KARMA GERCHEN TRUST,KANGRA vs. CIT(EXEMPTIONS), CHANDIGARH

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ITA 1804/CHANDI/2025Status: DisposedITAT Chandigarh03 August 2026AY 2025-264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) failed to provide a sufficient opportunity for the assessee to be heard and present evidence. Therefore, the matters were remanded back to the CIT(Exemptions) for fresh adjudication.

What were the facts?

The assessee's applications for registration under Section 12AB and approval under Section 80G were rejected by the CIT(Exemptions). The assessee contended that no show cause notice was issued, preventing them from presenting their case and evidence.

What were the issues?

Whether the CIT(Exemptions) properly afforded the assessee an adequate opportunity of being heard before rejecting their applications for registration and approval.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

ITA No. 1803 /Chd/2025
ITA No. 1804 /Chd/2025

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अिधकरण,च�ीगढ़ �ायपीठ “A” , च�ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: HYBRID MODE �ी लिलत कुमार, �ाियक सद� एवं �ी मनोज कुमार अ�वाल, लेखा सद� BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 1803 /Chd/2025 U/s 80G बनाम Karma Garchen Trust, The CIT(Exemptions), Gyuto Monastry, Sidhbari Chandigarh Sidhpur B.O. Prem Nagar, Kangra HP 176057 �ायी लेखा सं./PAN NO: AQBTK2394L अपीलाथ�/Appellant ��थ�/Respondent & आयकर अपील सं./ ITA No. 1804 /Chd/2025 U/s 12AB(1)(b)(ii) बनाम Karma Garchen Trust, The CIT(Exemptions), Gyuto Monastry, Sidhbari Chandigarh Sidhpur B.O. Prem Nagar, Kangra HP 176057 �ायी लेखा सं./PAN NO: AQBTK2394L अपीलाथ�/Appellant ��थ�/Respondent

िनधा�रती की ओर से/Assessee by : Sh. Aman Parthi, Advocate राज� की ओर से/ Revenue by : Smt. Jaishree Sharma, CIT DR सुनवाई की तारीख/Date of Hearing : 23.07.2026 उदघोषणा की तारीख/Date of Pronouncement : 03.08.2026 आदेश/Order PER LALIET KUMAR, J.M: The captioned appeals have been preferred by the assessee against the separate orders dated 15.10.2025 and 31.10.2025 for

2 1803 & 1804-Chd-2025 A.Y. 2026-27 and 2025-26 respectively passed by the learned Commissioner of Income Tax (Exemptions), Chandigarh, whereby the applications filed by the assessee in Form No.10AB for Registration u/s 12AB and approval 80G were rejected.

2.

At the very outset, the Ld. AR for the Assessee had submitted that no show cause notice has been given by the Ld. CIT(E) before passing the order and as such there was no occasion for the Assessee to appear argue the matter, submit the evidence to prove the genuineness and charitable nature of the activities. It was submitted that if one more opportunity is given then the Assessee shall be able to prove the requirement of law. 3. The Ld. CIT DR, relied upon the orders of the Ld. CIT(E) and submitted that the Assessee does not deserve any further opportunity. 4. We have considered the rival submissions and perused the material available on record. We find that it is incumbent upon the Ld. CIT(E) to provide a sufficient and reasonable opportunity to the Assessee so that the Assessee can argue the matter and make the submissions before the CIT(E) and it is the solemn duty of the CIT(E) to take the decision based on the documentary evidence furnished by the Assessee. If the information were collected by the CIT(E) at the back of the Assessee then it is necessary to contradict that

3 1803 & 1804-Chd-2025 information to the Assessee so that Assessee can supply the requisite supporting documents, its reply and putforward its point of view. This has not been done; therefore, we deem it appropriate to remand the matters back to the CIT(E) for fresh adjudication. Accordingly, the matter are remanded back to the file of the Ld. CIT(E) to decide the appeals of the Assessee on merit afresh in accordance with law after granting adequate and effective opportunity of hearing. The learned CIT(E) shall consider all the documentary evidences and submissions that may be furnished by the assessee and thereafter pass speaking and reasoned orders on merits.

5.

The assessee is also directed to extend full cooperation in the fresh proceedings and shall furnish all documents, explanations and evidences as may be called for by the learned CIT(E) without seeking unnecessary adjournments. It is made clear that we have not expressed any opinion on the merits of the claim, and all issues are left open for adjudication by the learned CIT(E). 6. In the result, both the appeal of the assessee are allowed for statistical purposes. Order pronounced in the open court on 03.08.2026

Sd/- Sd/- (MANOJ KUMAR AGGARWAL ) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER rkk

4 1803 & 1804-Chd-2025 आदेश की �ितिलिप अ�ेिषत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��थ�/ The Respondent 3. आयकर आयु�/ CIT 4. 5. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�ीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

सहायक पंजीकार/ Assistant Registrar

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