TALAJA KELAVNI MANDAL,BHAVNAGAR vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

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ITA 1316/AHD/2026Status: DisposedITAT Ahmedabad20 May 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that rejecting the application after only one opportunity violated principles of natural justice. Therefore, the matter was set aside to the CIT(E) to allow another opportunity for the assessee to comply and be heard.

What were the facts?

The assessee applied 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 with a notice, citing lack of genuine activities. The assessee claimed the non-compliance was due to their tax consultant's fault and requested another opportunity.

What were the issues?

Whether the rejection of registration and approval applications for non-compliance with a single notice violates natural justice. Whether the assessee should be granted another opportunity to comply with the requirements.

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, “A” BENCH, AHMEDABAD

Before: MS SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Hardik Mehta, AR
For Respondent: Shri Pushpendra Singh Chaudhary, 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 08.03.2026 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. 1316 & 1317/Ahd/2026 Talaja Kelavani Mandal Vs. CIT(E)

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. 1316/Ahd/2026

3.

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

1.

The Hon'ble CIT(Exemption) has erred both in law and on facts by rejecting the application of the Appellant filed for the grant of registration u/s 12A of the Income Tax Act, 1961 ('the Act'). 2. The Hon'ble CIT(Exemption) has erred in rejecting the application filed for the grant of registration u/s 12A of the Act, as the Appellant was restricted by reasonable cause to submit the relevant details called for. 3 The Hon'ble CIT(Exemption) has erred in cancelling the provisional approval granted u/s 12A of the Act on the ground that the Appellant could not comply with the notice dated 13.02.2026 issued for furnishing certain details/documents. 4. The Hon'ble CIT(Exemption) has erred in treating the present application for registration filed as non-maintainable, which is against the principle of natural justice. 5. The Hon'ble CIT(Exemption) has erred in directing the Appellant to pay tax as per the provisions of section 115TD(5) of the Act. 6. Your Appellant reserves the right to add, modify, amend or withdraw any ground(s) of appeal on or before the hearing of the appeal.

4.

Shri Hardik Mehta, the Ld. AR of the assessee submitted that the assessee is an old trust engaged in genuine charitable activities in the field of education. The assessee was granted registration under section 12AB of the Act vide order dated 06.04.2022 u/s 12A(1)(ac)(i) of the Act,

ITA No. 1316 & 1317/Ahd/2026 Talaja Kelavani Mandal Vs. CIT(E) 3 valid for A.Ys. 2022-23 to 2026-27. It had filed Form no. 10AB of the Act on 29.09.2025 seeking fresh registration under section 12A of the Act. The Ld. AR explained that the Ld. CIT(E) had allowed only one opportunity of hearing vide notice dated 13.02.2026. He submitted that the non- compliance was due to fault 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).

5.

Per contra, Shri Pushpendra Singh Chaudhary, 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 13.02.2026. 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 produce the documents and evidences as required by him.

ITA No. 1316 & 1317/Ahd/2026 Talaja Kelavani Mandal Vs. CIT(E) 4 7. In the result, the appeal of the assessee is allowed for statistical purpose.

ITA No. 1317/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 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 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 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.

ITA No. 1316 & 1317/Ahd/2026 Talaja Kelavani Mandal Vs. CIT(E)

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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