WOMEN EMPOWERMENT FOUNDATION,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2208/AHD/2024

AI Insights

The case involves the Women Empowerment Foundation, a charitable trust, which appealed against the decisions of the CIT (Exemption), Ahmedabad. The CIT had rejected the trust's applications for re-registration under section 12A(1)(ac)(iii) and for approval under section 80G(5) of the Income Tax Act, 1961, citing non-compliance with document requests. The tribunal found that the trust's failure to comply was due to unavoidable circumstances, including the serious illness and death of a managing trustee's father, and thus warranted a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29660 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2025
• 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: PUSHPENDRA SINGH CHAUDHARY
• Assessee Lawyers: ADJOURNMENT APPLICATION FILED
• Keywords: Set aside; Opportunity of being heard; Reasonable cause; Competent authority
• Section: 12A; 80G

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “ए“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD \u0015ी टी.आर. से\u0019\u001aल क ुमार, \u0011ाियक सद एवं \u0015ी मकरंद वसंत महादेवकर, लेखा सद क े सम!। ] ] BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA Nos.2208/Ahd/2024 & 2209/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : -NA- Women Empowerment Foundation 7, Surohi Park-2 Opp. Rushikesh Garden Nava Nikol Khodiyarnagar S.O., Ahmedabad – 382 350 बनाम/ v/s. The CIT (Exemption) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AAATW 4894 N (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Adjournment Application filed Revenue by : Shri Pushpendra Singh Chaudhary, CIT सुनवाई की तारीख/Date of Hearing : 01/04/2025 घोषणा की तारीख /Date of Pronouncement: 02/04/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: Both these are two appeals filed by the assessee-trust against the separate orders passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad: • Order dated 21.11.2024, passed under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) rejecting the application for registration in Form 10AB; and • Order dated 25.11.2024, passed under section 80G(5) of the Act, rejecting the application for approval. ITA Nos.2208 & 2209/Ahd/2024 Women Empowerment Foundation vs. The CIT (Exemption) 2 2. Since the issues involved are interlinked and arise from a common set of facts, both appeals are disposed of by this common order. Facts of the case: 3. The assessee is a charitable-trust duly registered under the Bombay Public Trust Act, 1950. It filed applications in Form No. 10AB on 18.06.2024 seeking (i) re-registration under section 12A(1)(ac)(iii) of the Act and (ii) approval under section 80G(5) of the Act. 4. The Ld. CIT(Exemption), Ahmedabad rejected the application under section 12A of the Act on 21.11.2024 on the ground of non-compliance with notices issued for furnishing supporting documents. Thereafter, the application under section 80G of the Act was also rejected on 25.11.2024 solely on the ground that the assessee was not registered under section 12A of the Act, treating it as a precondition. 5. Aggrieved by the orders of CIT(Exemption), the assessee is in appeal before us with following grounds of appeal: ITA No. 2208/Ahd/2024 1. In law and in the facts and circumstances of the case of appellant, the order passed by the Ld. CIT (Exemption), Ahmedabad rejecting application for registration of the trust u/s 12AB of the Income Tax Act, 1961 is void ab initio 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. 12AB of the Income Tax Act, 1961. 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. ITA Nos.2208 & 2209/Ahd/2024 Women Empowerment Foundation vs. The CIT (Exemption) 3 ITA No. 2209/Ahd/2024 1. In law and in the facts and circumstances of the case of the appellant, the order passed by the Ld. CIT (Exemption), Ahmedabad rejecting the application for approval under clause (iii) of the first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 is void ab initio being bad in law. 2. In law and on the facts and in the circumstances of the case of the appellant, the Ld. CIT (Exemption), Ahmedabad has erred in rejecting the application for approval under clause (iii) of the first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961. 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. 6. The assessee, by way of statement of facts, submitted that due to unavoidable and exceptional circumstances, including the serious illness and subsequent demise of the father of one of the managing trustees, the assessee was unable to comply with the notices issued in connection with the applications. It was submitted that the non-compliance was neither deliberate nor intentional. 7. During the course of hearing, the Ld.Departmental Representative fairly submitted that he has no serious objection if the matter is restored to the file of the Ld. CIT(E) for decision afresh after granting reasonable opportunity of being heard to the assessee. 8. We have heard the rival submissions. In the interest of justice and fair play and having regard to the facts and circumstances of the case, we are of the view that the assessee deserves one more opportunity to present its case before the CIT(Exemption). The failure to respond to notices was explained with reasonable cause, and a fresh decision by the competent authority after affording proper opportunity would meet the ends of justice. ITA Nos.2208 & 2209/Ahd/2024 Women Empowerment Foundation vs. The CIT (Exemption) 4 8.1. Accordingly, the impugned orders passed under section 12A(1)(ac)(iii) and under section 80G(5) of the Act are hereby set aside. The matters are restored to the file of the CIT(Exemption), Ahmedabad, who shall pass fresh orders after affording adequate opportunity of being heard and in accordance with law. 8.2. The assessee is also directed to comply with all notices issued by the CIT(Exemption) and not seek unnecessary adjournments. 9. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the Open Court on 2nd April, 2025 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 02/04/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \"ितिलिप अ#ेिषत/Copy of the Order forwarded to : 1. अपीलाथ$ / The Appellant 2. \"%थ$ / The Respondent. 3. संबंिधत आयकर आयु& / Concerned CIT 4. आयकर आयु& ) अपील ( / The CIT(E), Ahmedabad 5. िवभागीय \"ितिनिध , अिधकरण अपीलीय आयकर , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स%ािपत \"ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad "