VITHALDAS TULSIDAS CHARITABLE TRUST,NADIAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1769/AHD/2024

AI Insights

The case involves the Vithaldas Tulsidas Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied the trust approval under section 80G(5)(iii) of the Income Tax Act, 1961. The denial was based on the grounds that the trust did not furnish necessary documents to prove the genuineness of its activities and compliance with the conditions laid down under section 80G(5). The trust contested this decision, arguing that it had indeed submitted all required documents in response to the CIT(E)'s notice. The Tribunal found that the CIT(E) had erred in rejecting the application on the grounds stated, as the trust had complied within the prescribed timeline.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35044 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATHVI RAJ MEENA
• Assessee Lawyers: DHRUNAL BHATT
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Charitable institution

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri Siddhartha Nautiyal, Judicial Member And Shri Narendra Prasad Sinha , Accountant Member Vithaldas Tulsidas Charitable Trust, Dr. Virendra Desai Marg, Petlad Road, Nadiad 387001 PAN: AAATV1113F (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee by: Shri Dhrunal Bhatt, A.R. Revenue by: Shri Prathvi Raj Meena, CIT-D.R. Date of hearing : 23-12-2024 Date of pronouncement : 06-01-2025 आदेश/ORDER PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER This appeal is filed by the assessee against the denial of approval u/s. 80G(5)(iii) of the Income Tax, 1961 vide order dated 03/09/2024 passed by Commissioner of Income Tax (Exemption) [in short CIT(E)], Ahmedabad. 2. The following grounds have been taken in this appeal: - “1. In law and in the facts and circumstances of the appellant's case, the order passed by the Ld. CIT (Exemption), Ahmedabad rejecting ITA No. 1769/Ahd/2024 Assessment Year : NA I.T.A No. 1769/Ahd/2024 A.Y. NA Vithaldas Tulsidas Charitable Trust vs. CIT (Exemption) 2 application for registration of the trust u/s. 80G(5) of the Income Tax Act, 1961 is void ab initio and in violation of principles of natural justice hence being bad in law. 2. In law and on the facts and in the circumstances of the case of appellant, the ld. CIT (Exemption), Ahmedabad has erred in rejecting application for registration of the trust u/s. 80G(5) of the Income Tax Act, 1961 on the basis of incorrect reasons/observations. 2.1 In law and on the facts and in the circumstances of the case of appellant, the ld. CIT (Exemption), Ahmedabad has erred in not granting registration u/s 80G(5) of the Act to the appellant on the basis that the appellant has not provided the requisite details even when the appellant has duly filed all the necessary replies in response to notice issued by ld CIT(E). 3. The appellant craves leave to add, alter or amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal.” 3. Shri Dhrunal Bhatt, the ld. counsel for the assessee submitted that the ld. CIT(E) had rejected the application filed by the assessee for approval u/s. 80G(5)(iii) of the Act for the reason that the documentary evidences in respect of genuineness of the activities of the trust and the other documents in support of fulfillment of conditions laid down u/s. 80G(5) of the Act, were not furnished. The ld. A.R. explained that in response to notice dated 06/07/2024 issued by the ld. CIT(E), the assessee had submitted a reply dated 21/08/2024 clarifying the issues on which queries were raised as well as also enclosing the documents as required. The ld. AR clarified that though the date of compliance to the said I.T.A No. 1769/Ahd/2024 A.Y. NA Vithaldas Tulsidas Charitable Trust vs. CIT (Exemption) 3 notice was 5th August 2024 the assessee had filed its reply manually in the office of ld. CIT(E) on 21st August 2024, which was before the date of passing of order by the ld. CIT(E). Under the circumstances, the ld. CIT(E) was not correct in rejecting the application on the ground that the assessee has not furnished the documents as required. He, therefore, requested that the matter may be set aside to the ld. CIT(E) with a direction to reexamine the matter after allowing an opportunity of being heard to the assessee. 4. Per contra, Shri A.P. Singh, the ld. CIT-D.R. had no objection in setting aside the matter back to the file of CIT(E) for granting approval u/s. 80G(5) of the Act after due verification of the documents. 5. We have considered the rival submissions. It is found that in response to notice dated 06/07/2024 issued by ld. CIT(E), the assessee had filed a letter dated 21-08-2024 manually, which was duly acknowledged in the office of CIT(E). Further, a response was also made online informing that the details as required were filed manually on 21-08-2024. In fact, another notice was issued by ld. CIT(E) on 10/08/2024 as per which the date of compliance was 22nd August 2024. Thus, the response filed by the assessee was well within the timeline prescribed by the ld. CIT(E). A copy of these correspondences has been brought on record by the assessee in the paper-book filed. Under the circumstances, the finding of the ld. CIT(E) that the assessee did not comply to the notices and that the documents/clarifications were not filed, is not found correct. I.T.A No. 1769/Ahd/2024 A.Y. NA Vithaldas Tulsidas Charitable Trust vs. CIT (Exemption) 4 We, therefore, deem it proper to set aside the matter to the file of ld. CIT(E) with a direction to grant proper opportunity of hearing to the assessee and thereafter pass order in the matter, in accordance with law. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. This order is pronounced in the Open Court on 06 /01/2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 06/01/2025 True Copy आदेश कȧ ĤǓतͧलͪप अĒेͪषत / 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 अपीलȣय अͬधकरण, अहमदाबाद "