SHRI NAVDURGESHWARI MATAJI DEVSTHAN TRUST,VADNAGAR, MEHSANA V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 421/AHD/2025

AI Insights

The case involves the Shri Navdurgeshwari Mataji Devsthan Trust appealing against the order of the CIT(Exemption), Ahmedabad, which rejected their application for registration under section 12AB of the Income Tax Act, 1961, and cancelled their provisional registration. The Trust argued that the CIT(Exemption) did not consider the genuine difficulties faced by its senior citizen trustees in responding to notices and did not appreciate the age-related limitations in handling complex documentation. The Tribunal found that the CIT(Exemption) had not provided adequate opportunity for the Trust to present its case, leading to the decision to remand the matter for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315671 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: VIVEK CHAVDA
• Keywords: Set aside; Principle of natural justice
• Section: 12A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Shri Navdurgeshwari Mataji Devsthan Trust, Ganji Sheri Gaskol Darvaja, Vadnagar, SO Vadnagar, Mehsana PAN: ABATS1053Q (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee by: Shri Vivek Chavda, A.R. Revenue by: Shri Alpesh Parmar, CIT-D.R. Date of hearing : 07-05-2025 Date of pronouncement : 13-05-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 28-12- 2024 passed by CIT(Exemption), Ahmedabad for assessment year N.A.. 2. The grounds of appeal are as under:- “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 dated 28.12.2024. 1.2 The learned CIT (Exemption) erred in cancelling the provisional registration granted to the appellant without: ITA No. 421/Ahd/2025 Assessment Year NA I.T.A No. 421/Ahd/2025 Shri Navdurgeshwari Mataji Devsthan Trust , A.Y. NA 2 (a) Considering the genuine difficulties faced by senior citizen trustees in tracking and responding to notices (b) Appreciating the age-related limitations of the trustees in handling complex documentation (c) Providing adequate time and assistance considering the special circumstances of the case 1.3 The learned CIT(Exemption) erred in law and on facts in rejecting the appellant's application without considering the fact that the appellant had already furnished the copies of audit reports for FY 2022-23 & 2023-24 during the course of proceedings. 1.4 The learned CIT(Exemption) erred in mechanically rejecting the application without: (a) Taking a humanitarian view of the challenges faced by elderly trustees (b) Examining the trust deed and other documents already on record (c) Verifying the religious and charitable nature of activities through existing documentation 1.5 The learned CIT(Exemption) failed to appreciate that: (a) The trust is managed by senior citizens who require additional time and consideration (b) The trust already had provisional registration demonstrating its bona fides (c) Non-submission of certain documents was due to practical difficulties and not willful non-compliance 1.6 The learned CIT(Exemption) erred in directing computation of tax liability under section 115TD without considering the peculiar facts of the case It is therefore prayed that the Hon'ble Tribunal may be pleased to: (a) Set aside the impugned order dated 28.12.2024 (b) Direct the CIT(Exemption) to grant registration under section 12A after proper examination, keeping in view the special circumstances of the case (c) Stay the application of section 115TD until the disposal of this appeal (d) Grant any other relief deemed fit in the interests of justice” 3. The assessee trust was granted provisional registration u/s. 12(1)(ac)(vi) of the Income Tax Act, 1961 on 05-04-2002 I.T.A No. 421/Ahd/2025 Shri Navdurgeshwari Mataji Devsthan Trust , A.Y. NA 3 valid from assessment year 2022-23 to assessment year 2024- 15. The assessee trust filed an application in Form 10AB for registration under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961 along with prescribed documents under Rule 17A(2). The CIT(E) issued notice dated 05-09-2024 and 12-12-2024 requesting certain details/documents. The assessee trustees comprises the senior citizen trustee and therefore faced genuine difficulties in tracting and responding to the notices as mentioned by the ld. A.R. during the hearing. The assessee trust submitted partial compliance/reply dated 16-10-2024 to the CIT(E). The CIT(E) passed order dated 28-12-2024 rejecting the assessee trust application and cancelled provisional registration. 4. Being aggrieved by the order of the CIT(E), the assessee filed the present appeal before the Tribunal. 5. The ld. A.R. submitted that the CIT(E) has not given the proper opportunity to the assessee trust to submit the details before the CIT(E). Therefore, the ld. A.R. requested that matter may be remanded back to the file of CIT(E) for proper adjudication. 6. The ld. D.R. relied upon the order of the CIT(E) 7. We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the CIT(E) has not given opportunity to the assessee trust for presenting details. Therefore, it will be appropriate to remand back this matter to the file of CIT(E) for proper verification of the details filed by the assessee trust and I.T.A No. 421/Ahd/2025 Shri Navdurgeshwari Mataji Devsthan Trust , A.Y. NA 4 adjudicate the same as per Income Tax provisions. The assessee be given opportunity of hearing by following principles of natural justice. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 13-05-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 13/05/2025 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 "