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Facts
The assessee, Shree Jagvallabh Parshwanath Bhatha Ghar Trust, filed appeals against the Commissioner of Income Tax (Exemption)'s denial of approval for registration under Section 12A(1)(ac)(iii) and rejection of approval under Section 80G(5) of the Income Tax Act. The CIT(E) rejected the applications due to the assessee's failure to furnish required documents listed in Rule 17A(2) and non-compliance with notices, attributing it to improper guidance and an unmonitored email account.
Held
The Tribunal condoned a 173-day delay in filing the appeals and, despite noting the assessee's lack of vigilance, granted another opportunity to furnish the necessary documents. It imposed a cost of Rs. 5,000, to be deposited in the 'Prime Minister's National Relief Fund', and directed the CIT(E) to re-adjudicate the applications, clarifying that the Section 80G(5) approval should be decided after the Section 12A registration.
Key Issues
Whether the Commissioner of Income Tax (Exemption) was justified in denying approval under Section 12A(1)(ac)(iii) and rejecting approval under Section 80G(5) due to non-submission of documents and non-compliance with notices, and if the assessee should be granted another opportunity.
Sections Cited
12A(1)(ac)(iii), 80G(5), 115TD, 12A, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Ms. Suchitra Kamble & Shri Narendra Prasad Sinha
आदेश/ORDER PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER
These two appeals are filed by the assessee against the denial of approval u/s. 12A(1)(ac)(iii) of the Income Tax, 1961 [in short “the Act”] and rejection of approval u/s 80G(5) of the Act vide separate orders dated 02/09/2024 and 03/09/2024 respectively, passed by the Commissioner of Income Tax (Exemption), Ahmedabad [in short the CIT(E)].
& 1154/Ahd/2025 A.Y. NA Shree Jagvallabh Parshwanath Bhatha Ghar Trust vs. CIT (Exemption) 2. There was delay of 173 days in filing the two appeals. The assessee had filed a condonation application along with an affidavit explaining the reason for delay. It is stated that there was delayed communication and improper guidance on the part of the consultant of the assessee which led to delay in filing this appeal. It was explained that the matter was subsequently referred to another CA who advised to file the appeal and, in the process, there was this delay. Considering the explanation of the assessee, the delay in filing the appeals is condoned.
The following grounds have been taken in the two appeals: -
1. That the Ld. CIT (Exemption), Ahmedabad, has erred in law and facts by rejecting the application in Form No.10AB u/s.12A(1)(ac)(iii) of the Act, for the Registration under Section 12A of the Act and therefore your Honors are requested to direct the CIT (Exemption) to grant registration under Section 12A of the Act.
That the Ld. CIT (Exemption), Ahmedabad has erred in law and facts by giving direction. Further, the applicant should compute the tax liability under Section 115TD of Income Tax Act, 1961 read with Rule 17CB of IT Rules and therefore the said direction is required to quashed.
3. That your appellant craves liberty to add, amend, alter and delete any grounds of appeal before the final hearing.
1. That the Ld. CIT (Exemption), Ahmedabad, has erred in law and facts by rejecting the application in Form No.10AB w/s. 80G(5)(iii) of the Act, for the Registration under Section 80G of the Act and therefore your Honors are requested to direct the CIT (Exemption) to grant registration under Section 80G of the Act. 2. That your appellant craves liberty to add, amend, alter and delete any grounds of appeal before the final hearing.
& 1154/Ahd/2025 A.Y. NA Shree Jagvallabh Parshwanath Bhatha Ghar Trust vs. CIT (Exemption) 4. Shri Samit Jain, the ld. Counsel for the assessee submitted that the assessee trust did not furnish the documents enlisted in Rule 17A(2) along with the application. The Ld. CIT(E) had allowed opportunities to the assessee to furnish the details vide notices dated 04.07.2024 and 08.08.2024. However, there was no compliance to the notices as the e-mail account on which the notice was sent was not regularly accessed. Therefore, the application of the assessee was rejected as the Ld. CIT(E) was not satisfied about the genuineness of the activities of the trust and the provisional registration granted earlier was also cancelled. The application for approval u/s 80G(5) of the Act was also rejected in the absence of any registration certificate u/s 12A of the Act. The Ld. AR submitted that the assessee is engaged in charitable activities and it may be allowed another opportunity to furnish the documents as required by setting aside the matter to the file of the Ld. CIT(E).
Per Contra Shri Sher Singh, Ld. CIT. DR submitted that he has no objection if the matter is set-aside to the file of the Ld. CIT(E).
We have carefully considered the submissions of the assessee. We do not find any reasonable explanation for non- compliance before the Ld. CIT(E). In fact, the assessee was not careful and vigilant enough while filing the application in Form No. 10AB of the Act, as the documents enlisted in Rule 17A(2) were not attached along with the application. Thereafter, no compliance was made to the notices of the Ld. CIT(E) and the details and & 1154/Ahd/2025 A.Y. NA Shree Jagvallabh Parshwanath Bhatha Ghar Trust vs. CIT (Exemption) documents as required were not furnished. We therefore, deem it proper to impose a cost of Rs.5,000/- on the assessee, which should be deposited in “Prime Minister’s National Relief Fund” within a period of 15 days from the receipt of this order. Subject to the payment of cost, the Ld. CIT(E) is directed to allow one more opportunity to the assessee to furnish the details and documents as required and thereafter, re-adjudicate the applications of the assessee. The matter regarding approval u/s 80G(5) of the Act should be decided after first deciding the matter of registration u/s 12A of the Act. The assessee is also directed to comply before the Ld. CIT(E) and produce the documents and clarification as required by him.
In the result, both the appeals filed by the assessee are allowed for statistical purposes. This order is pronounced in the Open Court on 03/09/2025. Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 03/09/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद