BAVISI BHA vs. AR SAMAJ RAIPUR AMDAVAD TRUST,AHMEDABADVS.CIT (EXEMPTION), AHMEDABAD

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ITA 1307/AHD/2025Status: DisposedITAT Ahmedabad16 April 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay, finding sufficient cause. They decided to restore the matter to the CIT(E) to allow the assessee an opportunity to submit amended objects of the trust and reconsider the application.

What were the facts?

The assessee's appeal was filed with a significant delay of 375 days due to the advocate not informing them about the CIT(E)'s order denying registration. The CIT(E) had rejected the application for registration under Section 12AB because the trust's objects were found to benefit a specific community, not the public at large.

What were the issues?

Whether the delay in filing the appeal should be condoned and whether the assessee should be granted an opportunity to submit amended trust objects for reconsideration of registration.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA

For Appellant: Shri Parin Shah, AR, Shri Rignesh Das, CIT. DR
For Respondent: Shri Rignesh Das, CIT. DR
Hearing: 21/01/2026Pronounced: 16/04/2026

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1307/Ahd/2025 (िनधा�रण वष� / Assessment Year : NA) बनाम Bavisi Bhavsar Samaj CIT (Exemption) Raipur Amdavad Trust Ahmedabad / A/3, Girdhar Chambers, Vs. Dhal Ni Pole, Astodia, Ahmedabad, Gujarat- 380001 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAATB1443Q (Appellant) .. (Respondent) अपीलाथ� ओर से /Appellant by : Shri Parin Shah, AR ��यथ� क� ओर से/Respondent by : Shri Rignesh Das, CIT. DR Date of Hearing 21/01/2026 Date of Pronouncement 16/04/2026 O R D E R PER ANNAPURNA GUPTA, AM: The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption), Ahmedabad (hereinafter referred to as “CIT(E)”), dated 30.03.2024 passed under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”).

2.

The appeal is delayed for filing by 375 days. Ld. Counsel for the assessee has filed an application seeking condonation of delay stating that the Advocate to whom the appellate work was

ITA No.1307/Ahd/2025 [Bavisi Bhavsar Samaj Raipur Amdavad Trust vs. CIT(E)] - 2 – instructed did not inform about the passing of the order and it was only when a physical demand notice was received from the Department stating that their exemption had been retracted and they were liable to pay Income Tax that the assessee became aware of the passing of the order of the Ld. CIT(E) denying grant of registration u/s.12AB of the Act. For the aforesaid reasons, he stated that the appeal got delayed for filing by 375 days.an affidavit stating the above facts on oath by the Trustee of assessee trust, Mr. Hasmukh Kanaiyalal Bhavsar, was filed before us.

3.

Ld. DR opposed the same.

4.

Having heard the rival submissions, we are inclined to condone the delay of 375 days in the filing of the present appeal before us. We find sufficient cause to have been adduced for the delay in filing of the appeal before us, the delay being attributable to the professional engaged by the assessee for the purpose who did not inform about the passing of order of the Ld.CIT(E). Also we have noted that for a mere technical consideration of delay in filing appeal the assessee would be robbed of an opportunity to avail registration as a charitable entity, which would grant substantial benefits to the assessee by way of exemption of its income from taxation. Noting therefore sufficient cause to have been adduced by the assessee and keeping the interest of justice in mind, we condone the delay of 375 days in the filing of the present appeal before us.

5.

Taking up the appeal for hearing, the Ld. Counsel for the assessee pointed out from the order passed by the Ld. CIT(E) that

ITA No.1307/Ahd/2025 [Bavisi Bhavsar Samaj Raipur Amdavad Trust vs. CIT(E)] - 3 – the application for registration of the assessee trust u/s.12AB of the Act was rejected for the reason that the objects of the assessee trust were found to benefit a particular religious community/caste i.e. Bavisi Bhavsar Samaj and were not for the benefit of the public at large. Ld. Counsel for the assessee contended that firstly adequate opportunity of hearing was not granted to the assessee and the assessee trust had amended the objects noted to be for the benefit of a particular religious caste or community, by way of a resolution passed in the meeting of the Board of Trustees. The change was accepted unanimously by all the trustees of the applicant trust and necessary compliances were also made by the trust in accordance with the Gujarat Public Trust Act, 1950. This fact he contended was brought to the notice of the Ld.CIT(E) and is recorded in his order, but Ld.Counsel for the assessee contended, the Ld. CIT(E) had not afforded opportunity to the assessee trust to file copy of amended objects of the trust. He, therefore, prayed that the matter may be restored back to the file of the Ld. CIT(E) for re-consideration of the application of the assessee.

6.

Ld. DR, however, contended that adequate opportunity had been granted to the assessee.

7.

We have heard both the parties. Undoubtedly the assessees application seeking registration u/s 12A of the Act has been denied finding some of its object to benefit a particular caste/community. We have also noted from the order of the Ld.CIT(E) that the assessee trust did contend before the Ld. CIT(E) that it had changed the said objects of the trust. The Ld.

ITA No.1307/Ahd/2025 [Bavisi Bhavsar Samaj Raipur Amdavad Trust vs. CIT(E)] - 4 – CIT(E) has noted that the assessee did not furnish any copy of the resolution passed by the Board of trustees or any documentary evidence substantiating its contention. Since, the Ld. Counsel for the assessee has contended before us that it is in possession of the amended objects and sufficient opportunity was not given by the Ld. CIT(E) to furnish the same before him, we are of the view that in the interest of justice, the assessee should be given an opportunity to furnish the amended objects of the trust, since it goes to the root of the matter on the basis of which the assessee trust has been denied registration u/s 12A of the Act.

8.

In the light of the same, we restore the issue back to the file of the Ld. CIT(E) to reconsider the application of the assessee u/s.12AB of the Act and decide the same after granting adequate opportunity of hearing to the assessee.

9.

In the result, the appeal of the asessee is allowed for statistical purposes.

This Order pronounced on 16/04/2026 Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 16/04/2026 S. K. SINHA True Copy आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��यथ� / The Respondent. 2. 3. संबंिधत आयकर आयु� / Concerned CIT आयकर आयु�(अपील) / The CIT(A)- 4. �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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