SHRI SITARAM GAUSHALA AND CHARITABLE TRUST,SURENDRANAGAR vs. THE CIT(EXEMPTION), AHMEDABAD

ITA Nos.1128&1129/Ahd/2024 & 790&791/Ahd/2024 A.Y. N.A. 2 Sr. of Order Delay in Remarks No. the under filing Assessee Section & appeal Date before ITAT 1. 790/Ahd/2024 Shri Kaliya 12AB NIL Ex-parte Thaker Ni 26.02.2024 order Jagya Gaushala Trust 2. 791/Ahd/2024 Shri Kaliya 80G NIL Late Thaker Ni 06.03.2024 filing of Jagya Form Gaushala 10AB Trust 3. 1128/Ahd/2024 Shri 12AB 41 days Wrong Sitaram 16.02.2024 provision Gaushala of Law And Charitable Trust 4. 1129/Ahd/2024 Shri 80G 24 days Late Sitaram 04.03.2024 filing of Gaushala Form And 10AB Charitable Trust 2. The Registry has noted that there are delays in filing two appeals before this Tribunal. Respective Assessee Trusts have filed separate Notarized Affidavits explaining the delay in filing the appeal as follows:- “That I am not at all conversant with the Income Tax matters nor do I operate computers or log into the Income Tax Portal. Our Trust has never faced Income Tax litigation in the past. It was only recently in the month of April, 2024, that I came to know about rejection of Exemption / Registration u/s 10(23C) of the Act in the case of one Trust of Anand in case of Mahek Charitable Trust. Then, immediately, we contacted our CA and inquired about the status of our Trust, and came to know that our application u/s 12AB is rejected by CIT(Exemption), Ahmedabad vide order dated 19/02/2024. Thereupon, we were advised that we have to file appeal before Hon’ble ITAT against the said order, and we entrusted the matter to Advocate at Ahmedabad to prepare and file the appeal before Hon’ble ITAT, Ahmedabad Bench.

The Ld. Counsel Mr. Mehul K. Patel appearing for the assessees brought to our notice the various Circulars issued by CBDT and the latest Circular No. 7/2024 dated 25.04.2024, wherein the Board under Section 119 of the Act, with a view to avoid and mitigate genuine hardship in late filing of the applications, the Board has extended time till 30.06.2024 for registration under Section 12AA and Section 80G(5) of the Act. Therefore, pleaded to condone the delay in filing the appeals by the respective assessee trust. Further, the above Assessee Trusts are located in small and remote places of Surendra Nagar Gujarat and they could not comply with the e-filing procedure and the delay may be condoned. Ld. CIT-D.R. Shri Kamlesh Makwana appearing for the Revenue has no serious objection in condoning the delay. Thus, the delays in filing the appeals before this Tribunal by the Assessee Trusts are hereby condoned.

Ld. Counsel submitted the assessee was provided hearing notices by email by Ld. Commissioner of Income Tax (Exemption), the assessee neither filed any submissions nor sought for any adjournment. Therefore, the application for registration under 12AA of the Act was being rejected by passing ex-parte order. The Ld. Counsel further submitted though the Assessee Trust filed its application within the due date prescribed under the Act, it could not response to the email notices issued to the Assessee Trust. However, the Ld. Counsel under taken that it has all relevant materials and evidences in support of its claim for final registration under Section 12AB of the Act and the Assessee Trust was already &1129/Ahd/2024 & 790&791/Ahd/2024 A.Y. N.A. 4 granted provisional registration by Ld. C.I.T(E), therefore, in the interest of justice prayed that one more opportunity be given to the Assessee Trust for final registration under the Act.

Ld. CIT-D.R. has no serious objection in setting-aside the matter to the file of Ld. CIT(E) but with a condition that the Assessee Trust should make use of this final opportunity and produce all necessary documents and details before CIT(E).

Heard rival submissions, and perused the materials available on record. We hereby set-aside in back to the file of Ld. CIT(E) to give one more opportunity of hearing to the Assessee Trust. Needless to say the Assessee Trust should furnish all the relevant material, document and the record for final registration of the Trust under the Act and Ld. CIT(E) pass orders in accordance with law.

In the result, the appeal filed by the Assessee Trust in is allowed for statistical purposes.

Remaining appeals namely 1128/Ahd/2024 and 1129/Ahd/2024 are late filing of Form 10AB and quoting wrong provision of law by the respective Assessee Trusts for registration under Section 80G(5) of the Act. As per the CBDT Circular No. 7/2024 dated 25.04.2024 the same are covered by Para 4.1 of the Circular which reads as under:-

In the result, the appeals filed by the Assessee Trusts in 1128/Ahd/2024 and 1129/Ahd/2024 are allowed for statistical purposes.