SHREE JAMBUSAR VISA KHADAYATA VIDYA TEJAK MANDAL,VADODARA vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 463/AHD/2025Status: DisposedITAT Ahmedabad17 July 2025Bench: MS. SUCHITRA KAMBLE (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in rejecting the application without properly appreciating the facts and law, and that the principle of natural justice was violated. The Tribunal decided to set aside the matter to the CIT(E) to allow one more opportunity to the assessee.

What were the facts?

The assessee filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) rejected the application because a self-certified copy of the Trust deed/MOA, approved by the Charity Commissioner, was not filed, and he was not satisfied about the genuineness of the trust's activities.

What were the issues?

Whether the rejection of registration under Section 12A(1)(ac)(iii) was justified due to the non-submission of a charity-commissioner-approved MOA, and if principles of natural justice were followed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH, AHMEDABAD

Before: MS. SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Manish J Shah & Shri Rushin Patel, AR
For Respondent: Shri R P Rastogi, CIT-DR
Hearing: 15.07.2025Pronounced: 17.07.2025

O R D E R

PER SHRI NARENDRA PRASAD SINHA, AM:

1.

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad, (in short ‘the CIT(E)’), dated 28.12.2024, in respect of rejection of registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

The brief facts of the case are that the assessee had filed an application in Form No.10AB for registration of the trust under Section 12A(1)(ac)(iii) of the Act. In response thereto, the Ld. CIT(E) had called for certain details/documents vide notice dated 06.09.2024 which was Shree Jambusar Visa Khadayata Vidya Tejak Mandal vs. CIT(E) Page 2 of 5 partly complied. Thereafter, another notice dated 19.12.2024 was issued calling for self-certified copy of original Trust deed/MOA but the assessee had submitted a copy which was not approved by Charity Commissioner. Therefore, the Ld. CIT(E) rejected the application for registration under Section 12A(1)(ac) of the Act for the reason that he was not satisfied about the genuineness of the activities of the trust and also about whether the activities of the trust were in consonance with the objects of the trust.

3.

Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken by the assessee in this appeal: -

1. The Ld. CIT(E) erred in law and on facts in rejecting the application for registration under Section 12A(1)(ac)(iii) of the Act, without properly appreciating the facts and law of the case. The applicant duly submitted its self-certified Memorandum of Association (MOA). Although it was not certified by the Charity Office, it remains a violent document that establishes the existence and purpose of the organization.

2. The order under Section 12A(1)(ac)(iii) violates the principle of natural justice as no reasonable opportunity was provided to rectify the inadvertent omission of submitting self-certified copies of the MOA/AOA.

3. The appellant craves liberty to add, amend, or alter, any or all of the grounds on or before the date of hearing.

4.

Shri Rushin Patel, Ld. AR of the assessee submitted that the assessee had complied to the notice of the Ld. CIT(E) and had filed the required details. However, by mistake the copy of the unapproved Trust deed was filed. The Ld. AR requested that another opportunity may be allowed to the assessee to furnish the required documents, by setting aside the matter to the file of the Ld. CIT(E).

Shree Jambusar Visa Khadayata Vidya Tejak Mandal vs. CIT(E) Page 3 of 5 5. Per contra, the Ld. Sr. DR supported the order of the Ld. CIT(E). However, he had no objection if the matters were set aside to the file of the Ld. CIT(E) for allowing another opportunity to the assessee.

6.

We have considered the submissions of the assessee. The application of the assessee was rejected only for the reason that self- certified copy of original Trust deed/MOA, duly approved by the Charity Commissioner, was not filed. In fact, the assessee had complied to the notices of Ld. CIT(E) but copy of the unapproved Trust deed only was filed. The assessee has requested for one more opportunity to produce the required document. In the interest of justice, we deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to allow one more opportunity to the assessee to submit the required documents and details and, thereafter, re-consider the application of the assessee for registration under Section 12A(1)(ac)(iii) of the Act. At the same time, the assessee is also directed to make compliance before the Ld. CIT(E) in the course of set aside proceedings and produce the required documents/clarifications. In case the assessee fails to comply before the Ld. CIT(E), he will be free to pass the order as deemed fit.

7.

In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open Court on this 17th July, 2025.

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