BHAGWAN MAHAVIR EDUCATION FOUNDATION,SURAT vs. ASST. CIT, CIRCLE-2 (EXEMPTION), AHMEDABAD

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ITA 985/AHD/2026Status: DisposedITAT Ahmedabad22 May 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) had provided only one opportunity for hearing and that there was a mistake in the assessee's application regarding the section applied for. Therefore, the matter was set aside to the CIT(E) to allow another opportunity for compliance and rectification.

What were the facts?

The assessee filed an application for registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application because the assessee lacked a valid prior registration, which is a mandatory condition.

What were the issues?

Whether the CIT(E) erred in rejecting the application without providing adequate opportunity and considering a potential error in the section applied for.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Suresh Kabra, AR
For Respondent: Shri Rignesh Das, CIT-DR
Hearing: 21.05.2026Pronounced: 22.05.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad, [in short “CIT(E)”], dated 12.01.2026 in the proceeding u/s 12A(1)(ac)(ii) of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed an application in form No. 10AB for registration u/s. 12A(1)(ac)(ii) of the Act. The Ld. CIT(E) had rejected the application of the assessee for the reason that the assessee did not have a valid registration u/s. 12A/12AB, which is mandatory condition for granting approval u/s. 12A(1)(ac)(ii) of the Act.

ITA No. 985/Ahd/2026 Bhagwan Mahavir Education Foundation Vs. CIT(E) 2 3. Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal:

1 The Ld. CIT(E) has erred in law and on facts in rejecting the application for renewal of Registration u/s. 12A(1)(ac) of the Income Tax Act. . 2. The appellant craves leave to add, amend, alter, and or vary any of the grounds at any stage of the proceedings.

4.

Shri Suresh Kabra, the Ld. AR of the assessee submitted that there was error in the application of the assessee in selection of code and the application was made for registration u/s. 12A(1)(ac)(ii) of the Act, in place of the correct code of u/s. 12A(1)(ac)(iii) of the Act. He further submitted that the Ld. CIT(E) had rejected the application of the assessee by allowing only one opportunity of being heard 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 Rignesh Das, the Ld. CIT-DR, supported the order of the lower authorities. However, he had no objection if the matter was set aside to the file of Ld. CIT(E) for allowing another opportunity to the assessee.

6.

We have considered the request of the assessee. It is found that the Ld. CIT(E) has allowed only one opportunity to the assessee before rejecting the application. He has also observed that the assessee did not have a valid registration, which was a pre-requisite for application u/s. 12A(1)(ac)(ii) of the Act. The assessee has brought on record a copy of the provisional registration allowed by the Ld. CIT(E) on 24.03.2023, which was valid for A.Y. 2023-24 to 2025-026. Further, as explained by

ITA No. 985/Ahd/2026 Bhagwan Mahavir Education Foundation Vs. CIT(E)

the assessee, there was an error in selection of code and the application was wrongly made u/s. 12A(1)(ac)(ii) of the Act, in place of u/s. 12A(1)(ac)(iii) of the Act. In the interest of justice, we, therefore, deem it proper to set aside the matter to the file of Ld. CIT(E) with a direction to allow another opportunity to the assessee to make compliance. The assesse is also directed to rectify the mistake in the application, which should be favourably considered by the Ld. CIT(E) and the delay if any, in filing of the application should be condoned. Thereafter, the Ld. CIT(E) should re-adjudicate the application of the assessee in accordance with the provisions of law.

7.

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

Order pronounced in the Court on 22/05/2026 at Ahmedabad.

Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 22nd May, 2026 (True Copy) Neelesh, Sr. P.S 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 आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अहमदाबाद अिधकरण अहमदाबाद अहमदाबाद / ITAT, Ahmedabad अहमदाबाद

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