SAMAST SHRIGAUD SAMAJ GUJARAT,AHMEDABAD vs. COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

This appeal is filed by the assessee against the order dated 27.03.2024 passed by the Ld. Commissioner of Income Tax (Exemption) [In short CIT(Exemption)], Ahmedabad.

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

That your appellant craves liberty to add, amend alter and delete any grounds of appeal before the final hearing.

Shri Prakash D Shah, Ld. AR appearing for the assessee fairly conceded that assessee did not submit the audited accounts for F.Y 2021-2022 and 2022- 2023 and the note on the activity of the assessee as called for by the Ld. CIT(E) was also not furnished. He submitted that the Ld. CIT(E) had rejected the application for the reason that Trust was registered for a particular caste and, therefore, there was violation of section 13(1)(b) of the Act. According to the 3 Ld. AR the applicability of section 13(1)(b) of the Act was not required to be considered at the time of grant of registration. In this regard he relied upon the decision of Co-ordinate Bench of this Tribunal in the case of Shree Naminath Shwetamber Mutipujak Tapagachh Jain Religious Trust in dated 20.09.2024. The Ld. AR, therefore, requested that the matter may be set-aside to the file of the Ld. CIT(E), with a direction to give another opportunity to the assessee. He further submitted that the details/information as required will be furnished before the Ld. CIT(E).

Per Contra Shri AP Singh, Ld. CIT.DR submitted that the assessee did not comply to the show-cause notice dated 14.03.2024 issued by the Ld. CIT(E) and, therefore, he had rightly rejected the registration application of the assessee.

We have carefully considered the rival submissions. The assessee has not explained the reason for non-compliance before the Ld. CIT(E) and the non-submission of the documents/explanation as called for by him. In the absence of any reasonable explanation for non-compliance before the Ld. CIT(E), we deem it proper to impose a nominal cost of Rs.5,000/- (Rupees Five Thousand only) on the assessee which should be paid to Income-tax Department. At the same time, in the interest of justice, we deem it proper to set-aside the matter to the file of the Ld. CIT(E) for allowing another opportunity of being heard to the assessee. The Ld. CIT(E) will also consider the decision of the Co-ordinate Bench of this Tribunal in the case of Shree Naminath Shwetamber Mutipujak Tapagachh Jain Religious Trust (Supra) regarding the non-applicability of section 13(1)(b) of the Act at the time of 4 grant of registration. The Ld. CIT(E) will proceed in the matter after verifying that the cost imposed on the assessee is duly paid.

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