SRI JAGADGURU SHIVANAND HUMAN WELFARE ASSOCIATION,GADAG vs. CIT EXEMPTIONS BANGLORE, BENGALURU

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ITA 2519/BANG/2025Status: DisposedITAT Bangalore25 June 2026AY 2025-265 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal acknowledged that the sole reason for denying registration under Section 12AB was the assessee's failure to respond to notices and submit necessary documents. The Tribunal agreed with the CIT(Exemptions) that submission of necessary documents to prove the genuineness of activities and compliance with other laws is crucial for granting registration. However, considering the assessee's submission that the founder's health issues prevented representation and the request for a remand, the Tribunal, in the interest of justice, equity, and fair play, decided to remit the case back to the CIT(Exemptions) for a fresh decision. The assessee was directed to produce all relevant documents and evidence. The Tribunal emphasized that a reasonable opportunity of being heard must be granted to the assessee and warned that further default would result in no leniency. The issue of whether the rejection was illegal due to non-examination of merits was not definitively decided but was rendered moot by the remand.

What were the facts?

The assessee, Sri Jagadguru Shivanand Human Welfare Association, filed an application for registration under Section 12AB of the Income Tax Act, 1961, on March 28, 2025. The Commissioner of Income Tax (Exemptions) issued notices on August 7, 2025, and August 18, 2025. The assessee failed to respond to these notices or appear before the CIT(Exemptions). Consequently, the CIT(Exemptions) rejected the application for registration on September 7, 2025, citing the assessee's non-response and failure to submit necessary documents to prove the genuineness of its activities and compliance with other laws. The assessee appealed this order to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the rejection of the application for registration under Section 12AB of the Income Tax Act, 1961, solely on the grounds of non-response, without examining the merits of the activities or objects, is legally valid? Assessee's contention: The assessee argued that the CIT(Exemptions) failed to appreciate that under Section 12AB(1)(a) and (b), the Commissioner is obligated to call for documents and satisfy himself regarding the genuineness of activities and compliance with laws. Rejection based solely on alleged non-response, without examining the merits, is against the mandate of law. The order was also passed in violation of natural justice, as the founder's health issues and lack of computer knowledge prevented a timely response, and an additional opportunity should have been given. The assessee also contended that the order was cryptic, non-speaking, and lacked the required satisfaction under Section 12AB(1)(b)(i)(A) & (B), and that registration should not be denied on technical grounds when objects are charitable. The assessee relied on judicial precedents that registration cannot be denied on technical or procedural grounds when objects are charitable. Revenue's contention: The Revenue, through the ld. D.R., supported the order of the CIT(Exemptions) but conceded that the case could be remitted back to the CIT(Exemptions) as the assessee had not furnished any details.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 2(15),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B”;BENCH: BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

Hearing: 01.04.2026

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 07.09.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/ 1080392211(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.2519/Bang/2025 Sri Jagadguru Shivanand Human Welfare Association, Gadag Page 2 of 5

3.

The brief facts of the case are that the assessee is a Society registered under the Mysore Societies Registration Act, 1960 vide Registration No. 13/65-66/Dharwar dated 17/01/1966 granted by the Registrar of Societies in Mysore. The main objectives of the assessee society is to work for welfare of human beings, by establishing religious institutions, educational centres, literary activity, Hindi, Sanskrit, Economic, social, Philosophical and cultural centres. The assessee society applied for registration in Form 10AB under sub clause (iii) of clause (ac) of sub-section (1) of

ITA No.2519/Bang/2025 Sri Jagadguru Shivanand Human Welfare Association, Gadag Page 3 of 5 section 12A of the Act on 28/03/2025. 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 had 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 28/03/2025 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 could not represent its case before the ld. CIT(E) as the founder & managing member of the society Sri Jagadguru Shivananda Swamiji was having health related issues and accordingly the ld. AR of the assessee undertakes to submit all the necessary documents/ records/ Accounts/Report/deed/ Certificate if the matter is remanded back to the file of ld. CIT(E).

5.

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

6.

We have heard the rival submissions and perused the materials available on record. On going through the order of ld CIT(Exemption), we observed that the sole reason for denying the

ITA No.2519/Bang/2025 Sri Jagadguru Shivanand Human Welfare Association, Gadag Page 4 of 5 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 could not represent its case due to the health issues of the founder & managing member of the society Sri Jagadguru Shivananda Swamiji. 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.2519/Bang/2025 Sri Jagadguru Shivanand Human Welfare Association, Gadag Page 5 of 5

7.

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

Order pronounced in the open court on 25th June, 2026

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

Bangalore, Dated 25th 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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