SHRI MEWAD MAHESWARI SAMAJ TOWER (BADODA),VADODARA vs. THE CIT(EXEMPTION), AHMEDABAD

The grounds of appeal are as under:-

The Comm. Of Income-tax (Exemption) has erred in coming to the conclusion that your Appellant has failed to prove with corroborative evidence that he has not incurred any expenditure beyond the members and money is spent only for Mewad Maheswari Samaj community.

Your Appellant also submits that Appellant after giving necessary submission and explanation the Comm. Of Income-tax (Exemption) has failed to issue Show Cause Notice in support of contention raised by the Appellant in support of it not being engaged in a particular community as alleged.

A perusal of the Trust shows beyond doubt that the Trust is firm for General Public Community at large and is engaged in social Medical, educational activities for all without cast or creed and it is not solely and exclusively for the community of Mewad Maheswari Samaj community has alleged by the Commissioner of Income-tax (Exemption).

In view of facts of the case and principle of Law as well as keeping in mind the various activities undertaken by the Trust. The Appellant ought to have been granted approval in Form 12AA Trust Registration certificate.

The applicant/appellant trust filed application in Form No. 10AB on 19.10.2024 for registration of the Trust under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. Due to the clerical error in Form No. 10AB, and to comply as per Circular No. 7 of 2024 issued by CBDT dated 25.04.2024, the applicant/appellant subsequently filed on 19.10.2024 i.e. after notification of the Finance Act, 2024 which came into effect on 01.10.2024. The CIT(E) rejected the application and also cancelled the provisional registration

Being aggrieved by the order dated 26.06.2025 passed by the CIT(E), the applicant/appellant filed present appeal.

The Ld. AR submitted that the applicant/appellant trust has been established with the intent to serve the public at large, without any bias based on caste or community. The Ld. AR also pointed the main object at the time of hearing from the Trust Deed. Besides that the Ld. AR submitted that the CIT(E) has not given any opportunity of hearing to the applicant/appellant before rejecting the application of the appellant trust. Therefore, the Ld. AR submitted that the matter may be remanded back to the file of the CIT(E) for proper adjudication on merits.

The Ld. DR relied upon the order of the CIT(E) and submitted that the trust is for only one community and not for general public.

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the object clause shown by the Ld. AR clearly set out that out of fourteen objects only four objects are for specific community and besides that CIT(E) has not gone through the financials which can set out that the applicant/appellant trust is working only for one particular community and not for general public as well as the applicant/appellant trust is not for charity purpose. Therefore, it will appropriate to remand this matter to the file of the CIT(E) and directed to verify the financials of the applicant/appellant trust as given under the provisions of Income Tax Act and thereafter adjudicate the same as per law. Needless to say, the applicant/appellant be given opportunity of hearing by following principles of natural justice. The appeal of the applicant/appellant is partly allowed for statistical purpose.

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

Revenue 3. Concerned CIT 4. CIT (A)

DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,