SHREE SAMAST DHIVAR SAMAJ VIKAS TRUST,SURAT vs. CIT(EXEMPTION), SURAT

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ITA 530/SRT/2026Status: DisposedITAT Surat15 July 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in passing an ex-parte order without providing a reasonable opportunity for the assessee to be heard. The matter was set aside to the CIT(E) for fresh adjudication.

What were the facts?

The assessee trust applied for renewal of registration under Section 12A/12AB and approval under Section 80G. The CIT(E) rejected both applications due to the assessee's non-compliance with notices and lack of proper opportunity for being heard.

What were the issues?

Whether the CIT(E) erred in rejecting the applications without providing adequate opportunity of being heard and whether the matter should be remanded for fresh consideration.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, SURAT

Before: SHRI T. R SENTHIL KUMAR & SHRI NARENDRA PRASAD SINHA

For Appellant: Ms. Chaitali Shah, CA
For Respondent: Shri Mukesh Jain, CIT-DR
Hearing: 20.05.2026Pronounced: 15.07.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

These two appeals are filed by the assessee against the separate orders of Commissioner of Income Tax (Exemption), Ahmedabad, [in short “CIT(E)”], both dated 09.03.2026 in the proceeding u/s 12A/12AB and u/s. 80G(5) of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed an application in Form No. 10AB for renewal of registration u/s. 12A(ac)(ii) of the Act. The Ld. CIT(E) had called for certain details from the assessee in order to examine the genuineness of the activities of the trust and to satisfy himself that the activities were in consonance with the objects of

ITA Nos. 530 & 531/Srt/2026 Shree Samast Dhivar Samaj vikas Trust Vs. CIT(E) 2 the trust. As no compliance was made by the assessee, the Ld. CIT(E) had rejected the application of the assessee vide the impugned order. Further in the absence of any valid registration u/s. 12A/12AB of the Act, the application for approval u/s. 80G(5) of the Act, was also rejected.

ITA Nos. 530/SRT/2026 3. Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal:

1.

On the facts and circumstances of the case, as well as law on the subject, the Ld. CIT(E), has erred in passing ex-parte order without giving reasonable and sufficient opportunity of being heard. 2. Even otherwise on the facts and in circumstances of the case as well as law on the subject, the Ld. CIT(E) has erred in rejecting the application of assessee for registration u/s. 12AB of the I.T. Act, 1961. 3. It is therefore, prayed that the order of CIT(E), passed u/s. 12AB of the I.T. Act, 1961 may be set aside and he may be directed to pass fresh order granting approval u/s. 12AB. 4. Appellant craves leave to add, alter or delete any ground either before or in the course of hearing of the appeal.

4.

Ms. Chaitali Shah, the Ld. AR of the assessee submitted that the Ld. CIT(E) had passed the order without taking into account substantial details and documents and without giving proper opportunity of being heard to the assesse. The Ld. AR requested that the assessee may be allowed another opportunity of being heard by setting aside the matter to the file of the Ld. CIT(E).

5.

Per contra, Shri Mukesh Jain, the Ld. CIT-DR, supported the order of Ld. CIT(E). He, however, had no objection if the matter was set aside the file of the Ld. CIT(E) for allowing another opportunity to the assessee.

ITA Nos. 530 & 531/Srt/2026 Shree Samast Dhivar Samaj vikas Trust Vs. CIT(E) 3 6. We have carefully considered the facts of the case and the material available on record. It is observed that the application of the assessee- trust for registration under section 12A of the Income-tax Act, 1961 came to be rejected by the Ld. CIT(E) primarily on account of non-compliance with the notice issued seeking certain documents and clarifications. From the records, it is evident that a single opportunity of being heard was granted to the assessee. The interest of natural justice cannot be served by rejecting the application of the assessee by giving only one opportunity. Considering that the assessee is a charitable trust seeking registration under the provisions of the Act and that the issue relates to the examination of its objects and activities, we are of the considered view that one more opportunity deserves to be afforded to the assessee to place the requisite material before the Ld. CIT(E). The principles of natural justice require that a reasonable and effective opportunity of being heard be granted before an adverse decision is taken. In the facts and circumstances of the present case, and without expressing any opinion on the merits of the application, we deem it appropriate, in the interest of justice, to set aside the impugned order and restore the matter to the file of the Ld. CIT(E) for fresh adjudication. The assessee shall furnish all the documents, explanations and evidences as may be called for by the Ld. CIT(E) and shall fully cooperate in the proceedings. The Ld. CIT(E) shall afford adequate opportunity of being heard to the assessee and thereafter pass a speaking order in accordance with law. Accordingly, the impugned order is set aside and the matter is restored to the file of the Ld. CIT(E) for de novo consideration. The grounds raised by the assessee are allowed for statistical purposes.

ITA Nos. 530 & 531/Srt/2026 Shree Samast Dhivar Samaj vikas Trust Vs. CIT(E) 4 7. In the result, the appeal of the assessee is allowed for statistical purpose.

ITA No. 531/Srt/2026

8.

The application for approval u/s. 80G(5) of the Act was rejected by the Ld. CIT(E) for the reason that the assessee was not having a valid registration u/s. 12A/12AB of the Act. Since the matter regarding registration u/s. 12A of the Act has been set aside to the Ld. CIT(E), the present appeal in respect of approval u/s. 80G(5) of the Act is also set aside to the file of Ld.CIT(E), who should re-adjudicate the issue of grant of approval u/s. 80G(5) of the Act, after first deciding the issue of registration u/s. 12A/12AB of the Act.

9.

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

10.

In the final result, both the appeals of the assessee are allowed for statistical purpose.

Order pronounced in the Court on 15/07/2026 at Ahmedabad.

Sd/- Sd/- (T R SETHIL KUMAR) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 15th July, 2026 Neelesh, Sr. P.S (True Copy) आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : अ�ेिषत 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड� फाईल /Guard file.

ITA Nos. 530 & 531/Srt/2026 Shree Samast Dhivar Samaj vikas Trust Vs. CIT(E) 5

आदेशानुसार/BY ORDER, आदेशानुसार आदेशानुसार आदेशानुसार पंजीकार (Dy./Asstt.Registrar) उप उप/सहायक उप उप सहायक सहायक पंजीकार सहायक पंजीकार पंजीकार आयकर अपीलीय आयकर अपीलीय अिधकरण अिधकरण, अहमदाबाद अहमदाबाद / ITAT, Ahmedabad आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण अहमदाबाद अहमदाबाद

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