AASHNA VIKAS TRUST,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

The brief facts of the case are that the assessee-trust filed an application in Form No. 10AB seeking regular registration under section 12A(1)(ac)(iii) of the Act. The application was filed pursuant to the provisional registration granted earlier under section 12AA of the Act. The Ld. CIT(E) rejected the application on the ground that the assessee failed to furnish evidence regarding the genuineness of its activities, despite issuance of notices dated 27.08.2024 and 16.10.2024 via email. It was further noted by the Ld. CIT(E) that the assessee neither filed any submissions nor sought any adjournment during the proceedings.

Subsequently, the application u/s 80G was rejected by the CIT(E) vide separate order dated 15.11.2024, solely on the ground that the assessee did not have a valid registration under section 12A, which is a pre-condition for granting approval under section 80G.

Aggrieved by the orders of the Ld. CIT(E), the assessee is now in appeal before the Tribunal.

Before us, the Ld. AR submitted that the assessee trust was formed with genuine charitable intent and registered with the Charity Commissioner in 2019. The Ld. AR submitted that assessee-trust is indeed carrying out genuine charitable activities, but due to communication issues, it failed to respond to the notices sent by the Ld. CIT(E), which led to the rejection of its application. The Ld. AR also submitted that the notices sent by the Ld. CIT(E) through email to the address: bipinvyas1948@gmail.com was inadvertently overlooked as the assessee-trust's work was primarily field-based and mobile in nature. The Ld. AR submitted that this was an unintentional omission and not a case of deliberate non-compliance. With respect to the 80G application, it was submitted that the rejection was consequential upon denial of registration under section 12A, and if registration is restored, the application under section 80G should also be reconsidered.

The Ld. DR, on the other hand, supported the order of the Ld. CIT(E) stating that there was no compliance with the notices issued.

We have heard the rival contentions and perused the material available on record. It is an admitted fact that the assessee trust was granted provisional registration under section 12AA and filed applications for regular registration and 80G approval within the prescribed time. The application under section 12A was rejected on the ground of non-response to the notices, and the 80G application was rejected on the basis that valid registration under section 12A was not available. However, we find that the assessee has provided a reasonable explanation regarding the delay and has also placed on record details of the activities carried out, such as maintaining 70 Gir cows in the Gau Shala, having audited accounts, filing returns etc.. We are, therefore, of the view that, in the interest of justice, one more opportunity should be granted to the assessee to present its case before the Ld. CIT(E), along with all supporting documentary evidence, especially since the denial of 80G approval is directly linked to the denial of section 12A registration.

1 In view of the above, we set aside both the impugned orders passed by the Ld. CIT(E) and restore the matters to his file for fresh adjudication. The assessee is directed to cooperate in the proceedings and furnish all necessary documents to substantiate its claim for registration. The Ld. CIT(E) shall decide the matters afresh in accordance with law, after giving adequate opportunity of being heard.

In the result, both the appeals of the assessee are allowed for statistical purposes. The order is pronounced in the open Court on 17.09.2025 (SIDDHARTHA NAUTIYAL) JUDICIAL MEMBER Ahmedabad; Dated 17/09/2025 **btk (DR. B.R.R. KUMAR) VICE-PRESIDENT आदेश की प्रतिलिपि □ ग्रेषित/