SAHYOG KHADIGRAM MANDAL,VERAVAL vs. INCOME TAX OFFICER WARD -5, VERAVAL

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ITA 904/RJT/2026Status: DisposedITAT Rajkot12 August 2026AY 2018-193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. It noted the assessee's failure to produce supporting documents and, in the interest of justice, restored the issue to the Assessing Officer for fresh examination after affording the assessee a reasonable opportunity of being heard.

What were the facts?

The assessee, a public charitable trust, claimed exemption under Section 11. However, it failed to furnish requisite documents like registration under Section 12AA and other supporting evidence to the lower authorities. The Assessing Officer treated the entire income as taxable, and the CIT(A) dismissed the appeal due to non-compliance.

What were the issues?

Whether the assessee is entitled to exemption under Section 11 without furnishing the mandatory supporting documents, and whether the lower authorities erred in dismissing the appeal due to non-compliance.

Which sections of the Income-tax Act were involved?

Section 11,Section 12AA,Section 143(2),Section 142(1),Section 144,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri R. D. Lalchandani Ld. AR
For Respondent: Shri Shishir Kumar, Ld. Sr. DR
Hearing: 30/07/2026Pronounced: 12/08/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 904/RJT/2026 [ �नधा�रण वष�/Assessment Year: 2018-19 ] Sahyog Khadigram Mandal Income Tax Officer Ward -5, Ashiyana, Opp.Panchayat, Veraval-362265, Gujarat Vs. Village-Dari Dsit.Junagadh, Veraval- 362266, Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AADTS2463G (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri R. D. Lalchandani Ld. AR Respondent by : Shri Shishir Kumar, Ld. Sr. DR Date of Hearing : 30/07/2026 Date of Pronouncement : 12/08/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2018-19, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 10.07.2025, which in turn arises out of an order passed by assessing officer u/s. 144 of the Act, dated 20.04.2021.

2.

Brief facts of the case are that the assessee is a public charitable trust registered under the applicable Public Charitable Trust Act and is entitled to exemption under section 11 of the Income-tax Act. For the year under consideration, the trust filed its return of income on 29.03.2019, claiming exemption under section

ITA No. 904/RJT/2026 Sahyog Khadigram Mandal 11 of the Act, along with Form No. 10B which was filed belatedly. It was submitted that notice under section 143(2) of the Act was issued on 22.09.2019, followed by notices under section 142(1) of the Act dated 22.10.2020, 19.11.2020 and 17.12.2020, calling for various details, including the audit report, computation of income and details of major expenses incurred in furtherance of the objects of the trust. According to the assessee, the requisite details could not be furnished as the Managing Trustee, Shri Ishabhai Jikani, was unwell and was unable to attend to the proceedings. Consequently, the National e-Assessment Centre completed the assessment by treating the entire income of the trust as taxable, without allowing the benefit of exemption under section 11 of the Act and without allowing revenue expenditure amounting to Rs.1,89,59,792/-.

3.

The above assessment order was challenged by the assessee before the Ld.CIT(A). However, despite notices being issued, the assessee failed to comply on three consecutive dates of hearing and did not furnish the proper requisite submissions or supporting documents in order to substantiate its claim. The Ld.CIT(A) also noted that the assessee had failed to produce a copy of the registration granted under section 12AA of the Act and had not furnished proper replies to the notices issued. Accordingly, the appeal was dismissed and the assessment order was sustained.

4.

Still aggrieved by the order of the Ld. CIT(A) assessee is in appeal before this Tribunal.

5.

At the time of hearing before us, the Ld. AR submitted that there was a delay of 255 days in filing the appeal before the Tribunal and, accordingly, filed an application seeking condonation of delay. Having considered the submissions of the assessee and the reasons stated in the condonation petition, we are satisfied that the assessee was prevented by reasonable cause from filing the appeal within the

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ITA No. 904/RJT/2026 Sahyog Khadigram Mandal prescribed period. Accordingly, the delay of 255 days is hereby condoned. The Ld. AR further submitted that, even during the appellate proceedings, the assessee could not produce the requisite substantive documents in support of its claim.

6.

On the other hand, the Ld. DR supported the orders of the authorities below.

7.

We have heard the rival submissions and carefully perused the material available on record. We find that the assessee has claimed exemption under section 11 of the Act; however, the requisite supporting documents, including the registration under section 12AA of the Act and other relevant documents necessary to substantiate its claim, were not furnished before the lower authorities. In the interest of justice and fairness, we consider it appropriate to restore the issue to the file of the Assessing Officer for fresh examination. The Assessing Officer shall examine the assessee’s claim in accordance with law after considering all relevant documents and after affording the assessee a reasonable opportunity of being heard.

8.

Accordingly, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on this 12th day of August, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 12/08/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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