SHRUT RATNAKAR,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 2176/AHD/2024Status: DisposedITAT Ahmedabad18 March 2025Bench: DR. BRR KUMAR (Vice President), MS SUCHITRA KAMBLE (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that remanding the matter to the Ld. CIT(E) for fresh consideration of the application, taking into account the assessee's explanations and submissions, would serve the interests of justice.

What were the facts?

The assessee-trust applied for registration under Section 80G(5)(iv) of the Act. The CIT(E) observed that some objects of the trust were religious and not exclusively charitable. A show-cause notice was issued, but the assessee failed to comply, leading to the rejection of the application.

What were the issues?

Whether the CIT(E) erred in rejecting the application for registration under Section 80G(5)(iv) on grounds of non-compliance with the show-cause notice without considering the merits.

Which sections of the Income-tax Act were involved?

Section 80G(5)(iv),Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: DR. BRR KUMAR & MS SUCHITRA KAMBLE

For Appellant: Smt Preyashi Tated, AR
For Respondent: Shri R.N Dsouza, CIT.DR
Hearing: 13.03.2025Pronounced: 18.03.2025

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & MS SUCHITRA KAMBLE, JUDICIAL MEMBER (Assessment Year: NA) Shrut Ratnakar, Vs. The Commissioner of 803, Sarap, Income Tax(Exemption) Nr. Navjivan Press, Ahmedabad. Ahmedabad-380014. [PAN No.AACTS2576B] (Appellant) .. (Respondent) Appellant by : Smt Preyashi Tated, AR Respondent by: Shri R.N Dsouza, CIT.DR Date of Hearing 13.03.2025 Date of Pronouncement 18.03.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT:

This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad vide order dated 17.11.2024.

2.

The assessee has raised the following grounds of appeal

1.

The order passed by the Ld.CIT(E) rejecting the Application filed U/s.80G(5)(iv) of the act in against law, equity & justice.

2. The CIT(Exemption) has erred in law and on facts by rejecting the application 80G as show cause notice was dated 07.11.2024 Asst.Year NA - 2– and respond it on or before 14.11.2014 while passed order of rejection on 07.11.2014 3. The Ld.CIT€ has erred in law and facts in rejecting the application filed u/s.80G(5)(iv) of the act on ground of non- compliance of show cause notice. 4. The appellant Craves liberty to add, amends, alter or modify all or any grounds of appeal before final appeal.

3. At the outset, we find that assessee-trust was asked to submit certain details /information /clarification regarding application for registration u/s.80G (5)(iv) of the Act. The Ld.CIT(E) on perusal of the trust deed observed that the object mentioned at serial no.1,4,5,6 & 7 are religious in nature and not exclusively charitable in nature as per section 80G(5) of the Act. Further, Ld.CIT(A) issued show-cause notice to the assessee to explain the reason for rejection of application. In pursuance to the same, the assessee failed to comply to the show notice and the Ld.CIT(E) dismissed the appeal of the assessee on the basis of material available on record.

4.

Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.

5.

At the outset, the Ld. Counsel for the assessee submitted that the Ld.CIT(E) has rejected the application filed U/s.80G(5)(iv) of the Act on ground of non-compliance of show cause notice. Therefore, prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Having considered Asst.Year NA - 3– the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the explanation/submissions filed by the assessee.

6.

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

This Order pronounced in Open Court on 18.03.2025

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