SHREE KUTTCH KATHIYAWAD GUJARAT GARASHIYA ASSOCIATION,RAJKOT vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

1. This appeal is filed by the Assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad, [in short “CIT(E)”] dated 02.09.2024 in the proceeding u/s. 12A(1)(ac)(iii) of the Income Tax Act.

There was a delay of 422 days in filing of this appeal. The assessee has filed a condonation application explaining the reason for delay. It has been submitted that the matter regarding Income Tax proceeding was being handled by one of the trustee, Shri Pravinsinh U. Jadeja, who had expired on 09.09.2024. Due to his death there was no one to look after Shree Kuttch Kathiyawad Gujarat Garashiya Association Vs. CIT(E) 2 the Income-tax affairs and the order of the Ld. CIT(E) was not received physically. The assessee came to know about the rejection of the application on receiving the intimation u/s. 143(1) for A.Y. 2024-25 on 03.01.2026 wherein the claim of exemption u/s. 11 of the Act was denied. Thereafter, the present appeal was immediately filed. The assessee has explained that the delay in filing of appeal was not intentional but due to unavoidable circumstances. We have considered the submissions of the assessee. A copy of the death certificate of Shri Pravinsinh U. Jadeja, the trustee of the assessee is also brought on record. Considering the explanation of the assessee, the delay in filing the present appeal is condoned.

The brief facts of the case are that the assessee had filed an application for registration u/s. 12A(1)(ac)(iii) of the Act. The Ld. CIT(E) had required the assessee to furnish certain details and documents which was not complied. Since the CIT(E) was not satisfied about the genuineness of the activities of the trust the application for registration u/s. 12A(1)(ac)(iii) was rejected vide the impugned order.

The assessee is now in appeal before us. The following grounds have been taken in this appeal:

The order u/s. 12A(1)(ac)(ii) of the Act is bad in law.

Per contra, Shri Alpesh parmar, The Ld. CIT-DR had no objection if the matter was set aside to the file of Ld. CIT(E) for allowing another opportunity to the assessee.

We have considered the request of the assessee. It is true that no compliance was made before the Ld. CIT(E) in spite of two opportunities provided by him. This lapse has been explained due to ill health and subsequent death of the trustee Shri Pravinsinh U. Jadeja, who was handling this matter. We, therefore, deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to allow another opportunity to the assessee to furnish the details and documents as required and thereafter re-adjudicate the application of the assessee regarding registration u/s. 12A(1)(ac)(iii) of the Act. The assessee is also directed to make compliance before the Ld. CIT(E) and produce the details and documents as required by him.

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