REDDIYAR TRUST,TRICHY vs. ITO, EXEMPTION WARD, TRCHY

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ITA 2654/CHNY/2026Status: DisposedITAT Chennai06 August 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order and restored the matter for fresh consideration. The CIT(E) was directed to provide the assessee with a reasonable opportunity of hearing and dispose of the application on merits.

What were the facts?

The assessee, a trust, applied for registration under Section 12AB of the Income Tax Act. The CIT(E) rejected the application due to non-submission of required documents.

What were the issues?

Whether the CIT(E) rightly rejected the 12AB registration application for non-submission of documents when they were allegedly submitted for a simultaneous 80G application.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G,Section 12AA,Section 12A(1)(ac)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI INTURI RAMA RAO

Hearing: 05.08.2026Pronounced: 06.08.2026

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Chennai dated 14.03.2026, rejecting Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 (hereinafter the ‘Act’).

- 2 - ITA No.2654/CHNY/2026 Reddiyar Trust 2. Brief facts of the case are as follows:- The assessee is a trust. It filed an application in Form No.10AB on 29.09.2025 seeking registration u/s.12AB of the Act. During the course of proceedings, the CIT(E) issued notices calling for certain details and documents. Since the assessee did not furnish the documents sought, the CIT(E) rejected the application for registration u/s.12AB of the Act on the ground of non-submission of the requisite documents.

3.

Aggrieved, the assessee has filed the present appeal before the Tribunal. Before us, the Ld. AR submitted that the assessee is a Public Charitable Trust constituted by a Trust Deed dated 29.01.2016 and was granted registration u/s.12AA of the Act on 30.12.2016. Thereafter, pursuant to the new registration regime, Form No.10AC granting registration u/s.12A(1)(ac) of the Act was issued on 24.09.2021. On expiry of the said registration, the assessee filed Form No.10AB seeking regular registration u/s.12AB of the Act and also filed a simultaneous application for approval u/s.80G of the Act. The Ld. AR submitted that in response to the notices issued during the proceedings u/s.80G of the Act, the assessee furnished all the requisite documents, including the Trust Deed, Supplementary Deed, registration certificates, financial statements, audit reports and note on activities. Since the applications under sections 12AB and 80G of the Act, were pending simultaneously before the same authority, the

- 3 - ITA No.2654/CHNY/2026 Reddiyar Trust assessee bona fide believed that the documents furnished in the 80G of the Act, proceedings would also be considered for the application u/s.12AB of the Act. The Ld. AR contended that the CIT(E) rejected the application u/s.12AB on the ground of non-furnishing of documents, though all the relevant documents were already available on the Department's records and there was no change in the objects or activities of the Trust. He submitted that the rejection was purely on technical grounds without examining the application on merits and in violation of the principles of natural justice. He, therefore, prayed that the impugned order be set aside and the matter be restored to the file of the CIT(E) for fresh consideration on merits after affording reasonable opportunity of hearing to the assessee.

4.

The Ld.DR relied on the order of the CIT(E).

5.

We have heard the rival submissions and perused the material available on record. It is an admitted fact that the assessee was earlier granted registration u/s.12AA of the Act and thereafter migrated to the new registration regime by issuance of Form No.10AC u/s.12A(1)(ac)(i) of the Act. The application filed in Form No.10AB seeking regular registration u/s.12AB of the Act came to be rejected by the CIT(E) on the ground that the requisite documents were not furnished. The contention of the assessee is that all the relevant documents, including the Trust Deed, Supplementary Deed,

- 4 - ITA No.2654/CHNY/2026 Reddiyar Trust registration certificates, financial statements, audit reports and note on activities, had already been furnished during the simultaneous proceedings u/s.80G before the same authority and were also available on the records of the Department. In the interest of justice, we deem it appropriate to set aside the impugned order and restore the matter to the file of the CIT(E). The CIT(E) is directed to afford reasonable opportunity of hearing to the assessee and thereafter dispose of the application for registration u/s.12AB afresh in accordance with law. The assessee is directed to extend full co-operation and furnish the requisite details as may be called for by the CIT(E). It is ordered accordingly.

7.

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

Order pronounced in the open court on 6th August, 2026 at Chennai.

Sd/- Sd/- (जॉज� जॉज� के) (इंटूर� रामा राव) (INTURI RAMA RAO) (GEORGE GEORGE K) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 6th August, 2026 RSR, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Salem 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order

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