Shri Mahatma Gandhi and Sardar… vs CIT | s.12A, 12AB | ITAT Surat 2025

Assessee represented by Shri Mayur Bhagatwala, CA Department represented by Shri Ravi Kant Gupta, CIT-DR Date of Institution of Appeal 04/12/2024 Date of hearing 13/02/2025 Date of pronouncement 13/02/2025 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER:

1. 1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Exemptions), Ahmedabad [in short, the ld. CIT(E)], dated 22/10/2024.

2. Rival submission of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the assessee could not furnished their reply in response to notice mentioned in para 10 of impugned order. The assessee is having valid registration under Section 12A/12AB and his eligible for approval under Section 80G(5) as assessee fulfil all requisite conditions for Mahatma Gandhi & Sardar Vallabhbhai Patel Seva Trust availing such approval. At the time of filing application, for approval under Section 80G(5), the assessee furnished all required details. The ld. AR of the assessee submits that application of assessee was rejected for the want of submission. The ld. AR of the assessee submits that he has good case on merit and is likely to succeed if he is given one more opportunity to make reply/submission before the ld. CIT(E). He undertakes on behalf of assessee to be more vigilant in future.

On the other hand, the learned Commissioner of Income Tax- Departmental Representative (ld. CIT-DR) for the revenue submits the assessee has as not responded to the show cause notices issued by ld. CIT(E) to substantiate their claim of approval under Section 80G(5).

We have considered the submissions of both the parties and perused the orders of the lower authorities carefully. There is no dispute that the assessee was having provisional registration under section 12A/12AB and applied for approval under Section 80G(5). The ld. CIT(E) dismissed / rejected the application by taking view that assessee has not filed required details in response to show cause notice issued to them. Considering the fact that the application of assessee was not considered on merit and the assessee is having registration under Section 12A/12AB, therefore, we deem it appropriate to restore the matter back to the file of the ld. CIT(E) to reconsider it and pass order afresh in accordance with law. Needless to direct that before passing the order, Mahatma Gandhi & Sardar Vallabhbhai Patel Seva Trust the ld CIT(E) shall grant opportunity of hearing to the assessee. The assessee is also directed to furnish complete details to prove its object and activity and make all compliances as desired by the ld. CIT(E). In the result, the grounds of appeal

SHRI MAHATMA GANDHI AND SARDAR VALLABHBHAI PATEL SEVA TRUST,SURAT vs. CIT(EXEMPTION), AHMEDABAD