FATEHABAD CRICKET ASSOCIATION,FATEHABAD vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH

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ITA 60/CHANDI/2026Status: DisposedITAT Chandigarh04 August 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order and restored the issue for fresh adjudication. It directed the CIT(E) to provide the assessee with an opportunity to plead and prove its case, emphasizing principles of natural justice.

What were the facts?

The assessee's application for registration under Section 12A(1)(ac)(ii) was rejected by the CIT(E) because the bank statement indicated activities commenced earlier than stated by the assessee. The CIT(E) also noted that provisional registration could not have been granted under such circumstances.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without affording a proper opportunity of hearing to the assessee and based solely on bank statements.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12A(1)(ac)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application as filed by the assessee seeking registration u/s 12A(1)(ac)(ii) vide impugned order dated 11.12.2025 of Ld. Commissioner of Income Tax (Exemption), Chandigarh [CIT(E)], the assessee is in further appeal before us. 2. The assessee, it its reply dated 27.10.2025 before Ld. CIT(E), stated that its activities commenced on 01.03.2025. However, Ld. CIT(E) observed that the bank statement revealed that assessee’s

activities commenced on 18.11.2024. The assessee was granted provisional registration u/s 12A(1)(ac)(vi) on 15-12-2014 for AYs 2025- 26 to 2027-28. Accordingly, the activities had already commenced when it applied for provisional registration. On these facts, the provisional registration could not have been granted to the assessee. Therefore, the present regular registration application was also rejected. Aggrieved, the assessee is in further appeal before us. 3. The Ld. AR stated that substantial charitable activities started much later which could be demonstrated by the assessee. It has also been stated that no opportunity of hearing was granted to the assessee before forming such an opinion. Accordingly, Ld. AR has sought remand back of the registration which has been opposed by Ld. CIT- DR. 4. Keeping in mind the principles of natural justice and in view of the fact that the assessee is a charitable trust, we accept the prayer of Ld. AR. Apparently, the issue has not been confronted to the assessee and an opinion has been formed merely on bank statement. On these facts, we set aside the impugned order and restore the issue of impugned registration back to the file of Ld. CIT(E) for fresh adjudication with a direction to the assessee to plead and prove its case forthwith. 5. The appeal stands allowed for statistical purposes. Order pronounced on 04th August, 2026

-Sd- -Sd- (RAJESH DAMODARLAL SHARMA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER

AS Dated: 04.08.2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

ASSISTANT REGISTRAR

ITAT CHANDIGARH

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