RAJULA DELVADIYA KAPOL MAHAJAN GNATI,AMRELI vs. ITO EXEMPTION WD 2 RAJKOT, RAJKOT

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ITA 972/RJT/2026Status: DisposedITAT Rajkot17 August 20263 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal restored the matter to the CIT(E) for fresh consideration, directing the assessee to furnish all required details and cooperate. This was done in the interest of justice and fair play, acknowledging the non-compliance by the assessee.

What were the facts?

The assessee applied for fresh registration under Section 12AB, but the CIT(E) rejected the application due to non-furnishing of required details and documents. The assessee failed to comply with notices and provide supporting evidence for their activities and objects.

What were the issues?

Whether the CIT(E) was justified in rejecting the registration application for non-compliance, and if the matter should be remanded for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Gaurang Khakhar, Ld. AR
For Respondent: Shri Ravinder Sindhu, Ld. CIT(DR)
Hearing: 12/08/2026Pronounced: 17/08/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 972/RJT/2026 [ �नधा�रण वष�/Assessment Year: - ] Rajula Delvadiya Kapol Mahajan Gnati ITO Exemption, Wd 2, Rajula, Opp. Dena Bank Rajula City, It-Office, New Aayakar Vs. Amreli-365560, Bhawan,Vatiaka, Rajkot-360001, Gujarat Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AABTR2643F (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Gaurang Khakhar, Ld. AR Respondent by : Shri Ravinder Sindhu, Ld. CIT(DR) Date of Hearing : 12/08/2026 Date of Pronouncement : 17/08/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: This appeal has been preferred by the assessee against the order dated 25.06.2026 passed by the learned Commissioner of Income-tax (Exemption) [hereinafter referred to as “CIT(E)”], whereby the assessee’s application seeking approval under Section 12AB(I)(b)(ii) of the Income-tax Act, 1961 was rejected under the provisions of the first proviso to the relevant clause, on the ground that the assessee failed to furnish the requisite details and documentary evidence called for during the course of proceedings.

ITA No. 972/RJT/2026 Rajula Delvadiya Kapol Mahajan Gnati 02. Brief facts of the case are that the assessee filed an application in Form No. 10AB seeking fresh registration under section 12A/12AB of the Income-tax Act, 1961. The Ld. CIT(E), Ahmedabad issued notices from time to time calling upon the assessee to furnish the requisite details, documents and evidences in support of the application. However, the assessee failed to comply with the notices and did not furnish the documents prescribed under Rule 17A(2) of the Income-tax Rules or seek any adjournment. In the absence of the requisite details and supporting evidences, the Ld. CIT(E) was not satisfied regarding the genuineness of the activities of the assessee, their conformity with the stated objects, and compliance with other applicable laws. Accordingly, the application in Form No. 10AB was rejected and the provisional registration, if any granted earlier was cancelled.

3.

Aggrieved by the said order, the assessee preferred an appeal before the Tribunal. During the course of hearing, the Ld. AR submitted that the assessee could not properly comply with the notices issued by the Ld. CIT(E) and requested that the matter be restored to the file of the Ld. CIT(E) for fresh adjudication after providing an adequate opportunity of being heard.

4.

On the other hand, the Ld. DR had no serious objection to the restoration of the matter.

5.

We, after considering the submissions of both the parties and the fact that the impugned order was passed due to non-compliance by the assessee, we find that in the interest of justice and fair play, restored the matter to the file of the Ld. CIT(E) for fresh consideration in accordance with law, with a direction to the assessee to furnish all requisite details and documents and cooperate in

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ITA No. 972/RJT/2026 Rajula Delvadiya Kapol Mahajan Gnati

the proceedings. Accordingly, the appeal of the assesse is allowed for statistical purposes.

6.

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

Order pronounced in the open court on this 17th day of August, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 17/08/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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