DASTUR KAYOJI MIRZA MEMORIAL FUND,VALSAD vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 2076/AHD/2025Status: DisposedITAT Ahmedabad19 May 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal and directed the CIT(E) to grant another opportunity to the assessee to produce required documents, subject to payment of Rs. 10,000/- cost. The CIT(E) is to re-adjudicate the matter thereafter.

What were the facts?

The assessee trust applied for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) rejected the application as the trust's objects were confined to the Parsi community and not the public at large, and the assessee failed to comply with a show cause notice.

What were the issues?

Whether the objects of the trust are for the benefit of the public at large, and whether the assessee should be given another opportunity to comply with the show cause notice.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Rasesh Shah, AR
For Respondent: Shri Ajay Pratap Singh, CIT-DR
Hearing: 11.05.2026Pronounced: 19.05.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad, [in short “CIT(E)”] dated 25.09.2024 in the proceeding u/s 12A(1)(ac)(iii) of the Income Tax Act.

2.

There was delay of 338 days in filing of this appeal. The assessee has filed a condonation application explaining the reason for delay. It has been submitted that the order of Ld. CIT(E) was received on e-mail which was inadvertently not checked timely by the Trustees. Sh. Rasesh Shah, the Ld. AR explained that the Trustees were not regular in checking the

ITA No. 2076/Ahd/2025 Dastur Kayoji Mirza Memorial Fund Vs. CIT(E) 2 email account and were under the impression that the order of the Income Tax Department would be served physically. The auditor had subsequently noticed the order of the Ld. CIT(E) on the Income Tax portal and informed the assessee and thereafter the present appeal was filed, and in the process there was delay of 338 days. The assessee as submitted that the delay was neither intentional nor deliberate. Considering the explanation of the assessee, the delay in filing of this appeal is condoned.

2.

The brief facts of the case are that the assessee had filed an application in Form No. 10AB for of registration of the Trust u/s. 12A(1)(ac)(iii) of the Act. The Ld. CIT(E) had required the assessee to furnish certain details. In compliance thereto, the assessee had furnished some of the details on 20.08.2024. Thereafter, the Ld. CIT(E) had noted that the objects of the trust were confined for the benefit of Zoroastrians/Parsi community and not for the public at large. In this regard, the Ld. CIT(E) had called for further details vide show cause notice dated 12.09.2024 which was not complied by the assessee. Therefore, the Ld. CIT(E) had rejected the application of the assessee vide the impugned order and the provisional registration granted earlier was also cancelled.

3.

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

1 On the facts and in circumstances of the case as well as law on the subject, the learned CIT(E) has erred in rejecting the application of assessee for registration u/s. 12AB of the I.T. Act, 1961.

ITA No. 2076/Ahd/2025 Dastur Kayoji Mirza Memorial Fund Vs. CIT(E) 3 2. It is therefore prayed that order of CIT, passed u/s. 12AB of I.T. Act, 1961, may please be cancelled and registration may be granted to the file of CIT with appropriate direction. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.

4.

Shri Rasesh Shah, the Ld. AR of the assessee submitted the assessee is a charitable institution and that its activities were carried on for the benefit of the general public. He explained that the Ld. CIT(E) had rejected the registration application only for the reason that no compliance could be made to the show cause notice dated 12.09.2024. The Ld. AR, therefore, requested that the assessee may be allowed another opportunity for making compliance and furnishing the required documents by setting aside the matter to the file of Ld. CIT(E).

5.

Per contra, Shri Ajay Pratap Singh, the Ld. CIT-DR, defended the order of the Ld. CIT(E). He, however, had no objection if the matter was set aside to the file of Ld. CIT(E) for allowing another opportunity to the assessee.

6.

We have considered the rival submissions. The Ld. CIT(E) had rejected the application of the assessee for the reason that the object of the applicant trust was found to be confined to the benefit of Zoroastrians/Parsi community and not for the benefit of public at large. In this regard, the Ld. CIT(E) had issued a show cause notice to the assessee on 12.09.2024 and required certain specific information. The assessee was required to produce evidence that the expenditures incurred by it were not for any particular religious community or caste but for the benefit of public at large. No compliance was made by the

ITA No. 2076/Ahd/2025 Dastur Kayoji Mirza Memorial Fund Vs. CIT(E) 4 assessee to this show cause notice and, therefore, the application of the assessee was rejected. The assessee has not explained the reason for non-compliance before the Ld. CIT(E). The assessee was aware of the pending proceeding before the Ld. CIT(E), still no care was exercised and no compliance was made to the show cause notice. The assessee was certainly negligent and his act was lethargic. We, therefore, deem it proper to impose a cost of Rs. 10,000/- on the assessee which should be deposited to Prime Minister National Relief fund within a period of 15 days from the date of receipt of this order. Subject to payment of the cost, the Ld. CIT(E) is directed to allow another opportunity to the assessee to produce the evidences and documents as required vide his show cause notice dated 12.09.2024 or any other document as required by him. The assessee is also directed to make compliance before the Ld. CIT(E) and produce the documents and evidences as called for. Thereafter, the Ld. CIT(E) may re-adjudicate the matter on the basis of the materials brought on record.

7.

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

Order pronounced in the Court on 19/05/2026 at Ahmedabad.

Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 19th May, 2026 Neelesh, Sr. P.S (True Copy) 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.

ITA No. 2076/Ahd/2025 Dastur Kayoji Mirza Memorial Fund Vs. CIT(E)

5 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. आदेशानुसार/BY ORDER, आदेशानुसार आदेशानुसार आदेशानुसार पंजीकार (Dy./Asstt.Registrar) उप उप/सहायक उप उप 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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