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

PDF · subscribers
ITA 1000/AHD/2024Status: DisposedITAT Ahmedabad31 December 2024AY 2023-24Bench: SHRI TR SENTHIL KUMAR (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the CIT(Exemption) and allowed the assessee another opportunity to be heard, subject to payment of a nominal cost. The CIT(E) was also directed to consider a coordinate bench's decision regarding the applicability of Section 13(1)(b) at the registration stage.

What were the facts?

The assessee trust applied for registration under section 12A(1)(ac)(iii). The CIT(Exemption) rejected the application as the trust's objectives were for a particular religious community and the assessee failed to comply with notices and provide requested documents.

What were the issues?

Whether the CIT(Exemption) erred in rejecting the registration application for a trust with objectives for a specific community and for non-compliance. Whether Section 13(1)(b) is applicable at the stage of granting registration.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 13(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD

Before: SHRI TR SENTHIL KUMAR & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Prakash D Shah, AR
For Respondent: Shri AP Singh, CIT.DR
Hearing: 18/12/2024Pronounced: 31/12/2024
1.

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.

2 2. The brief facts of the case are that the assessee is a trust and had filed an application on 29.09.2023 for registration of trust u/s.12A(1)(ac)(iii) of the Act. The Ld. CIT(E) had called for certain details vide notice dated 21.11.2023 and 22.12.2023, in response to which certain details and documents were filed by the assessee on 08.01.2024. The Ld. CIT(E) had noticed that the objectives of the trust were for benefit of particular religious community or caste i.e. Gaud Samaj. In this regard, the Ld. CIT(E), had issued a show-cause notice to the assessee on 14.03.2024, which was not complied by the assessee and no details/explanations were filed. Therefore, the Ld. CIT(E) passed the impugned order and rejected the application of the assessee. The provisional registration allowed to the assessee trust earlier, was also cancelled.

3.

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.

1. That the Ld. CIT (Exemption), Ahmedabad has erred in law and facts by rejecting an application for granting approval under the provision of section 12A(1)(ac)(iii) of the Act and therefore you Honor is requested to direct the CIT(Exemption) to grant registration under section 12A(1)(ac)(iii) of the Act.

2.

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

4.

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).

5.

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.

6.

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.

7.

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

Order pronounced in the Open Court on 31st December, 2024 at Ahmedabad.

More judgments on Section 12A(1)(ac)(iii)

All 1,616 judgments and leading authorities on Section 12A(1)(ac)(iii) →

Latest GST High Court judgments

Search GST case law →