AUREENA FOUNDATION,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 1115/AHD/2026Status: DisposedITAT Ahmedabad20 May 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that rejecting an application after only one opportunity violates principles of natural justice. Therefore, the matter was set aside to the CIT(E) to provide the assessee with another opportunity to be heard and make compliance.

What were the facts?

The assessee filed an application for renewal of registration under Section 12A(1)(ac)(ii) and approval under Section 80G(5). The CIT(E) rejected the applications due to non-compliance by the assessee after providing only one opportunity for hearing.

What were the issues?

Whether the CIT(E) erred in rejecting the applications without providing sufficient opportunity for hearing and compliance. Whether the rejection of the 80G application was justified in the absence of valid 12A registration.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 80G(5)

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 Mehul K Patel, AR
For Respondent: Shri R P Rastogi, CIT-DR
Hearing: 18.05.2026Pronounced: 20.05.2026

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 09.03.2026 in the proceeding u/s 12A(1)(ac)(ii) 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 No. 1114 & 1115/Ahd/2026 Aureena Foundation Vs. CIT(E) 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. 1114/Ahd/2026

3.

The following grounds have been taken by the assessee in this appeal:

1.

That on facts, and in law, the learned CIT(Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for registration u/s 12A of the act, vide ex- parte order. 2. That on facts and in law, the application made u/s 12A of the Act ought to have been granted by learned CIT(Exemption) as prayed for. 3. The appellant craves liberty to add, alter, amend and ground of appeal. 4. Shri Mehul K Patel, the Ld. AR of the assessee submitted that Ld. CIT(E) had allowed only one opportunity of hearing vide notice dated 17.02.2026, which couldn’t be complied by the assessee. He explained that the assessee was dependant on his tax consultant for making the compliance. According to the Ld. AR the non-compliance was due to inadvertent mistake on the part of the tax consultant and the assessee was totally unaware of the non-compliance before the Ld. CIT(E). The Ld. AR requested that the assessee may be allowed another opportunity for making compliance by setting aside the matter to the file of the Ld. CIT(E).

ITA No. 1114 & 1115/Ahd/2026 Aureena Foundation Vs. CIT(E) 3 5. Per contra, Shri R P Rastogi, the Ld. CIT-DR, supported the orders 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 considered the request of the assessee. It is found that the present application was filed for registration of the trust u/s 12A(1)(ac)(ii) of the Act. In the present proceeding the Ld. CIT(E) had allowed only one opportunity to the assessee for furnishing certain details and thereafter the application of the assessee was rejected. 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 the notice dated 17.02.2026. In the interest of justice, therefore, we deem it proper to set aside the matter to the file of Ld. CIT(E) with a direction to allow another opportunity of being heard to the assessee. The assessee is also directed to make compliance before the Ld. CIT(E) and to produce the documents and evidences as required by him.

7.

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

ITA No. 1115/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 appeal in respect of approval u/s. 80G(5) of the Act is also set aside to the

ITA No. 1114 & 1115/Ahd/2026 Aureena Foundation Vs. CIT(E)

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 20/05/2026 at Ahmedabad.

Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 20th May, 2026 (True Copy) आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत 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/सहायक उप सहायक पंजीकार उप उप सहायक 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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