GUJARAT CSR AUTHORITY,GSFC BUILDING vs. THE CIT (EXEMPTION), AHMEDABAD., AAYAKAR BHAWAN (VEJALPUR)

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ITA 1220/AHD/2026Status: DisposedITAT Ahmedabad29 June 20266 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal decided that the CIT(E) had erred in rejecting the application solely on the ground of non-compliance without considering the existing registration and renewal. The matter was remanded back to the CIT(E) for fresh consideration.

What were the facts?

The assessee applied for renewal of registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application due to non-compliance by the assessee with requests for details regarding the genuineness of its activities. Consequently, the application for approval under Section 80G(5) was also rejected.

What were the issues?

Whether the CIT(E) was justified in rejecting the renewal of registration and approval under Section 80G(5) due to non-compliance, without considering the assessee's prior registration and renewal status.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G(5),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: MS SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Sanjay R Shah, AR
For Respondent: Shri R P Rastogi, CIT-DR
Hearing: 20.05.2026Pronounced: 29.06.2026

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 08.03.2026 in the proceeding u/s 12A and u/s. 80G(5) of the Income Tax 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(1)(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. 1219 & 1220/Ahd/2026 Gujarat CSR Authority Vs. CIT (Exemption) 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 and the provisional registration granted earlier was also cancelled. Further in the absence of any valid registration u/s. 12A of the Act, the application for approval u/s. 80G(5) of the Act, was also rejected. Aggrieved with the orders of the Ld. CIT(E), the assessee is in appeal before us.

ITA No. 1219/Ahd/2026

3.

The following grounds have been taken in this appeal:

1.

The Ld. Commissioner of Income Tax (Exemption), Ahmedabad has gravely erred in law and on facts and circumstances of the case by passing order rejecting the application filed in Form No. 10AB for registration u/s. 12AB, on the ground that in spite of notices issued from time to time, the Appellant has neither filed any submissions/details/documents nor sought any adjournment in this case, so as to enable the Ld. CIT(E) to arrive at the satisfaction about genuineness of the activities of the Appellant and about the activities of the Appellant are in consonance with the objects of the Appellant and also that the other laws material for the purpose of achieving objects are complied with by the Appellant. 2. The Ld. Commissioner of Income Tax (Exemption), Ahmedabad has gravely erred in law as well as on facts by not appreciating and considering that the Appellant has already been granted the registration u/s.12A vide order dated 03.10.2016 with effect from A.Y.2015-16 which has been renewed by order dated 28.05.2021 in Form No. 10AD for A.Y.202-23 to A.Y2026-27 and there is not at all any modification in the objects of the Appellant or in any facts and circumstances of the case of the Appellant and also there is not at all any adverse finding recorded regarding the objects and genuineness of activities of the Appellant. 3. The Ld. Commissioner of Income Tax (Exemption), Ahmedabad has also erred in law and on facts by not taking into consideration the documents/details comprising of copies of Memorandum of Association, Certificate of Registration with the Asst. Registrar of Societies, Ahmedabad, Certificate of Registration in Form No.10AC for registration u/s 12A(1)(ac) (1) as well as Balance Sheets and Income and Expenditure Accounts for financial years ending on 31.03.2023 and 31.03.2024, submitted with application in Form No. 10AB 4. The Ld. Commissioner of Income Tax (Exemption), Ahmedabad has also erred in law as well as on facts by not appreciating and considering very important aspect from enclosed Memorandum of Association, that the

ITA Nos. 1219 & 1220/Ahd/2026 Gujarat CSR Authority Vs. CIT (Exemption) 3

Appellant has been constituted by the Government of Gujarat, with main objective of managing, coordinating Government Public Sector undertakings/corporations/organizations and related monitoring and implementing various CSR funds received from Central/Stan of Gujarat are holding membership in the Governing Body of the Appellant by virtue CSR activities in the Gujarat State and therefore, senior officers of the Governmen of their post held by them in the Government of Gujarat. 5. The Ld. Commissioner of Income Tax (Exemption), Ahmedabad has gravely erred in law and on facts and circumstances of the case by passing order rejecting the application filed in Form No. 10AB for registration u/s 12AB, on the ground that though notices were issued from time to time, the Appellant has not sought any adjournment in this case and as such totally ignored the fact that the Appellant has received only one notice being DIN & Notice No. ITBA/EXEM/F/EXEM43/2025-26/1086030280(1) dated 14.02.2026 fixing hearing 25.02.2026 in respect of both the proceedings for registration u/s 12A as well as for approval u/s.80G and in response, the Appellant has duly submitted two applications seeking short adjournments, but unfortunately, the Appellant has not received any communication granting or rejecting request for adjournment and it clearly appears that requests for adjournment, appears to have been over looked and not taken into consideration, before passing rejection order 6. The Ld. Commissioner of Income Tax (Exemption), Ahmedabad has erred in law as well as on facts and circumstances of the case by directing the Appellant to compute tax liability under section 115TD of I.T. Act, 1961 read with Rule 17CB of the I.T. Rules, 1962 and report the same in return of Income and also to pay the tax so computed within timeline provided under section 115TD(5) of LT.Act, 1961, even though the order rejecting the application in Form No.10AB for registration u/s 12AB is liable to be the subject matter of appeal before the higher appellate authorities. 7. The Ld. Commissioner of Income Tax (Exemption), Ahmedabad has erred in law as well as on facts and circumstances of the case by passing order rejecting the application filed in Form No. 10AB for registration u/s 12AB, without providing to the Appellant any adequate, reasonable and proper opportunity of being heard in the interest of natural and substantial justice. 8. The Appellant prays that the highly disputable and unsustainable order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad may kindly be quashed and the Ld. Commissioner of Income Tax (Exemption), Ahmedabad may kindly be directed to grant registration to the Appellant 9. The appellant prays to reserve the right to add, alter, amend and/or withdraw any of the above Grounds of Appeal.

4.

Shri Sanjay R Shah, the Ld. AR of the assessee submitted that Ld. CIT(E) had allowed only one opportunity of hearing on 14.02.2026. He

ITA Nos. 1219 & 1220/Ahd/2026 Gujarat CSR Authority Vs. CIT (Exemption) 4 further contended that despite having filed application seeking adjournment in response to the notice dated 14.02.2026, and not having received any communication regarding the acceptance or rejection thereof, the same were not considered by the Ld. CIT(E) while passing the impugned order. The Ld. AR explained that the Ld. CIT(E) had passed the order without taking into account the substantial details and documents already filed with the application. The Ld. AR further relied upon the decision of this Tribunal in ITA No. 998/Ahd/2026 in the case of Subhadraben Pratapsinh Charitable Trust, wherein the matter was restored to the file of the lower authority for granting another opportunity to the assessee. He, therefore, 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 R P Rastogi, 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.

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 only one effective opportunity was granted to the assessee. The interest of natural justice cannot be served by rejecting the application of the assessee by allowing only one opportunity. Though the Ld. CIT(E) has mentioned in the order that notices were issued from time of time, we don’t find reference of any notice other than

ITA Nos. 1219 & 1220/Ahd/2026 Gujarat CSR Authority Vs. CIT (Exemption) 5 the notice dated 14.02.2026. 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.

7.

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

ITA No. 1220/Ahd/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

ITA Nos. 1219 & 1220/Ahd/2026 Gujarat CSR Authority Vs. CIT (Exemption) 6

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 29/06/2026 at Ahmedabad.

Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 29th June, 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. 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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