TEAM SAHAY TRUST VADODARA,VADODARA V. CIT (EXEMPTION), AHMEDABAD

ITA 401/AHD/2025

AI Insights

The case involves Team Sahay Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, who had rejected the trust's application for registration under Section 12AB. The rejection was primarily due to the non-submission of accounts for the financial year 2021-22. The trust argued that the rejection was unjustified as it had substantially complied with the requirements and any minor deficiencies could have been rectified. The tribunal found merit in the trust's argument that the rejection without further opportunity to explain or submit pending documents was against the principles of natural justice. Consequently, the matter was remanded back to the CIT(E) for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793570 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2023-2024
• Appeal Filed On: 20-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: SARJU MEHTA
• Keywords: Principle of natural justice; Non compliance; Procedural lapse

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.401/Ahd/2025 (Assessment Year: 2023-24) Team Sahay Trust Vadodara, D-77, Nutan Saurabh Soc., Near Vikay Nagar, Harni Road, Vadodaara-390006. [PAN :AAETT0606 M] Vs. The Commissioner of Income Tax, (Exemption, Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri Sarju Mehta, AR Respondent by: Shri Alpesh Parmar, CIT. DR Date of Hearing 23.09.2025 Date of Pronouncement 25.09.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, vide order dated 19.03.2023 relevant to the Assessment Year 2023-2024. 2. The assessee has raised the following grounds of appeal: 1 Unjustified Rejection: The rejection of 12AB Registration was solely due to the non-submission of accounts for FY 2021-22 Printed from counselvise.com ITA No. 401/Ahd/2025 Asst. Year : 2023-24 - 2– 2 Compliance with Section 12AB: The trust meets all requirements under section 12AB, and the delay in submission was due to procedural lapses, not non compliances 3. Natural Justice: The rejection is unjustified as the appellant trust had substantially complied with the requirement and minor deficiencies could have been rectified. The appellant submits that the rejection without further opportunity to explain or submit pending documents was against the principal of natural justice. 4 Condonation of delay: The appellant respectfully seeks condonation for the delay in filing this appeal due to inadvertent procedural delays and lack of proper guidance 3. The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB under the provisions of the Act. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961, on the ground that the assessee-trust failed to furnish the requisite details/explanation and to establish the genuineness of its activities. 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 failed to furnish substantial documents. 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 Printed from counselvise.com ITA No. 401/Ahd/2025 Asst. Year : 2023-24 - 3– 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. 6. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 25.09.2025. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 25.09.2025 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 Printed from counselvise.com "