SURTI KSHATRIYA PANCH AND ITS MANDIR,SURAT vs. ITO EXEMPTION WARD, SURAT, SURAT

We have heard learned Representatives of both sides and carefully considered their submissions.

Ld. AR for assessee drew us to the impugned order and submitted that the Ld. CIT(E) has passed the same while granting only one opportunity to assessee on 20.02.2026, which the assessee could not avail. It was further submitted that the impugned order has been passed without examining assessee’s application on merits. It was also emphasised that the registration u/s 12A/12AB is fundamental and necessary for the existence and functioning of assessee who is engaged in charitable/religious activities for the benefit of the public. It was further submitted that the assessee is ready with the requisite details and documents for making an effective representation before Ld. CIT(E). It was also assured that if one more opportunity is given, the assessee shall fully co-operate and make effective representation before Ld. CIT(E). Accordingly, it was prayed that in the interest of justice and fair play, the present matter be restored to the file of Ld. CIT(E) for a meritorious adjudication after affording reasonable opportunity of hearing to assessee.

Per contra, Ld. DR for revenue submitted that there is no infirmity in the order passed by Ld. CIT(E). He submitted that the assessee voluntarily filed application to Ld. CIT(E) seeking registration u/s 12A/12AB, therefore it was incumbent upon assessee to stay diligent and make representation before Ld. CIT(E) when called upon. He submitted that the Ld. CIT(E) has given opportunity to assessee but the assessee failed to avail the same. Therefore, the Ld. CIT(E) could not get necessary satisfaction for granting registration due to the failure of assessee. He, therefore, submitted that rejection of application by Ld. CIT(E) was fully justified and the impugned order be upheld.

We have considered the rival submissions of both sides and carefully perused the case file including the impugned order passed by Ld. CIT(E). We find that that the rejection of the application by Ld. CIT(E) is primarily on account of non-compliance by the assessee in furnishing the requisite details and documents. At the same time, on a perusal of Column No. 10 of the impugned order (main body of Form No. 10AD) passed by Ld. CIT(E), the Ld. CIT(E) appears to have granted only one opportunity to assessee, thus the assessee did not get sufficient opportunities. Considering the nature of proceeding relating to grant of registration u/s 12A/12AB, which has significant consequences for the assessee and in the interest of justice and fair play and also having regard to the fact that the remanding of this matter to the file of Ld. CIT(Exemption) would not cause any prejudice to the revenue/respondent, we are of the view that the assessee should be granted one more effective opportunity to substantiate its application. Accordingly, we set aside the impugned order and restore this matter to the file of the Ld. CIT(E) for a fresh consideration. The Ld. CIT(E) shall examine the application afresh after providing reasonable and adequate opportunities of being heard to assessee. The assessee is also directed to make representation to Ld. CIT(E) and furnish all requisite details and documents without seeking unnecessary adjournments failing which the Ld. CIT(E) shall be at liberty to pass order in accordance with law. Ordered accordingly.

Accordingly, this appeal is allowed for statistical purposes.

The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Surat 5. Guard File By Order,