SIDHPUR EDUCATION AND WEL FARE TRUST,SIDHPUR PATAN V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 253/AHD/2025

AI Insights

The case involves Sidhpur Education and Welfare Trust, which appealed against the orders of the Commissioner of Income-Tax (Exemption), Ahmedabad, rejecting their applications for final registration under section 12A and final approval under section 80G of the Income Tax Act, 1961. The CIT(E) had rejected these applications on the grounds that the trust failed to provide sufficient documentary evidence to demonstrate the genuineness of its activities and that these activities were in consonance with the trust's objectives. The Tribunal found that the CIT(E) had not adequately considered the documents already submitted with Form No.10AB and did not verify the financial statements and other documents on record. The Tribunal decided to set aside the CIT(E)'s orders and remand the matter for a fresh decision, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652961 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: IVEK CHAVDA
• Keywords: Set aside
• Section: 12A; 80G

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘C’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD ] ] BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.253 and 254 /Ahd/2025 Assessment Year : - Sidhpur Education and Welfare Trust Saifee High School Road Sidhpur, Patan. PAN : AACTS 3327 G Vs The CIT(Exemption) Vejalpur Ahmedabad. (Applicant) (Responent) Assessee by : Shri ivek Chavda, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई क तारीख/Date of Hearing : 05/06/2025 घोषणा क तारीख /Date of Pronouncement: 17/06/2025 आदेश आदेश आदेश आदेश/O R D E R Per Sanjay Garg, Judicial Member The captioned appeals have been preferred by the assessee against separate orders passed by the Ld.Commissioner of Income- Tax (Exemption), Ahmedabad [hereinafter referred to as “ld.CIT(E)]. 2. ITA No.253/Ahd/2025 is against the order of the ld.CIT(E) dated 13.11.2024 rejecting the application of the assessee for final/regular registration under section 12A of the Income Tax Act, 1961 (for short “the Act”) whereas the ITAT No.254/Ahd/2025 is against the order of the ld.CIT(E) dated 15.11.2024 rejecting the application of the assessee for final/regular approval under section 80G of the Act. ITA No.253 & 254/Ahd/2025 2 3. At the outset, the ld.counsel for the assessee submitted that the reasons for rejection of assessee’s applications for registration/approval under section 12A/80G of the Act were on the ground that the assessee had failed to file documentary evidences to demonstrate genuineness of the activities of the trust/institution and that the activities of the trust are in consonance with the object of the trust. It has been contended that the notices issued by the ld.CIT(E) on 12.8.2024 and 8.10.2024 could not be accessed as the in-charge trustee being a senior citizen, has very limited familiarity and experience with digital communication, and has practical difficulties in regularly accessing and monitoring email accounts. That the assessee became aware of the above stated notice by the ld.CIT(E) only after considerable delay, which was attributable to the reasons beyond the control of the assessee. The ld.counsel for the assessee submitted that the Commissioner has rejected the application of the assessee solely on the ground of non-submission of a note on activities and other details, without considering the fact that the relevant documents were already submitted with the Form No.10AB. Further, that the ld.CIT(E) did not examine the objects and activities of the trust and did not verify the financial statements and other documents which were already on record. It has, therefore, been contended that the ex parte order of the ld.CIT(E) in rejecting the applications of the assessee-trust is not justified, especially when the provisional registration/approval was already granted. 4. The ld.counsel for the assessee submitted that the assessee may be given an opportunity to present its case, since the assessee has a fair case on merits, as the assessee has already been granted provisional approval/registration, and there was no reason for non- grant of regular/approval/registration. ITA No.253 & 254/Ahd/2025 3 5. The ld.DR, on the other hand, has relied on the order of the ld.CIT(E). 6. Considering the above submissions of the assessee, in our view, interests of justice will be well served, if the assessee is given an opportunity to present its case before the ld.CIT(E). Accordingly, we set aside the impugned exparte orders of the ld.CIT(E) and restore the matter to the file of the ld.CIT(E) for decision afresh on the applications of the assessee, after providing due opportunity of hearing to the assessee. The assessee is also directed to actively participate in the proceedings before the ld.CIT(E) and furnish the necessary documents/evidences as may be required to substantiate its case during the proceedings. 7. In the result, both the appeals of the assessee stand are treated as allowed for statistical purposes. Order pronounced on 17th June, 2025. Sd/- Sd/- (Annapurna Gupta) Accountant Member (Sanjay Garg) Judicial Member Ahmedabad,dated 17/06/2025 vk* "