PURUSHOTAMDAS BAPA EDUCATION AND CHARITABLE TRUST,BHAVNAGAR vs. CIT(EXEMPTION), AHMEDABAD

PDF · subscribers
ITA 1172/AHD/2026Status: DisposedITAT Ahmedabad18 May 2026AY 2026-277 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored both matters to the CIT(E) for fresh adjudication, granting the assessee one more opportunity to furnish documents and substantiate its claims. The 80G approval was deemed consequential to the 12AB registration.

What were the facts?

The assessee trust applied for registration under Section 12AB and approval under Section 80G. The CIT(E) rejected the 12AB application for non-furnishing of documents and the 80G approval as a consequence of the 12AB rejection.

What were the issues?

Whether the CIT(E) erred in rejecting the 12AB registration and 80G approval without providing adequate opportunity. Whether 12AB registration is a mandatory pre-condition for 80G approval.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Respondent: Shri Prem Prakash Meena, CIT-DR
Hearing: 13.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER I.T.A. Nos.1171&1172/Ahd/2026 (Assessment Year: 2026-27) Purushotamdas Bapa Education Vs. Commissioner of And Charitable Trust, Income Tax (Exemption), C/o. Kishorbhai Bhanushankar Ahmedabad Panot, AT Dihor Taluka, Talaja, Dist: Bhavnagar-364150 [PAN No.AACTP5625J] (Appellant) .. (Respondent) Shri Manoj Kumar P. Gohil, AR Appellant by : Respondent by: Shri Prem Prakash Meena, CIT-DR Date of Hearing 13.05.2026 18.05.2026 Date of Pronouncement O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: Both appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide orders dated 08.03.2026. Since common facts and issues for consideration are involved for both the appeals before us, both the appeals are being disposed by way of a common order.

2.

The assessee has taken the following grounds of appeal:

ITA No. 1171/Ahd/2026 “1. Learned CIT(E) has erred in law and on facts of the case in passing the impugned order without giving proper attention on documents submitted/available with Income Tax Portal like ITRs and Forms. 2. Learned CIT(E) has erred in law and on facts of the case in rejection the provisional registration of the Appellant u/s. 12A of the Act.

ITA Nos. 1171&1172/Ahd/2026 Purushotamdas Bapa Education And Charitable Trust vs. CIT(E) Asst. Year –2026-27 - 2– 3. The appellant craves leave to add, amend, alter, or withdraw any of the grounds of appeal at or before the time of hearing.” We shall first take up the appeal relating to rejection of approval under section 12A of the Act

3.

The brief facts of the case are that the assessee trust, namely PURUSHOTAMDAS BAPA EDUCATION AND CHARITABLE TRUST, filed an application in Form No.10AB seeking registration under section 12A/12AB of the Income-tax Act, 1961 (“the Act”). The application was filed before the ld. CIT(Exemptions), Ahmedabad and was required to be examined in terms of section 12AB(1)(b) of the Act read with Rule 17A of the Income-tax Rules, 1962, which governs the procedure for fresh registration and prescribes the documents and evidences required to be furnished for the purpose of satisfying the prescribed authority regarding the genuineness of activities of the trust and the conformity of such activities with the stated charitable objects.

4.

During the course of proceedings, the ld. CIT(Exemptions) issued notices from time to time, including opportunity dated 15.02.2026, calling upon the assessee to furnish requisite details, documentary evidences and supporting material as prescribed under Rule 17A(2) of the Income-tax Rules, 1962. However, according to the ld. CIT(Exemptions), the assessee neither furnished any submissions/details/documents in response to the notices issued nor sought any adjournment in the matter. The ld. CIT(Exemptions) accordingly observed that in absence of supporting documentary evidences, he was unable to satisfy himself regarding (i) the genuineness of the activities of the trust or institution, (ii) whether the activities were being carried out in

ITA Nos. 1171&1172/Ahd/2026 Purushotamdas Bapa Education And Charitable Trust vs. CIT(E) Asst. Year –2026-27 - 3– consonance with the objects of the trust, and (iii) whether other laws material for achieving the charitable objects had been complied with. Proceeding on the aforesaid basis, the ld. CIT(Exemptions) rejected the application filed in Form No.10AB under section 12AB of the Act and further cancelled the provisional registration, if any, granted earlier to the assessee. The ld. CIT(Exemptions) also directed the assessee to compute its tax liability under section 115TD of the Act read with Rule 17CB of the Income-tax Rules and comply with the consequential statutory requirements prescribed thereunder.

5.

The assessee is in appeal before us against the order passed by CIT (Exemptions) dismissing the application of the assessee.

6.

We have heard the rival submissions and perused the material available on record. It is observed that the rejection of registration under section 12AB has primarily been made on account of non-compliance and failure on the part of the assessee to furnish the requisite documents and evidences before the ld. CIT(Exemptions). At the same time, it is also noticed that the matter has been decided without examination of the relevant evidences and supporting material which the assessee now claims to be in a position to furnish before the authorities. The proceedings relating to grant of registration under section 12AB carry significant tax consequences inasmuch as such registration forms the foundation for claiming exemption under sections 11 and 12 of the Act.

7.

We further note that the Coordinate Bench of the Tribunal in similar circumstances in ITA No.970/Ahd/2026 had restored the issue relating to rejection of registration under section 12AB to the file of the ld.

ITA Nos. 1171&1172/Ahd/2026 Purushotamdas Bapa Education And Charitable Trust vs. CIT(E) Asst. Year –2026-27 - 4– CIT(Exemptions) for de novo adjudication after observing that the assessee should be granted one more effective opportunity to furnish the requisite documents and establish the genuineness of its activities and objects.

8.

Having regard to the entirety of facts and in the interest of substantial justice, we are of the considered view that the assessee deserves one more opportunity to substantiate its claim for registration under section 12AB of the Act. Accordingly, we set aside the impugned order passed by the ld. CIT(Exemptions) and restore the matter to his file for fresh adjudication in accordance with law. The ld. CIT(Exemptions) shall examine the application afresh after providing reasonable and adequate opportunity of being heard to the assessee. The assessee is also directed to furnish all requisite documents, evidences and details as prescribed under Rule 17A(2) of the Income-tax Rules, 1962 and fully cooperate in the proceedings without seeking unnecessary adjournments. Needless to clarify, the ld. CIT(Exemptions) shall adjudicate the issue independently on merits in accordance with law after examining the genuineness of activities and the objects of the trust.

9.

In the result, the appeal of the assessee relating to rejection of registration under section 12AB of the Act is allowed for statistical purposes.

We shall now take up the appeal relating to rejection of approval under section 80G(5) of the Act

10.

The assessee has raised the following grounds of appeal:

ITA Nos. 1171&1172/Ahd/2026 Purushotamdas Bapa Education And Charitable Trust vs. CIT(E) Asst. Year –2026-27 - 5– ITA No. 1172/Ahd/2026 “1. Learned CIT(E) has erred in law and on facts of the case in passing the impugned order without giving proper attention on documents submitted/available with Income Tax Portal like ITRs and Forms. 2. Learned CIT(E) has erred in law and on facts of the case in rejection the provisional registration of the Appellant u/s. 80G of the Act. 3. The appellant craves leave to add, amend, alter or withdraw any of the grounds of appeal at or before the time of hearing.” 11. The brief facts relating to this issue are that the assessee filed an application in Form No.10AB seeking approval under section 80G(5) of the Income-tax Act, 1961 before the ld. CIT(Exemptions), Ahmedabad. During the course of proceedings, the ld. CIT(Exemptions) observed that the assessee did not possess a valid registration under section 12A/12AB of the Act either in the form of a regular registration order in Form No.10AD or a valid provisional registration in Form No.10AC. The ld. CIT(Exemptions) accordingly held that registration under section 12A/12AB is a mandatory pre-condition for grant of approval under section 80G(5) of the Act. Reliance was placed upon the judgment of the Hon’ble Gujarat High Court in the case of CIT (Exemptions) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust reported in 122 taxmann.com 98, wherein it was held that in absence of valid registration under section 12A, approval under section 80G cannot be granted. Accordingly, the ld. CIT(Exemptions) rejected the application filed under section 80G(5) vide DIN No. ITBA/EXM/F/EXM45/2025- 26/1087004677(1) dated 08.03.2026 as non-maintainable.

12.

The assessee is in appeal before us against the aforesaid order.

ITA Nos. 1171&1172/Ahd/2026 Purushotamdas Bapa Education And Charitable Trust vs. CIT(E) Asst. Year –2026-27 - 6– 13. We have considered the facts of the case and the material available on record. We find that the rejection of approval under section 80G(5) has been made solely on the ground that the assessee did not possess valid registration under section 12A/12AB of the Act. However, while adjudicating the connected appeal relating to registration under section 12AB hereinabove, we have already restored the matter to the file of the ld. CIT(Exemptions) for fresh adjudication. Therefore, the very foundation on which the approval under section 80G has been rejected presently no longer survives and the issue relating to section 80G approval becomes consequential and intrinsically linked to the outcome of registration proceedings under section 12AB.

14.

We further note that in identical circumstances, the Coordinate Bench of the Tribunal in ITA No.971/Ahd/2026 restored the issue relating to rejection of approval under section 80G of the Act to the file of the ld. CIT(Exemptions) for fresh adjudication after deciding the issue of registration under section 12A/12AB.

15.

Accordingly, following the same reasoning and in the interest of justice, we set aside the impugned order passed by the ld. CIT(Exemptions) rejecting the application under section 80G(5) of the Act and restore the matter to his file for de novo adjudication in accordance with law. The ld. CIT(Exemptions) shall reconsider the assessee’s application for approval under section 80G(5) afresh after adjudicating the issue relating to registration under section 12AB and after providing adequate opportunity of being heard to the assessee.

ITA Nos. 1171&1172/Ahd/2026 Purushotamdas Bapa Education And Charitable Trust vs. CIT(E) Asst. Year –2026-27 - 7–

16.

In the result, the appeal of the assessee relating to rejection of approval under section 80G(5) of the Act is allowed for statistical purposes.

17.

In the combined result, both the appeals of the assessee are allowed for statistical purposes. This Order is pronounced in the Open Court on 18/05/2026

Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 18/05/2026 TANMAY, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

1.

Date of dictation 15.05.2026 (Dictated on dragon software) 2. Date on which the typed draft is placed before the Dictating Member 15.05.2026 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 15 .05.2026 5. Date on which the fair order is placed before the Dictating Member for pronouncement 18.05.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S 18.05.2026 7. Date on which the file goes to the Bench Clerk 18.05.2026 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order……………………………………

More judgments on Section 12AB

All 5,972 judgments and leading authorities on Section 12AB →

Recent GST High Court judgments

Search GST case law →