VITRAG ARADHANA TRUST,AHMEDABAD V. COMMISSIONER OF INCOME TAX(EXEMPTION)-AHMEDABAD, AHMEDABAD

ITA 157/AHD/2025

AI Insights

The case involves the Vitrag Aradhana Trust appealing against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied the trust's registration under Section 12A and approval under section 80G(5) of the Income Tax Act, 1961. The trust argued that it did not receive the notices requiring additional details and documents due to their unfamiliarity with technical procedures and the e-filing portal. The Tribunal found the trust's explanations insufficient but imposed a cost of Rs. 5,000 on the trust, directing that upon payment, a new opportunity for hearing be granted.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126015 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• 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: ADJOURNMENT APPLICATION FILED
• Assessee Lawyers: ADJOURNMENT APPLICATION FILED
• Keywords: Set aside; Opportunity of being heard
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 157 & 158/Ahd/2025 (Ǔनधा[रण वष[ / Assessment Year : NA) Vitrag Aradhana Trust Arihant, Opp US Pizza, Bh. Libarty Bus Stop, Navrangpura Ahmedabad, Gujarat - 380009 बनाम/ Vs. Commissioner of Income Tax (Exemption) Ahmedabad ̾थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAATV1545R (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Adjournment Application filed. Ĥ×यथȸ कȧ ओर से/Respondent by : Adjournment Application filed. Date of Hearing 23/04/2025 Date of Pronouncement 24/04/2025 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: These two appeals are filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, (in short ‘the CIT(E)’), dated 13.11.2024 & 15.11.2024 in respect of rejection of registration under Section 12A of the Income Tax Act, 1961 (in short ‘the Act’) and rejection of approval u/s.80G(5) of the Act, respectively. 2. The brief facts of the case are that the assessee had filed an application in Form No.10AB on 29.06.2024 for registration of the trust u/s.12A(1)(ac)(iii) of the Act. In response thereto, the Ld. CIT(E) had called for certain details/documents vide notices ITA Nos. 157 & 158/Ahd/2025 [Vitrag Aradhana Trust vs. CIT(E)] - 2 – dated 27.08.2024 and 16.10.2024, which was not complied by the assessee. The assessee neither filed any submissions nor sought for any adjournments, therefore Ld. CIT(E) denied registration u/s. 12A of the Act, as he was not satisfied about genuineness of the activities of the trust and also about whether the activities of the trust were in consonance with the objects of the trust. The Ld. CIT(E) vide the impugned order rejected the application for registration u/s.12A of the Act and the provisional registration granted earlier was also cancelled. Further, in the absence of registration u/s.12A of the Act, which is a pre-requisite for grant of approval u/s. 80G of the Act, the application for approval u/s 82G(5) was also rejected. 3. The assessee has submitted that the notices requiring additional details and documents were neither communicated to the Appellant Trust via email nor made known through e-filing portal. At the same time, it is submitted that the trustees, being unaware of technical procedures and not well-versed with the e- filing portal, inadvertently failed to respond to the notices. According to the assessee, the application was rejected without allowing sufficient opportunity of being heard. The assessee has further submitted that the objectives as well as activities carried on by the assessee trust were for the benefit of general public and were charitable in nature. Therefore, a request was made that the matter may be set aside to the file of the Ld. CIT(E) with a direction to allow another opportunity to the assessee, so that the matter can be clarified before him. 4. We have considered the submission of the assessee. The assessee Trust has submitted that the it is prepared to file all required documents before Ld. CIT(E) for registration and, therefore, requested to set ITA Nos. 157 & 158/Ahd/2025 [Vitrag Aradhana Trust vs. CIT(E)] - 3 – aside the matter back to the file of Ld. CIT(E) for granting registration. The explanation of the assessee that communication was not received on the email can’t be accepted as no evidence was brought on record in this respect. Further, it has been admitted that the trustees were unaware of technical procedures and not well-versed with the e-filing portal and, therefore, had inadvertently failed to respond to the notices. We don’t find it as a reasonable explanation for non-compliance before the CIT(E). When the assessee had e-filed its application, it can’t take a plea that it was unaware of the procedure. Therefore, we deem it fit to impose a cost of Rs. 5,000/- on the assessee, payable to the Income Tax Department within two weeks from the date of receipt of copy of this order. On production of receipt for payment of the cost, Ld. CIT(E) is directed to give one more opportunity of hearing to the assessee for registration in accordance with the provisions of law. The assessee is also directed to make compliance before the Ld. CIT(E) and not to seek unnecessary adjournment. The matter regarding approval u/s.80G(5) of the Act is also required to be set aside which has to be re-adjudicated after first deciding the matter of registration u/s.12A of the Act. 5. In the result, both the appeals filed by the assessee are allowed for statistical purposes. This Order pronounced on 24/04/2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 24/04/2025 S. K. SINHA True Copy आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंͬधत आयकर आयुÈत / Concerned CIT ITA Nos. 157 & 158/Ahd/2025 [Vitrag Aradhana Trust vs. CIT(E)] - 4 – 4. आयकर आयुÈत(अपील) / The CIT(A)- 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलȣय अͬधकरण, अहमदाबाद / ITAT, Ahmedabad "