JAIN SHWETAMBAR MURTI PUJAK VISHA SHRIMALI MITRA MANDAL,AHMEDABAD vs. CIT(EXEMPTION), AHMEDABAD

PDF · subscribers
ITA 1155/AHD/2025Status: DisposedITAT Ahmedabad10 July 2025Bench: SHRI TR SENTHIL KUMAR (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)4 pages
AI SummaryAllowed for statistical purposes

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, acknowledging the assessee's charitable activities. While finding the assessee not vigilant in its compliance, the Tribunal imposed a cost of Rs. 5,000/- and directed the Ld. CIT(E) to grant one final opportunity to the assessee to furnish the necessary documents, after which the application should be re-adjudicated.

What were the facts?

The assessee, a trust, was granted provisional approval under Section 12A(1)(ac)(iii) but its subsequent application for final registration was rejected by the Ld. CIT(E) due to non-furnishing of required documents (self-certified copy of registration, note on activities) despite opportunities. The assessee appealed, citing non-compliance was due to its former CA's fault, and sought condonation for a 203-day delay in filing the appeal.

What were the issues?

Whether the Ld. CIT(E) was justified in rejecting the application for registration under Section 12A(1)(ac)(iii) due to non-compliance, and if the assessee should be granted another opportunity to furnish documents subject to a cost.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 115TD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ A” BENCH, AHMEDABAD

Before: SHRI TR SENTHIL KUMAR & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Prakash D Shah, AR
For Respondent: Shri Alpesh Parmar, CIT.DR
Hearing: 07/07/2025Pronounced: 10/07/2025

आदेश/O R D E R

PER NARENDRA PRASAD SINHA, AM:

1.

This appeal is filed by the assessee against the order passed by the Learned Commissioner of Income Tax (Exemption) Ahmedabad, (in short “the Ld.CIT(E)”) dated 23.08.2024, in the proceedings u/s. 12A(1)(ac)(iii) of the Act.

ITA No.1155/Ahd/2025 Asst. Year NA

2 2. There was a delay of 203 days in filing of this appeal. The assessee has filed a condonation application along with affidavit of Shri Dilipkumar Jayantilal Shah, trustee of the assessee-trust and explained the reason for the delay. It is submitted that the delay was for the reason that the concerned CA neither made compliance before the Ld. CIT(E) nor informed the assessee about the rejection of the application. Thereafter, the assessee had changed his CA and the present appeal has been filed with a delay of 203 days. It was submitted that the assessee was engaged in charitable activities and the delay was not deliberate. Considering the explanation of the assessee, the delay in filing the appeal is condoned.

3.

The brief facts of the case are that the assessee was granted provisional approval u/s. 12A(ac)(iii) of the Act on 27.05.2021 for the AYs 2021-22 & 2023- 24. Thereafter, the assessee had made an application for registration u/s. 12A(ac)(iii) of the Act by filing Form No. AB on 28.02.2024. The Ld. CIT(E) noticed that the assessee did not furnish a self-certified copy of registration with the Registrar and also a note on the activities of the trust was not enclosed with the application. The Ld. CIT(E) has allowed opportunities to the assessee to furnish the details vide notice dated 04.05.2024 and 29.06.2024, however, there was no compliance to the notices. 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 provision registration granted earlier was also cancelled.

4.

Aggrieved with the Order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal: Asst. Year NA 3

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

2. That the Id. 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.

5.

Shri Prakash D Shah, Ld.AR appearing for the assessee explained that the non-compliance before the Ld. CIT(E) was due to the fault of the earlier CA who could not attend the proceedings due to his pre-occupation with audit and filing of return. The Ld.AR requested that the assessee is engaged in charitable activities and, therefore, another opportunity may be allowed to furnish the documents as required by setting aside the matter to the file of the Ld. CIT(E).

6.

Per Contra Shri Alpesh Parmar, Ld. CIT. DR submitted that he has no objection if the matter is set-aside to the file of the Ld. CIT(E).

7.

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 self-certified copy of the registration and a note on the activities of the trust was not enclosed along with the application. Thereafter, no compliance was made to the notices of the Ld. CIT(E) and the details and documents as required were not furnished. We therefore, deem it proper to impose a cost of Rs.5,000/- on the assessee,

ITA No.1155/Ahd/2025 Asst. Year NA

4 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 application of the assessee. The assessee is also directed to comply before the Ld. CIT(E) and produce the document and clarification as required by him.

8.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the Open Court on 10th July, 2025 at Ahmedabad.

More judgments on Section 12A(1)(ac)(iii)

All 1,616 judgments and leading authorities on Section 12A(1)(ac)(iii) →

Recent GST High Court judgments

Search GST case law →