GURUSHRI UMEDPURI GUNDIKHAD KADVA PATIDAR CHARITABLE TRUST,MEHSANA vs. CIT (EXEMPTION), AHMEDABAD

The brief facts of the case are that the assessee had filed an application for registration of the trust u/s.12A(1)(ac)(iii) of the Act on 28.10.2023, which was rejected by the Ld. CIT(E) for the ITA No. 983/Ahd/2024 [Gurushri Umedpuri Gundikhad Kadva Patidar Charitable Trust vs. CIT(E) ] - 2 –

Aggrieved with the order of the Ld. CIT(E), the assessee has filed the present appeal. The following grounds have been taken in this appeal:

On the facts and circumstances of the case and in law, the learned CIT(EXEMPTION), Ahmedabad has erred in rejecting application for registration of the trust u/s 12AB of the Income Tax Act, 1961. 3. On the facts and circumstances of the case and in law, the learned CIT(EXEMPTION), Ahmedabad has erred in not granting registration u/s 12A of the Act to the Appellant.

The appellant craves leave to add, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal.”

Shri Dhrunal Bhatt, Ld. AR appearing for the assessee fairly conceded that no compliance could be made before the Ld. CIT(E) and the details and documentary evidences as called for by him were not furnished. He, therefore, requested that another opportunity may be provided to the assessee to produce the documents as required and for this purpose, he requested that the matter may be set aside to the file of the Ld. CIT(E).

Per contra, Dr. Darsi Suman Ratnam, the Ld. CIT. DR supported the order of the Ld. CIT(E). He submitted that the ITA No. 983/Ahd/2024 [Gurushri Umedpuri Gundikhad Kadva Patidar Charitable Trust vs. CIT(E) ] - 3 –

We have carefully considered the rival submissions. As per the provision of Section 12AB of the Act, the Commissioner had to satisfy himself about the genuineness of the activities of the trust and also to verify that the activities as carried out were in consonance with the objects of the trust. Accordingly, the Ld. CIT(E) had called for the details/documents in this regard vide notice dated 15.12.2023 and 09.03.2024. The assessee neither filed the required details nor any adjournment for sought on any occasion. Under the circumstances, the Ld. CIT(E) had no alternative but to reject the application of the assessee for the registration of the trust. The assessee has not explained the reason for non-compliance before the Ld. CIT(E). Since, the assessee has failed to furnish any explanation for the non- compliance before the Ld. CIT(E), we deem it appropriate to impose a cost of Rs.5,000/- (Rupees Five Thousand only) on the assessee, which should be paid to the Income Tax Department within two weeks of receipt of this order. Further, considering the request of the ld. AR that the assessee is engaged in charitable activities and in the interest of justice, we deem it proper to set aside the matter to the Ld. CIT(E) with a direction to allow another opportunity of being heard to the assessee. The assessee is also directed to make compliance before the Ld. CIT(E) and not to seek adjournment without any pressing reason. In case, the ITA No. 983/Ahd/2024 [Gurushri Umedpuri Gundikhad Kadva Patidar Charitable Trust vs. CIT(E) ] - 4 –

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