KEVAL GHYAN SEVA NIKETAN TRUST,VYARA vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 236/AHD/2025Status: DisposedITAT Ahmedabad07 May 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the CIT(E) and allowed the assessee one more opportunity to make compliance. The CIT(E) was directed to allow this opportunity and the assessee was directed to furnish the required details.

What were the facts?

The assessee applied for approval under Section 80G(5)(iii) of the Income Tax Act. The CIT(E) rejected the application due to non-compliance with notices and failure to provide requested details. The assessee attributed the non-compliance to a counsel's default.

What were the issues?

Whether the CIT(E) erred in rejecting the 80G approval application without providing sufficient opportunity, and if the assessee should be allowed another chance to comply due to counsel's default.

Which sections of the Income-tax Act were involved?

Section 80G(5)(iii),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Mehul K Patel, Advocate
For Respondent: Shri R P Rastogi, CIT-DR
Hearing: 05.05.2026Pronounced: 07.05.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’], dated 21.11.2024 in the proceeding u/s 80G(5)(iii) of the Income Tax Act.

2.

The brief facts of the case are that the assessee had filed an application for approval of the Trust u/s. 80G(5)(iii) of the Act. The Ld. CIT(E) had called for certain details vide notices dated 10.09.2024 and 26.10.2024, which were not complied by the assessee. Therefore, the Ld.

ITA No. 236/Ahd/2025 Keval Ghyan Seva Niketan Trust Vs. CIT(E) 2 CIT(E) had rejected the application of the assessee and the provisional approval granted earlier was also cancelled.

3.

Aggrieved with order of the Ld. CIT(E), the assessee is in second appeal before us. The following grounds have been taken in this appeal.

1.

That on facts, and in law, the learned CIT (Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for approval u/s 80G(5)(iii) of the Act, vide ex- parte order. 2. That on facts and in law, the application made u/s 80G(5)(iii) ought to have been granted by learned CIT(Exemption) as the appellant is having a valid registration u/s 12A of the Act. 3. The appellant craves liberty to add, alter, amend any ground of appeal.

4.

Shri Mehul K. Patel, the Ld. AR of the assessee submitted that the Ld. CIT(E) had rejected the application only on the ground that no compliance was made before him and the details and documents as called for were not provided. He explained that the non-compliance before the Ld. CIT(E) was due to the default of the counsel and the assessee being engaged in charitable activities should not be made to suffer for such default. He, therefore, requested that the assessee may be allowed another opportunity to make compliance before the Ld. CIT(E) by setting aside the matter to him.

5.

Shri R P Rastogi, the Ld. CIT-DR, had no objection if the matter was set aside to Ld. CIT(E) for allowing another opportunity to the assessee.

ITA No. 236/Ahd/2025 Keval Ghyan Seva Niketan Trust Vs. CIT(E) 3 6. We have considered the request of the assessee. The application of the assessee was rejected only for the reason that no compliance was made before the Ld. CIT(E) and the details and documents as called for were not furnished. In the absence of any documentary evidence, the Ld. CIT(E) was not satisfied about the genuineness of the activities of the Trust and about fulfilment of conditions as laid down in section 80G(5) of the Act. Considering the fact that the assessee is engaged in charitable activities, we deem it proper to allow another opportunity to the assessee by setting aside the matter to the file of Ld. CIT(E). The Ld. CIT(E) is directed to allow one more opportunity to the assessee to make compliance and to furnish the details and documents as required by him. The assessee is also directed to make compliance before the Ld. CIT(E) in the course of set aside proceeding.

7.

In the result, the appeal of the assesse is allowed for statistical purpose.

Order pronounced in the Court on 07/05/2026 at Ahmedabad.

Sd/- Sd/- (SANJAY GARG) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 07th May, 2026 (True Copy) Neelesh,Sr. PS आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : अ�ेिषत 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड� फाईल /Guard file.

ITA No. 236/Ahd/2025 Keval Ghyan Seva Niketan Trust Vs. CIT(E)

देशानुसार/BY ORDER, आदेशानुसार देशानुसार देशानुसार पंजीकार (Dy./Asstt.Registrar) उप/सहायक सहायक सहायक पंजीकार सहायक पंजीकार पंजीकार आयकर आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अहमदाबाद अिधकरण अहमदाबाद अहमदाबाद / ITAT, Ahmedabad अहमदाबाद

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