SRI SARVA DHARMA SAMANVAYA TRUST,CHIKKABALAPUR vs. CIT EXEMPTIONS , BANGALORE

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ITA 2544/BANG/2025Status: DisposedITAT Bangalore29 June 2026AY 2025-266 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal is hearing the appeal against the order of the CIT (Exemptions) rejecting the registration application. The grounds of appeal raise issues regarding the CIT's understanding of financial statements, comparison with bank accounts, and cancellation of exemption renewal.

What were the facts?

The assessee, Sri Sarva Dharma Samanvaya Trust, applied for registration under Section 12AB of the Income Tax Act, 1961. The CIT (Exemptions) rejected the application.

What were the issues?

Whether the CIT (Exemptions) erred in rejecting the registration application under Section 12AB by misinterpreting financial statements and bank account details, and whether principles of natural justice were violated.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

Hearing: 02.04.2026Pronounced: 29.06.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of the ld. CIT (Exemptions), Bangalore dated 10.09.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2025- 26/1080563445(1) rejecting the registration u/s. 12AB of the Income Tax Act, 1961 (in short “the Act”).

2.

The assessee has raised the following grounds of appeal:-

ITA No.2544/Bang/2025 Sri Sarva Dharma Samanvaya Trust, Chikkaballapur Page 2 of 6

1.

The order of the ld. AO is opposed to law, and circumstances of the case. The order is passed against the principle of natural justice and thus liable to be quashed. The ld. AO has erred in understanding the financial statements and comparing it with the bank account. 2. The ld. AO has erred in cancelling the application for the renewal of exemption under section 12AA. The ld. AO has not considered the submissions made during the course of assessment. The ld. AO has erred in forming his opinion that the financial statements do not match with the bank account. 3. Your appellant craves leave to add, alter, or take up any other ground before your good self during the course of hearing.”

3.

The brief facts of the case are that the assessee Trust is constituted by way of deed of Trust declared and executed on 11th March 1992 and duly registered before the Sub-Registrar, Chintamani vide registration no.185/1991-92. The Trust is created for public purposes and the objects of the Trust are:-

1.

To make donations to various funds or institutions or Government or local authority recognized under section 80G(5) of the Income Tax Act, 1961.

2.

To serve the cause of welfare and all-round development of children. (a) By the establishment and running of schools, hostels, and Balavikas Centres on the Principles, of Bhagwan Sri Sathya Sai Educational Philosophy.

(b) Printing and publication of books, journals and disseminating knowledge with a view to include the spirituality and building up of character.

ITA No.2544/Bang/2025 Sri Sarva Dharma Samanvaya Trust, Chikkaballapur Page 3 of 6 (c) To hold lectures seminars, study circles, periodical courses and conferences to enlighten people about child welfare.

(d) By the establishment and running of Hospitals, Clinics, rehabilitations centres, Pathological and Clinical labouraties.

3.

To render service to poor, destitute and sick children,

(a) By the establishment of Orphanage, destitute house and the like. (b) To award freeships. Scholarships and other assistance to students. (c) By providing the free medical aid to poor children and physically and mentally handicapped.

4.

To assist and support institutions or truste having objects similar to the foregoing.

5.

To make donations for constructions of places of worship and to make donations for renovation of places of worship recognized by the Central Government under Section 80G(5) of the Income Tax Act, 1961.

It is submitted that the assessee was granted provisional registration under sub clause (vi) of clause (ac) of sub-section (1) of section 12A on 07/04/2023 vide Unique Registration No. (URN)- AAATS8010JE20221 effective from AY 2023-24 to AY 2025-26. Further, the assessee Trust was also granted approval under clause (i) of first proviso to sub-section (5) of section 80G of the Act on 29/03/2022 vide Unique Registration No. (URN)- AAATS8010JF20104 effective from AY 2022-23 to AY 2026-27. Thereafter, the assessee Trust applied for final registration in Form

ITA No.2544/Bang/2025 Sri Sarva Dharma Samanvaya Trust, Chikkaballapur Page 4 of 6 No.10AB under sub clause (iii) of clause (ac) of sub-section(1) of section 12A of the Act on 14/03/2025. On receipt of the application, the ld. CIT(E) granted opportunity of being heard vide notice dated 07/08/2025 and another vide SCN dated 18/08/2025, however the assessee did not respond to any of the notices. The ld. CIT(E) was of the opinion that as per the provisions of the Act, 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 objects. In the present case as the assessee did not responded to any of the notices issued and failed to appear before the ld. CIT(E) and submit all the necessary documents/details as required for registration u/s 12AB of the Act and hence the application in Form No. 10AB dated 14/03/2025 filed for registration u/s 12AB of the Act was rejected & registration cancelled.

4.

Before us, the ld. A.R. of the assessee vehemently submitted that the assessee trust had in fact appeared before the AO but since the AO was absent on that day and accordingly the assessee had no option but to file all the relevant details as called for in Tappal section. The ld. A.R of the assessee accordingly prayed that in the interest of justice & equity one more opportunity may be granted before the ld.CIT(E) and also undertakes to file all the relevant details required for registration under section 12AB of the Act.

5.

The ld. D.R. on the other hand supported the order of the ld.CIT(E), however fairly conceded that the case may be remitted back to the file of ld. CIT(Exemptions) as the assessee could not represent its case.

ITA No.2544/Bang/2025 Sri Sarva Dharma Samanvaya Trust, Chikkaballapur Page 5 of 6

6.

We have heard the rival submissions and perused the materials available on record. On perusal of the order of ld CIT(Exemption), we observed that the sole reason for denying the registration u/s 12AB of the Act was that the assessee could not responded to any of the notices issued and failed to appear before the ld. CIT(E) and submit all the necessary documents/details as required for registration u/s 12AB of the Act. We completely agree with the view of the ld. CIT(E) that for granting registration u/s 12AB of the Act, the assessee is required to submit all the 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 objects. Before us, the ld. AR of the assessee vehemently submitted that the assessee society infact appeared before the AO & filed all the relevant details in tappal section as the AO was absent on that day. This being so, in the interest of justice, equity & fairplay and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the case to the file of ld. CIT(Exemptions) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to produce all the relevant documents/evidences/ information/accounts/report/ certificates/Deed as may be required by the ld. CIT(Exemption) for granting registration u/s 12AB of the Act. We make it clear that in case of further default, the assessee society shall not be entitled for any leniency. It is ordered accordingly.

ITA No.2544/Bang/2025 Sri Sarva Dharma Samanvaya Trust, Chikkaballapur Page 6 of 6

7.

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

Order pronounced in the open court on 29th June, 2026

Sd/- Sd/- (Waseem Ahmed) (Keshav Dubey) Accountant Member Judicial Member

Bangalore, Dated 29th June, 2026. VG/SPS

Copy to:

1.

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

Asst. Registrar, ITAT, Bangalore.

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