MORBI CERAMIC MANUFACTURERS ASSOCIATION, MORBI,MORBI vs. THE CIT (E), AHMEDABAD, AHMEDABAD

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ITA 520/RJT/2025Status: DisposedITAT Rajkot07 July 2026AY 2024-253 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee deserved another opportunity to present its case and evidence to the CIT(E). The impugned order was set aside, and the matter was restored for fresh adjudication.

What were the facts?

The assessee, Morbi Ceramic Manufacturers Association, applied for registration under Section 12AB of the Income-tax Act. The CIT(E) rejected the application, finding the trust's objects were not for general public benefit but for a specific group.

What were the issues?

Whether the objects of the trust were for the benefit of the general public, and if the assessee was given adequate opportunity to prove its charitable nature.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(vi)(B)

AI-generated summary — verify with the full judgment below

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. 520/RJT/2025 [ �नधा�रण वष�/Assessment Year: 2024-25 ] Morbi Ceramic Manufacturers The CIT (Exemption) Ahmedabad. Association Aayakar Bhawan (Vejalpur), Vs. Real Plaza, 1st Floor, Sachin Tower, 100 Foot Road, Shop No. 5, Lalpar, Morbi, Rajkot. Anandnagar - Prahaladnagar Road, Gujarat 363642 Ahmedabad Gujarat 380015 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAOCM9681L (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri D. M. Rindani, Ld. AR Respondent by : Shri Ravinder Sindhu, Ld. CIT. DR

Date of Hearing : 30/06/2026 Date of Pronouncement : 07/07/2026

:: ORDER :: Per, Bench: This appeal has been preferred by the assessee against the order dated 30.06.2025 passed by the Ld. Commissioner of Income-tax (Exemption) [CIT(E)], whereby the assessee’s application for registration under Section 12AB read with Section 12A(1)(ac)(vi)(B) of the Income-tax Act, 1961 was rejected.

2.

Briefly stated, the facts of the case are that the assessee is a trust and had filed an application seeking registration under Section 12AB of the Act. During the course of proceedings, the Ld. CIT(E) called upon the assessee to furnish certain details,

ITA No. 520/RJT/2025 Morbi Ceramic Manufacturers Association particularly with regard to the objects of the trust, the proposed expenditure outside India, and whether the activities of the trust were confined to the benefit of the members of the Morbi Ceramic Manufacturers Association. After considering the material available on record and the replies furnished by the assessee, the Ld. CIT(E) came to the conclusion that the objects of the trust were not for the benefit of the general public but were confined to a particular group of persons. Holding that the assessee did not satisfy the requirement of carrying on activities for charitable purposes involving an object of general public utility, the Ld. CIT(E) rejected the application for registration under Section 12AB of the Act. Aggrieved by the order of the Ld. CIT (E) assessee is in appeal before this tribunal Ld. AR stated that certain issues relating to the assessee-trust were not properly explained before the Ld. CIT(E) and that the assessee may be granted one more opportunity to furnish the requisite details and documentary evidence in support of its claim. It was further submitted that the matter may be restored to the file of the Ld. CIT(E) for fresh consideration.

3.

On the other hand, Ld. DR did not raise any serious objection to the said request.

4.

We have heard the submissions of the parties and carefully perused the material available on record. We find that the impugned order has been passed mainly on account of the Ld. CIT(E) not being satisfied with the explanations and documents furnished by the assessee regarding its objects and activities. In the interest of substantial justice, we are of the considered view that the assessee deserves one more effective opportunity to place all the relevant material before the

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ITA No. 520/RJT/2025 Morbi Ceramic Manufacturers Association Ld. CIT(E) to establish that its objects are charitable in nature and are for the benefit of the general public. Accordingly, we set aside the impugned order and restore the matter to the file of the Ld. CIT(E) for de novo adjudication. The Ld. CIT(E) shall examine the assessee’s application afresh in accordance with law after affording adequate opportunity of hearing to the assessee. The assessee is also directed to fully comply with all notices issued by the Ld. CIT(E) and furnish all relevant documents, explanations, and evidences as may be required for proper adjudication of its application.

5.

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

Order is Pronounced in the open Court on 07/07/2026.

Sd/- Sd/- Sd/ Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 07/07/2026 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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