SHRI KRISHNA FOUNDATION,AHMEDABAD V. CIT(EXEMPTION), AHMEDABAD, CIT(EXEMPTION), AHMEDABAD

ITA 479/AHD/2025

AI Insights

The case involves Shri Krishna Foundation, a trust, which appealed against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their applications for registration under section 12AB and cancelling provisional registration under section 12AB(1)(c) of the Income Tax Act, 1961. The Tribunal found that the Commissioner had not adequately considered the submissions and documents provided by the trust, leading to a decision to remand the case for a fresh evaluation. The Tribunal also noted the practical difficulties faced by the trust in responding to email notices, which were not willful non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708468 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• 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: R P RASTOGI
• Assessee Lawyers: VIVEK CHAVDA
• Keywords: Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. Nos.478-479/Ahd/2025 (Assessment Year: N.A) Shri Krishna Foundation, Opp. Abay Ghat, Gandhi Ashram, Ahmedabad-380027. [PAN :AAGTS6546 P] Vs. The Commissioner of Income Tax(Exemption), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Vivek Chavda, AR Respondent by: Shri RP Rastogi, CIT. DR Date of Hearing 08.07.2025 Date of Pronouncement 15.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned These two appeals have been filed by the assessee against the separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, vide order dated 04.12.2024 & 16.12.2024. ITA No.478/Ahd/2025 2. The assessee has raised the following grounds of appeals: 1.1 The learned CIT(Exemption) erred in law and on facts in rejecting the appellant's application for registration under section 12AB of the Income Tax Act, 1961 by order dtd:04.12.2024. ITA Nos. 478-479/Ahd/2025 Krishna Foundation Vs. CIT Asst. Year : N.A - 2– 1.2 The learned CIT (Exemption) erred in cancelling the provisional registration granted to the appellant under section 12AB(1) (c) without providing sufficient and specific opportunity to the appellant to present its case. Therefore, the appellant shall be granted opportunity to produce additional evidences. 2.1 The learned CIT (Exemption) erred in treating non-response to email notices as non-compliance when: a. The trustees had already demonstrated their compliance by submitting all required documents with Form 10AB b. The inability to respond to notices was due to practical difficulties in accessing email, not willful non-compliance. c. The trust has consistently maintained transparency in its operations. The learned CIT(Exemption) erred in rejecting the application solely on the ground of non-submission of a note on activities and other unspecified details, without: a. Considering the documents already submitted with the Form 10AB application b. Examining the objects and activities mentioned in the trust deed c. Verifying the financial statements and other documents on record 2.3 The learned CIT(Exemption) failed to appreciate that mere non- submission of additional information within the short time provided does not justify rejection of registration under section 12AB, especially when provisional registration was already granted earlier. 3.1 Without prejudice to the above, the learned CIT(Exemption) erred in directing computation of tax liability under section 115TD without appreciating that said provision is not applicable in case of rejection of application for registration. 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 ITA Nos. 478-479/Ahd/2025 Krishna Foundation Vs. CIT Asst. Year : N.A - 3– Act, 1961, since the assessee-trust failed to submit any details/explanation and genuineness of the activities of the Trust. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. 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 that the assessee-trust has neither filed any submission nor sought any adjournment. 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. ITA No.479/Ahd/2025 6. Since we have remanded the issue to the Ld.CIT(E) in ITA No.478/Ahd/2025 against rejecting of application u/s.12A(1)(ac)(iii) of the Act, we also set-aside the issue for approval of registration u/s.80G(5)(iii) of the Act in ITA No.479/Ahd/2025 for fresh consideration. ITA Nos. 478-479/Ahd/2025 Krishna Foundation Vs. CIT Asst. Year : N.A - 4– 7. In the result, both the appeals of the assessee are allowed for statistical purposes. The order is pronounced in the open Court on 15.07.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 15 .07.2025 MV 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 "