SAHAJANAND EDUCATION AND CHARITABLE TRUST,GANDHINAGAR vs. THE CIT(EXEMPTION), AHMEDABAD
Facts
The assessee, Sahajanand Education And Charitable Trust, filed appeals against the orders of the CIT(E) rejecting their applications for registration under sections 12AB and 80G. The rejection was primarily due to the trust's failure to respond to notices and provide necessary details, despite being given multiple opportunities.
Held
The Tribunal noted the assessee's plea of compelling circumstances for non-response and the need for another opportunity. The Tribunal held that remanding the matter to the CIT(E) for a fresh consideration of the application, along with the assessee's submissions, would serve the interests of justice.
Key Issues
Whether the rejection of registration applications under section 12AB and 80G was justified, or if the assessee should be granted another opportunity to submit their documentation and explanations.
Sections Cited
12AB, 12A(1)(ac)(iii), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE- & Ms. SUCHITRA KAMBLE
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:
- The captioned appeals have been filed by the assessee against the separate orders dated 17.08.2023 & 25.12.2024 passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad (hereinafter referred to as “the Ld.CIT(E)”).
The assessee has raised the following grounds of appeal:
The Ld. CIT-Exemption, Ahmedabad has erred in rejecting the application for registration of the trust u/s 12AB of the IT Act on the ground that appellant failed to respond the various notices. However, the fact is that the appellant trust could not respond the various
I.T.A. Nos.2391-2392/Ahd/2025 - 2– notices due to compelling circumstances. The appellant, therefore, prays that it may please be afforded one more opportunity to produce all the relevant documents and make submissions before the Ld. CIT- Exemption, Ahmedabad.
The appellant craves leave to add, alter or delete any ground either before or in the course of hearing of the appeal.
The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. The Ld. CIT(E) rejected the application for registration u/s.12A(1)(ac)(iii) of the I.T Act, 1961, since the assessee-trust remained non compliant and failed to submit any details/explanation and genuineness of the activities of the Trust.
Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.
At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld.CIT(E) rejected the application of the assessee on the ground that that the assessee-trust remained non compliant and failed to submit any substantial documents. Therefore, the Ld.Counsel prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.
I.T.A. Nos.2391-2392/Ahd/2025 - 3–
Since we have remanded the issue to the Ld.CIT(E) in ITA No.2391/Ahd/2025 against rejecting of application u/s.12A(1)(ac)(iii) of the Act, we also set-aside the issue for approval of registration u/s.80G(5)(iii) of the Act in ITA No.2392/Ahd/2025 for fresh consideration.
In the result, both the appeals of the assessee are allowed for statistical purposes.
The order is pronounced in the open Court on 27.03.2026. (SUCHITRA KAMBLE) VICE-PRESIDENT () Ahmedabad; Dated 27.03.2026 MV आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant
""थ" / The Respondent. 3. संबंिधत आयकर आयु" / Concerned CIT 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file.
आदेशानुसार/ BY ORDER,सहायक पंजीकार (Dy./Asstt.
