RABARI DHARAMGURU GADI,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 480/AHD/2025Status: DisposedITAT Ahmedabad17 November 20251 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) did not consider all details provided by the applicant and did not provide an opportunity for a hearing. Therefore, the matter was remanded back to the CIT(E) for fresh adjudication.

What were the facts?

The assessee, a trust, applied for registration under section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application, citing that the trust's objects were not for the benefit of the general public and its activities were not genuine. The assessee appealed this order.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without proper consideration of evidence and without providing a hearing to the assessee.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Hearing: 15/10/2025Pronounced: 17/11/2025

आदेश/O R D E R आदेश आदेश आदेश PERSUCHITRA KAMBLE, JM:

1.

This appeal has been preferred by the assessee against the order passed by the Commissioner of Income-tax (Exemptions), Ahmedabad [hereinafter referred to as “CIT(Exemption)”], dated 30.12.2024 whereby the learned CIT(Exemption) rejected the assessee’s application filed in Form No. 10AB under section 12AB(1)(ac)(iii) of the Income-Tax Act, 1961 [hereinafter referred to as “the Act”] for grant of registration under section 12AB and also cancelled the provisional registration earlier granted to the assessee under the said provision.

2.

The ground raised by the assessee in appeal reads as under:

(l) That on facts, and in law, the learned CIT(Exemptions), Ahmedabad has grievously erred in rejecting the application for registration u/s.12A(l)(ac)(iii) of the Act on the ground that the trust cannot be categorized either as religious or charitable trust and the activities of the trust cannot be held to be genuine in accordance with Income Tax Act, 1961. (2) The learned CIT(Exemption), Ahmedabad has failed to properly consider and appreciate that the trust is very old trust and that the charitable and religious activities carried out by the trust are duly supported by evidences and hence ought to have allowed the application for approval filed by the appellant on merits. (3) The appellant craves leave to add, alter, amend any ground of appeal.

3. The applicant/appellant filed application for registration of the trust u/s 12AB of the Income Tax Act, 1961. The applicant/appellant was granted provisional approval as per Form 10AC on 12.11.2022 from A.Y. 2023-24.The CIT(E) rejected the application vide order dated 30.12.2024 for the reason that the objects were confined to the seat/throne of Dharam Guru (priest) of Rabaris holding that the trust is not for the benefit of the general public.

4.

Being aggrieved by the order of the CIT(E), the applicant/appellant filed the present appeal.

5.

The Ld. AR submitted that vide reply dated 20.12.2024 the applicant mentioned that there is no instrument of Trust which is submitted at the time of registration with charity office which is specifically mention in clause 4 and 5 of registration application form the mode of appointment of Trustee. It is specifically mention in registration form in para 2 that “Mahant Among Disciples (Shishya) to be appointed and this system is ancestry (Vanshparagat system) .

6.

The Ld. DR relied upon the order of the CIT(E).

7.

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(E) has not considered all the details of the applicant/appellant which was filed during the application in Form No.10AB and also not given opportunity of hearing to the applicant /Appellant, therefore, it will be appropriate to remand back this matter to the file of the CIT(E) for verifying the details filed by the applicant/appellant and decide/adjudicate the matter a fresh on merit and as per Income Tax Statute. Needless to say, the applicant be given opportunity of hearing by following principles of natural justice. Thus, the appeal of the applicant/appellant is partly allowed for statistical purpose.

8.

In the result, the appeal of the applicant/appellant is partly allowed for statistical purpose.

Order pronounced in the Court on 17 November, 2025 at Ahmedabad.

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