AC up to A.Y. 2024- 25 and there was no lapse of charitable purpose. As relates to the objects, the Ld. AR submitted that the objects of the trust, though making reference to “Dasha Khadayata Vanik Panch” are not confined to that community only but open to all beneficiaries, irrespective of caste, or religion who meet the criteria for aid under its charitable activities. Besides that the Ld. AR submitted that the CIT(E) has not given any opportunity of hearing to the applicant/appellant before rejecting the application of the appellant trust. Therefore, the Ld. AR submitted that the matter may be remanded back to the file of the CIT(E) for proper adjudication on merits. 6. The Ld. DR relied upon the order of the CIT(E) and submitted that the trust is for only one community and not for general public. 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(E) has not gone through the financials of the the applicant/appellant trust as well as the aspect of the objects related to charity to the general public. Therefore, it will appropriate to remand this matter to the file of the Printed from counselvise.com I.T.A No. 1617/Ahd/2025 Shri Dasha Khadayata Vanik Panch Savli 4 CIT(E) and directed to verify the financials of the applicant/appellant trust as given under the provisions of Income Tax Act and thereafter adjudicate the same as per law. Needless to say, the applicant/appellant be given opportunity of hearing by following principles of natural justice. The appeal of the applicant/appellant is partly allowed for statistical purpose. 8. In result, appeal of the applicant/appellant is partly allowed for statistical purpose. Order pronounced in the open court on 17-10-2025 Sd/- Sd/- (Makarand V. Mahadeokar) (Suchitra Kamble) Accountant Member Judicial Member Ahmedabad : Dated 17/10/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "