Adtalish Gam Kadava Patidar Samaj Vs CIT (Exemption) (ITAT Ahmedabad)
Four-Day SCN Not Enough: Caste-Based Object Issue to Be Re-Examined After Proper Hearing- ITAT Restores 80G Application
Assessee Trust filed Form 10AB on 27.06.2024 seeking 80G(5)(iii) approval, having earlier been granted provisional 80G(5)(iv) registration. CIT(E) observed that Trust’s objects benefit only the Kadava Patidar community, which in his view violates Section 80G(5)(iii) requiring benefit to the public at large. A show cause notice dated 29.11.2024 granted only four days for reply. Assessee sought adjournment, but before it could respond, CIT(E) passed an ex-parte order on 19.12.2024 rejecting the application.
Before Tribunal, Assessee argued that adequate & reasonable opportunity was not granted & that the rejection was based solely on one object clause without examining the Trust’s other objects or activities. Revenue did not object to a remand.
Tribunal held that CIT(E) allowed only a single, very short opportunity & proceeded ex-parte despite the request for time. In the interest of natural justice, one more opportunity ought to have been provided. Accordingly, Tribunal set aside the order and restored the matter to CIT(E) for fresh adjudication, directing him to give proper opportunity to explain the Trust’s objects & satisfy conditions under Section 80G(5). Appeal allowed for statistical purposes.
