SRI GURUNARASIMHA CHARITABLE TRUST,UDUPI vs. INCOME-TAX OFFICER (EXEMPTIONS), WARD-1, MANGALURU, MANGALURU

The assessee has raised the following grounds of appeal:-

Brief facts of the case are that the assessee Trust was granted provisional registration under sub-clause (vi) of clause (ac) of sub- section (1) of section 12A on 24.9.2021 vide Unique registration

Aggrieved by the order of ld. CIT (Exemptions) dated 19.8.2025, the assessee has filed the present appeal before this Tribunal.

Before us, the ld. A.R. of the assessee vehemently submitted that the ld. CIT (Exemptions) vide notice dated 12.7.2025 directed the assessee trust to explain the case to ITO (Exemptions), Ward-1 Mangalore and accordingly the assessee submitted all the details and documents on 11.8.2025 before the ITO (Exemptions), Mangaluru as per the directions of notice dated 12.7.2025. Further, ld. A.R. of the assessee submitted that before cancelling the provisional registration, the ld. CIT (Exemptions) should have granted final opportunity before mechanically rejecting the application for registration.

We have heard the rival submissions and perused the materials available on record. On going through the order of ld. CIT (Exemptions), we observed that the ld. CIT (Exemptions) rejected the application in form 10AB dated 25.2.2025 filed for registration u/s 12AB of the Act solely on the ground that assessee did not respond to any of the notices issued and failed to appear before the ld. CIT (Exemptions) and submit all the necessary documents/details as required for registration u/s 12AB of the Act. The contention of the assessee is as per the directions of the notice dated 12.7.2025 the assessee appeared before the ITO (Exemptions), Ward-1, Mangaluru and submitted all the documents/details as called for. We agree with the contentions of ld. CIT (Exemptions) that the assessee is required to submit necessary documents to prove the genuineness of the activities of the trust or institution and also the compliance of such requirements of any other law as are material for the purpose of achieving its object. This being so, in the interest of justice, equity and fair play and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue in dispute to the file of ld. CIT (Exemptions) to decide afresh in accordance with law. It is also directed that instead of directing the assessee to explain the case before ITO (Exemptions), the ld. CIT (Exemptions) shall call for such documents or information or make such inquiry as he thinks necessary in order to satisfy himself about the genuineness of the activity of the trust and compliance of such requirements of any other law as are material for the purpose of achieving its objects instead of directing the assessee to explain the case before the ITO (Exemptions). The assessee is also directed to produce all the

In the result, appeal filed by the assessee is partly allowed for statistical purposes.

The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order