JAFARI WELFARE TRUST,SIDDHPUR vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 185/AHD/2025Status: DisposedITAT Ahmedabad25 April 2025Bench: SHRI SIDDHARTHA NAUTIYAL (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the matter to the CIT(E) for de-novo consideration, acknowledging the admitted non-compliance by the assessee. A cost of Rs. 5,000/- was imposed on the assessee, payable to the Prime Minister Relief Fund.

What were the facts?

The assessee, Jafari Welfare Trust, applied for approval under Section 80G. The CIT(E) issued notices requesting details, but the assessee did not respond, citing practical difficulties and senior citizen trustees unfamiliar with digital communication. The CIT(E) rejected the application and cancelled provisional approval.

What were the issues?

Whether the CIT(E) rightly rejected the application for 80G approval due to non-response to notices, and whether the assessee should be granted an opportunity for de-novo consideration.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Vivek Chavda, A.R
Hearing: 23.04.2025

O R D E R

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

1.

This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemptions), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 21.11.2024.

2.

The Assessee has taken the following grounds of appeal:-

“1.1 The learned CIT (Exemption) erred in law and on facts in rejecting the appellant’s application for approval under section 80G of the Income Tax Act, 1961 by order dtd:21.11.2024. 1.2 The learned CIT (Exemption) erred in cancelling the approval to the appellant under section 80G without providing sufficient and specific opportunity to the appellant to present its case. Therefore, the appellant shall be granted opportunity to produce additional evidences. 1.3 The learned CIT(Exemption) erred in treating non-response to email notices as non-compliance when: (a) The trustees had already demonstrated their compliance by submitting all required documents with Form 10AB (b) The inability to respond to notices was due to practical difficulties in accessing email, not willful non-compliance (c) The trust has consistently maintained transparency in its operations.

Jafari Welfare Trust vs. CIT(E) Asst. Year –N.A. - 2– 1.4 The learned CIT(Exemption) erred in rejecting the application solely on the ground of non-submission of a note on activities and other unspecified details, without: (a) Considering the documents already submitted with the Form 10AB application (b) Examining the objects and activities mentioned in the trust deed (c) Verifying the financial statements and other documents on record 1.5 The learned CIT(Exemption) failed to appreciate that mere non-submission of additional information within the short time provided does not justify rejection of approval under section 80G, especially when provisional registration was already granted earlier. It is therefore prayed that the appellant may please granted approval u/s 80G in the interest of natural justice considering the eccentric facts of the case.”

3.

The brief facts of the case are that the assessee filed an application for grant of approval under Section 80G of the Act on 23.06.2024. The CIT(E) issued notices dated 03.10.2024 and 07.11.2024 requesting certain details / documents from the applicant trust. However, the assessee / applicant trust did not respond to notices issued by CIT(E) and accordingly the application was rejected by CIT(E) with the following observations:

“7. As discussed above, the applicant/assesee has failed to file documentary evidences to enable me to satisfy about: (A) the genuineness of activities of such institution or fund; and (B) the fulfillment of all the conditions laid down in clauses (i) to (v) of section 80G(5) of the act.

8.

In view of the above, the present application filed in Form No. 10AB for approval u/s 80G(5)(iii) of the Act is rejected and your provisional approval also stands cancelled.”

4.

The assessee / applicant trust is in appeal before us against the order passed by Ld. CIT(E), rejecting grant of approval under Section 80G of the Act. Before us, the Counsel for the assessee submitted that the trustees of the applicant trust are senior citizen with limited familiarity with digital communications and accordingly, they became aware of the notices sent by CIT(E) only after considerable delay, causing inadvertent non- appearance before the Ld. CIT(E). However, it was submitted that the Jafari Welfare Trust vs. CIT(E) Asst. Year –N.A. - 3– documents requested in the notices issued by Ld. CIT(E) were already attached in the original Form 10AB application which contained certain information like Trust Deed, Audit Report and other supporting documentation. The Counsel for the assessee submitted that if given an opportunity of hearing, the assessee / applicant trust shall diligently appear before the CIT(E) and respond to all notices issued by Ld. CIT(E).

5.

On going through the facts of the instant case and the submission of the Counsel for the assessee, in the interest of justice, the matter is restored to the file of Ld. CIT(E) for de-novo consideration. However, since there has been admitted non-compliance on part of the assessee / applicant trust, a cost of Rs. 5,000/- is directed to be imposed on the assessee / applicant trust for the purposes of setting-aside the matter to the file of Ld. CIT(E), to be paid to the Prime Minister Relief Fund.

6.

In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 25/04/2025

Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 25/04/2025 TANMAY, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,

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