ROTARY INTERNATIONAL DISTRICT 306 TRUST,VALSAD vs. CIT(EXEMPTION), AHMEDABAD

These appeals challenge the respective orders passed by Ld. CIT (Exemption), as detailed in the above table, by which the assessee’s applications for grant of registration u/s 12A/12AB and approval u/s 80G(5) of Income-tax Act, 1961 [“the Act”] have been rejected.

Since all these appeals involve identical issues; substantially similar facts; common submissions have been advanced by the parties; and require identical adjudication, they were heard together and are being disposed of by this consolidated order for the sake of convenience. We first take up the matters of section 12A/12AB and thereafter the matters of section 80G(5).

In these matters, the Ld. CIT(Exemption) has passed identically styled/worded orders, the only variation is in the dates of opportunities granted to respective assessees. Therefore, at the outset, we would like to re- produce the “Annexure” forming part of the order passed by Ld. CIT(Exemption) in the first-appeal being ITA No.745/SRT/2026 for reference:

During hearings before us, the Ld. ARs appearing for the respective assessees referred to the impugned orders and advanced almost similar submissions and contentions. It was submitted that the Ld. CIT(Exemption) has passed ex-parte order while granting only one effective opportunity to the assessee, which the assessee could not avail. It was further submitted that the impugned orders have been passed without examining the applications on merits. It was also emphasised that the registration u/s 12A/12AB is fundamental and necessary for the existence and functioning of assessees who are engaged in charitable/religious activities for the benefit of the public. It was further submitted that the assessees are ready with the requisite details and documents for making an effective representation before Ld. CIT(Exemption). It was also assured that if one more opportunity is given, the assesees shall fully co-operate and make effective representation before Ld. CIT(Exemption). Accordingly, it was prayed that in the interest of justice and fair play, the present matters be restored to the file of Ld. CIT(Exemption) for a meritorious adjudication after affording reasonable opportunity of hearing to assessees.

Per contra, Ld. DR for revenue submitted that there is no infirmity in the orders passed by Ld. CIT(Exemption). He submitted that the assessees voluntarily filed applications to Ld. CIT(Exemption) seeking registration u/s 12A/12AB, therefore it was incumbent upon them to stay diligent and make representation before Ld. CIT(Exemption) when called upon. He submitted that the Ld. CIT(Exemption) has given opportunity to assessees but the assessees failed to avail the same. Therefore, the Ld. CIT(Exemption) could

We have considered the rival submissions of both sides and carefully perused the case files including the impugned orders passed by Ld. CIT(Exemption). We find that that the rejection of the applications by Ld. CIT(Exemption) are primarily on account of non-compliances by the assessees in furnishing the requisite details and documents. At the same time, on a perusal of Column No. 10 of the impugned orders (main body of Form No. 10AD) passed by Ld. CIT(Exemption), the Ld. CIT(Exemption) appears to have not afforded sufficient opportunities to assessees. Considering the nature of proceeding relating to grant of registration u/s 12A/12AB, which has significant consequences for the assessees and in the interest of justice and fair play and also having regard to the fact that the remanding of these matters to the file of Ld. CIT(Exemption) would not cause any prejudice to the revenue/respondent, we are of the view that the assessees should be granted one more effective opportunity to substantiate their applications. Accordingly, we set aside the impugned orders and restore these matters to the file of the Ld. CIT(Exemption) for a fresh consideration. The Ld. CIT(Exemption) shall examine the applications afresh after providing reasonable and adequate opportunities of being heard to assessees. The assessees are also directed to make representation to Ld. CIT(Exemption) and furnish all requisite details and documents including those prescribed under Rule 17A(2) without seeking unnecessary

Accordingly, these appeals are allowed for statistical purposes.

In these matters also, the Ld. CIT(Exemption) has passed identically styled/worded orders, the only variation is in the dates of opportunities granted to respective assessees. Therefore, at the outset, we would like to re- produce the “Annexure” forming part of the order passed by Ld. CIT(Exemption) in the first-appeal being ITA No. 746/SRT/2026 for reference:

During hearings before us, the Ld. ARs appearing for the respective assessees submitted that the Ld. CIT(Exemption) has rejected assessee’s applications for grant of approvals u/s 80G(5) precisely on the footing that the assessees do not have valid registration u/s 12A/12AB. Thus, the impugned orders passed by Ld. CIT(Exemption) are consequential to the matters of section 12A/12AB. The Ld. ARs therefore prayed that when the matters of section 12A/12AB are restored to the file of Ld. CIT(Exemption), as a consequence these matters of section 80G(5) ought to be remanded to the Ld. CIT(Exemption) for a meritorious adjudication after affording reasonable opportunity of hearing to assessees.

Per contra, Ld. DR for revenue submitted that there is no infirmity in the impugned orders. He submitted that when the assessees do not have valid registration u/s 12A/12AB, the Ld. CIT(Exemption) has validly rejected assessee’s applications for approval u/s 80G(5). He requested to uphold the impugned orders.

We have considered the rival submissions of both sides and carefully perused the case files including the impugned orders passed by Ld. CIT(Exemption). We find that the rejection of the applications for approval u/s 80G(5) is consequential to the rejection of the applications for registration u/s 12A/12AB. Since, in earlier part of this order, we have already set aside the orders passed by the Ld. CIT(Exemption) in respect of registration u/s 12A/12AB and restored those matters to Ld.

Accordingly, these appeals are also allowed for statistical purposes.

In the result, all appeals are allowed for statistical purposes.