SHREE LAXMINARAYAN EDUCATION AND CHARITABLE TRUST,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 340/AHD/2025Status: DisposedITAT Ahmedabad30 September 2025Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL (Judicial Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee-trusts were not given sufficient opportunity to present substantial documents. Therefore, the matter was remanded back to the CIT(E) for fresh consideration of the applications, with directions to take into account any submissions and explanations provided by the assessees.

What were the facts?

Two trusts, Shree Kashtbhanjan Education and Charitable Trust and Shree Laxminarayan Education and Charitable Trust, applied for registration under Form 10AB. The Commissioner of Income Tax (Exemption) rejected their applications because the trusts failed to furnish requisite details and establish the genuineness of their activities, and for one trust, cited its charitable-cum-religious nature violating Section 80G(5)(ii) & Section 80G(5B).

What were the issues?

Whether the Commissioner of Income Tax (Exemption) was justified in rejecting the applications for registration under Section 80G(5) and Section 12A(1)(ac)(iii) without adequately allowing the trusts to submit required documents and prove the genuineness of their activities.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 80G(5)(ii),Section 80G(5B),Section 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Parin Shah, AR
For Respondent: Shri Alpesh Parmar, CIT. DR
Hearing: 30.09.2025Pronounced: 30.09.2025

Heard together (2 matters)

I.T.A. No.339/Ahd/2025
I.T.A. No.340/Ahd/2025

Read from the judgment's own cause title. This page is filed under one of them.

O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

1.

These two appeals have been filed by the different assessee against the separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad, both dated 29.12.2024. Since the issues & 340/Ahd/2025 Asst. Year : N.A - 2– raised in these appeals are interconnected, we consider it appropriate to reproduce the grounds of appeal in ITA No.339/Ahd/2025 .

2. The assessee has raised the following grounds of appeal:

“…1. The order passed by Ld.CIT(Exemption) is bad in law and required to be quashed.

2.

Ld.CIT (Exemption) erred in rejecting application for registration u/s.80G(5) of the Act by observing that trust is charitable cum religious trust and thus violated provision of section 80G(5)(ii) & 80G(5B) of the Act.

3. Ld.CIT(Exemption) ought to have considered the fact and activities of the trust and ought to have granted registration.

4. Without prejudice to the above and in alternative, Appellant trust pray to set aside the case with direction to verify activities of the trust and ought to have granted registration…”

3.

The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB under the provisions of the Act. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961, on the ground that the assessee-trust failed to furnish the requisite details/explanation and to establish the genuineness of its activities.

4.

Aggrieved by the orders of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.

5.

At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld. CIT(E) rejected the & 340/Ahd/2025 Asst. Year : N.A - 3– application of the assessee on the ground that that the assessee-trust failed to furnish substantial documents. Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld. CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.

7.

In the result, both the appeal of the assessee are allowed for statistical purposes.

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