SHREE SAMAJ SEVAK MAHAVIRDAL,JAMNAGAR vs. CIT(EXEMPTION), AHMEDABAD
Facts
The assessee, Shree Samaj Sevak Mahavirdal, filed an application for registration under section 80G(5)(iii) of the Income Tax Act, 1961. The CIT(E) rejected the application and cancelled the provisional approval. The assessee appealed the CIT(E)'s order.
Held
The Tribunal noted that the CIT(E)'s order was ex-parte and the assessee claimed that due to the age and illiteracy of its members, they could not understand the notice and comply with the order. The Tribunal held that in the interest of justice, an opportunity should be given to the assessee to present their case.
Key Issues
Whether the rejection of registration under section 80G was justified, and if an opportunity should be granted to the assessee to present their case.
Sections Cited
80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI, AM. &
IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, AM. & DINESH MOHAN SINHA, JM आयकरअपीलसं./ITA No. 892/RJT/2024 (�नधा�रणवष� / Assessment Year: (2025-26) (Hybrid Hearing) Shree Samaj Sevak Mahavirdal Vs. CIT(Exemption) Dhanbai No Delo, Shakmarket Road, Room No. 609, Floor No. 6, Nr. Girdhari Temple, Aayakar Bhavan (Vejalpur), Jamnagar - 361001 Prahalad nagar, Road, Ahmedabad - 380015 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAATS9848L (Appellant) (Respondent)
Appellant by : Shri Chetan Agarwal, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR Date of Hearing : 27/01/2025 Date of Pronouncement : 29/01/2025 आदेश / O R D E R PER DINESH MOHAN SINHA, JM:
This appeal is filed by the Assessee as against the Rejection order dated 21.11.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying Registration under section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Grounds of appeal raised by the assessee are as followes:
ITA No. 892/RJT/2024 A. Y.2025-26 Shri Samaj Sevak Mahavirdal
1) The Ld. CIT(E) erred in law as well as on fact in rejecting application for registration u/s. 80G of the Act.
Facts of the case that the assessee filed an application for approval of the trust/institution/fund under clause (iii) of first proviso to sub-section (5) of section 80G of the I.T. Act, 1961. Assessee filed an application electronically on 21.11.2024 to the Ld. CIT (Exemption), Ahmedabad/2024-25/12AA/16095. Notices were issued by the Ld. CIT(E) on 12.09.2021 & 29.10.2024 requesting to furnished all documents. The applicant neither filed any submission nor any adjournment in the case. In our view of the above circumstances, the present application filed in 10B for approval u/s. 80G(5)(iii) of the Act is rejected and your provisional approval also stands cancelled.
That the assessee has filed an appeal to challenge the validity of order of the Ld. CIT(E) before us on 27.11.2024.
During the course of hearing, Ld. AR submitted that assessee could not comply with the order because of the member of the Trust Society are old and illiterate. Hence, assessee could not understand about the Gevity of the notice. Ld. AR has requested for an opportunity may kindly be granted to present his case before the Ld. CIT(E).
Ld. DR on the contrary has no objection. However, Ld. DR relied on the judgment of Ld. CIT(E).
We have heard both the parties and perused the material available on record. We noted that the order of Ld. CIT(E) has ex- parte order and before passing the order the Ld. CIT(E) has issued noticed to the assessee. That the order of the Ld. CIT(E) does not talk about the service of notice upon the assessee.
ITA No. 892/RJT/2024 A. Y.2025-26 Shri Samaj Sevak Mahavirdal
We further noted that it is older trust society seeking for the registration. The Trust society is running Muktidam (Shamshan). Since, the Ld. AR prayed for an opportunity to appear and filed the documents in support of the application before the Ld. CIT(E), Ahmedabad.
We are of the view that in the interest of justice, an opportunity should be given to the assessee to present his case before the Ld. CIT(E). We set aside the order of Ld. CIT(E) and remit the matter back to the file of Ld. CIT(E) for fresh adjudication on merit after giving due opportunity to the assessee of being heard.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 29/01/2025
Sd/- Sd/- (Dr. A.L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER Rajkot �दनांक/ Date: /01/2025 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order
Assistant Registrar/Sr. PS/PS ITAT, Rajkot
