SHRI KADADEWARMATH OF YADOOR,YADUR vs. CIT(EXEMPTION)BANGALORE, CIT (EXEMPTION)

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ITA 2730/BANG/2025Status: DisposedITAT Bangalore17 August 2026AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the principles of natural justice were violated as the assessee was not afforded a reasonable opportunity of being heard. Therefore, the matter was remitted back to the CIT (Exemptions) for a fresh decision.

What were the facts?

The assessee's application for registration under Section 12AB of the Income Tax Act was rejected by the CIT (Exemptions) due to non-response to notices and failure to appear. The assessee contended that they were not given a fair opportunity to be heard and that the rejection was based solely on non-response.

What were the issues?

Whether the rejection of registration under Section 12AB without affording a fair opportunity of hearing violates the principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

Hearing: 04.06.2026Pronounced: 17.08.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of the ld.CIT (Exemptions), Bangalore dated 01.09.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1080240362 (1) rejecting the application for the registration u/s 12AB of the Income Tax Act, 1961 (in short “The Act”).

2.

The assessee has raised the following grounds of appeal:- The appellant respectfully submits the following grounds of appeal against the order rejecting registration u/s 12AB:

l. That the learned CIT (Exemptions) erred both in law and on facts in rejecting the application for registration u/s 12AB without affording a fair and reasonable opportunity of being heard. 2. That the order passed is in violation of the principles of natural justice, as the appellant was prevented by reasonable cause from appearing on the specified dates.

ITA No.2730/Bang/2025 Shri Kadadewarmath of Yadoor, Belagavi Page 2 of 3

3.

That the rejection is solely based on non-response, without examining the genuineness of the appellant's religious and charitable objectives or activities.

4.

That the appellant trust is engaged in genuine religious and charitable activities, including conducting poojas, spiritual events, and providing support to devotees and the local community.

5.

That the appellant is now in possession of all the relevant documents and details to establish the genuineness of its activities and compliance with law.

6.

That the learned CIT (Exemptions) ought to have considered the purpose and spirit of section 12AB, which aims to ensure registration of genuine charitable and religious institutions.

7.

That the appellant, therefore, prays for setting aside the rejection order and for grant of registration u/s 12AB, or in the alternative, that the matter be restored to the CIT (Exemptions) for reconsideration after affording an effective opportunity of hearing.

3.

None appeared on behalf of the assessee Trust.

4.

The ld. CIT-DR drew our attention to the order of the ld. CIT(E), Bengaluru & submitted that the ld. CIT(E) rejected the application for the registration u/s 12AB of the Act as the assessee had not responded to any of the notices issued & failed to appear and submit all the necessary documents/ details as required for registration u/s 12AB of the Act.

5.

Per Contra, the assessee in its grounds of appeal has stated that the ld. CIT(E) grossly erred both in law and on facts in rejecting the application for registration without affording a fair and reasonable opportunity of being heard which is a gross violation of principles of natural justice.

ITA No.2730/Bang/2025 Shri Kadadewarmath of Yadoor, Belagavi Page 3 of 3 6. This being so, in the interest of justice, equity and fair play, we deem it fit and proper to remit the entire issue of Registration u/s 12AB of the Act to the file of the ld. CIT(E) to decide afresh in accordance with law. Needless to say, reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to submit all the necessary details/ documents/financials/ report or as may be required by the ld. CIT(E) for granting registration u/s. 12AB of the Act. We make it clear that in case of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly.

7.

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

Order pronounced in the open court on 17th Aug, 2026

Sd/- Sd/- (Waseem Ahmed) (Keshav Dubey) Accountant Member Judicial Member

Bangalore, Dated 17th Aug, 2026. VG/SPS

Copy to:

1.

The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order

Asst. Registrar, ITAT, Bangalore.

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