SHRUT RATNAKAR,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2176/AHD/2024

AI Insights

The case involves an appeal by Shrut Ratnakar against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected the application for registration under section 80G(5)(iv) of the Income Tax Act. The initial rejection was based on the grounds that the trust's objectives, as per the trust deed, included religious activities, which do not qualify as exclusively charitable under the specified section. The assessee contested the rejection, arguing procedural improprieties and substantive errors in the application of the law. The tribunal found merit in the assessee's request for a fresh consideration of the application, emphasizing the need to evaluate the case with all relevant submissions and explanations from the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474047 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.N DSOUZA
• Assessee Lawyers: PREYASHI TATED
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.TA. No.2176/Ahd/2024 (Assessment Year: NA) Shrut Ratnakar, 803, Sarap, Nr. Navjivan Press, Ahmedabad-380014. Vs. The Commissioner of Income Tax(Exemption) Ahmedabad. [PAN No.AACTS2576B] (Appellant) .. (Respondent) Appellant by : Smt Preyashi Tated, AR Respondent by: Shri R.N Dsouza, CIT.DR Date of Hearing 13.03.2025 Date of Pronouncement 18.03.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad vide order dated 17.11.2024. 2. The assessee has raised the following grounds of appeal 1. The order passed by the Ld.CIT(E) rejecting the Application filed U/s.80G(5)(iv) of the act in against law, equity & justice. 2. The CIT(Exemption) has erred in law and on facts by rejecting the application 80G as show cause notice was dated 07.11.2024 ITA No. 2176/Ahd/2024 Asst.Year NA - 2– and respond it on or before 14.11.2014 while passed order of rejection on 07.11.2014 3. The Ld.CIT€ has erred in law and facts in rejecting the application filed u/s.80G(5)(iv) of the act on ground of non- compliance of show cause notice. 4. The appellant Craves liberty to add, amends, alter or modify all or any grounds of appeal before final appeal. 3. At the outset, we find that assessee-trust was asked to submit certain details /information /clarification regarding application for registration u/s.80G (5)(iv) of the Act. The Ld.CIT(E) on perusal of the trust deed observed that the object mentioned at serial no.1,4,5,6 & 7 are religious in nature and not exclusively charitable in nature as per section 80G(5) of the Act. Further, Ld.CIT(A) issued show-cause notice to the assessee to explain the reason for rejection of application. In pursuance to the same, the assessee failed to comply to the show notice and the Ld.CIT(E) dismissed the appeal of the assessee on the basis of material available on record. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. 5. At the outset, the Ld. Counsel for the assessee submitted that the Ld.CIT(E) has rejected the application filed U/s.80G(5)(iv) of the Act on ground of non-compliance of show cause notice. Therefore, prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Having considered ITA No. 2176/Ahd/2024 Asst.Year NA - 3– 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 explanation/submissions filed by the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 18.03.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 18.03.2025 Manish, Sr. PS TRUE COPY आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ(अपील) / The CIT(A)- 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडᭅ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "