SANDHYA EDUCATIONAL TRUST,CHANDIGARH vs. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), CHANDIGARH

In the present appeal Assessee has raised the following grounds:

During the course of proceedings, the Ld. CIT(E) issued a show cause notice dated 12.02.2026 calling upon the assessee to furnish details regarding schools being

1 The Ld. CIT(E), after considering the material available on record, observed that despite issuance of notice and affording opportunity of being heard, the assessee neither furnished any reply nor sought adjournment. It was further observed that the notice had been duly served through the e-filing portal as well as through email. The Ld. CIT(E) held that in absence of the requisite details and supporting evidences, the genuineness of activities and charitable nature of the trust could not be verified. The Ld. CIT(E) further relied upon various judicial precedents relating to dismissal for non-prosecution and held that the assessee was not interested in pursuing its application. Accordingly, the application filed by the assessee u/s 12AB was rejected vide order dated 28.02.2026. 4. Against the order of the Ld. CIT(E) the assessee preferred an appeal before the Tribunal.

Before us, the Ld. AR submitted that the assessee could not comply with the notice issued by the Ld. CIT(E) due to unavoidable circumstances and sufficient opportunity was not effectively availed by the assessee. It was contended that the trust is genuinely engaged in charitable activities relating to education and is in possession of all requisite documents and evidences necessary for substantiating its claim for registration. The Ld. AR further submitted that the rejection has merely been made on account of non-compliance without examining the merits of the application and prayed that one more effective opportunity may be granted to the assessee to place all supporting evidences before the Ld. CIT(E). The Ld. AR accordingly requested that the matter may be restored back to the file of the Ld. CIT(E) for fresh adjudication.

On the other hand, the Ld. DR strongly relied upon the order passed by the Ld. CIT(E). It was submitted that adequate opportunity had already been granted to the assessee but the assessee failed to furnish the requisite details before the lower

We have heard the rival submissions and perused the material available on record. It is observed that the application filed by the assessee trust seeking registration u/s 12AB of the Act has been rejected by the Ld. CIT(E) mainly on account of non-compliance and non-furnishing of details and documents called for 8. Before us, the Ld. AR has submitted that the assessee could not effectively comply with the notices due to unavoidable circumstances and that the trust is genuinely engaged in educational and charitable activities. It has further been submitted that the assessee is in possession of all requisite documentary evidences and is now ready and willing to furnish the same before the Ld. CIT(E). Considering the entirety of facts and circumstances of the case, and keeping in view the principles of natural justice, we are of the considered opinion that one more effective opportunity deserves to be granted to the assessee for substantiating its claim for registration.

Accordingly, in the interest of substantial justice, we set aside the impugned order passed by the Ld. CIT(E) and restore the matter back to his file for fresh adjudication de novo in accordance with law. However, considering the fact that despite issuance of notice and grant of opportunity by the Ld. CIT(E), the assessee failed to comply with the proceedings before the lower authority, we deem it appropriate to impose a cost of Rs.5,000/- upon the assessee. The said amount shall be deposited by the assessee in the Poor Patients Welfare Fund of Postgraduate Institute of Medical Education and Research (PGI), Chandigarh, within a period of 30

In the result, appeal of the Assessee is allowed for statistical purposes. मनोज कुमार अ"वाल लिलत कुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद"/ ACCOUNTANT MEMBER "ाियक सद" /JUDICIAL MEMBER 20/05/2026 AG आदेश की "ितिलिप अ"ेिषत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant

""थ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"ीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File