GENUINE HELP FOUNDATION,AHMEDABAD vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 1419/AHD/2026Status: DisposedITAT Ahmedabad12 June 2026AY 2027-285 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found merit in the assessee's argument regarding insufficient opportunity. It set aside the CIT(E)'s order and restored the application for fresh adjudication, granting the assessee a reasonable opportunity to be heard.

What were the facts?

The assessee's application for registration under Section 12A was rejected by the CIT(E) for failing to submit requisite documents. The assessee contended that insufficient time was provided to furnish these documents.

What were the issues?

Whether the CIT(E) erred in rejecting the Section 12A registration application without providing a reasonable opportunity to the assessee to submit documents. Whether the time granted for submission of documents was adequate.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, C” BENCH, AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL "C” BENCH, AHMEDABAD DR. B.R.R. KUMAR VICE PRESIDENT SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 1419/AHD/2026 (Assessment Year: 2027-2028) Genuine Help Foundation Basement, Jashwant Chembers, Opp Sidisaiyed Mosque, Beside Central Bank, Ahmedabad-380001 [PAN:AADTG7682H] …………. Appellant Commissioner of Income Tax Vs (Exemption), Ahmedabad Room No 609, Floor 6, Aaykar Bahwan (Vejalpur), Nr. Sachin Tower, 100ft Ring Road, Anand Nagar Prahalad Nagar Road, Ahmedabad-380015, Gujarat …………. Respondent Appearance For the Appellant/Assessee : Ms. Foziya Saiyed, AR For the Respondent/Department : Shri Rignesh Das, CIT-DR Date Conclusion of hearing : 09.06.2026 Pronouncement of order : 12.06.2026

O R D E R Per Rahul Chaudhary, Judicial Member: 1. By way of the present appeal Assessee has challenged the Order, dated 08/03/2026, passed by Learned Commissioner of Income-Tax (Exemption), Ahmedabad [hereinafter referred to as the ‘CIT(E)’], whereby the application filed by the Assessee in Form No. 10AB under Section 12A of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] was rejected.

2.

The Assessee has raised multiple grounds of appeal. Ground No. 1 and 2 raised by the Assessee read as under:

ITA No.1419/AHD/2026 Assessment Year 2027-2028 “1. Error in Law and on Facts That the learned Commissioner of Income Tax (Exemption), Ahmedabad has erred both in law and on facts in rejecting the appellant's application for registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961 vide order dated 08.03.2026, without properly appreciating the charitable nature of the objects and activities of the appellant trust. The impugned order is arbitrary, mechanical, and contrary to the provisions governing grant of registration to charitable institutions. 2. Violation of Principles of Natural Justice That the impugned order has been passed in violation of the fundamental principles of natural justice and the doctrine of audi alteram partem. The learned CIT(E) issued a show cause notice dated 16.02.2026 requiring the appellant to furnish details by 23.02.2026, thereby granting extremely limited time for compliance. Considering that the notice required submission of several documents prescribed under Rule 17A(2) of the Income-tax Rules, the time granted was insufficient and unreasonable. The rejection of the application without providing an effective and meaningful opportunity of being heard renders the impugned order legally unsustainable.

3.

The relevant facts in brief are that the application filed by the Assessee in Form No.10AB for seeking registration under Section 12A of the Act was rejected by the Learned CIT(E) on the ground that the Assessee had failed to submit the requisite details/documents to establish the genuineness of the charitable activities and the conduct of operations of the Assessee-trust in consonance with its objects. Aggrieved by the rejection order passed by the Learned CIT(E), the Assessee has preferred the present appeal before this Tribunal. The Learned Authorised Representative for the Assessee appearing before us sought another opportunity to make out a case for grant of registration. It was submitted that the Assessee was possession of all relevant details/documents. However, the same could not be submitted as reasonable opportunity of being heard was not granted to the Assessee.

4.

Per Contra, the Learned Departmental Representative submitted that the Assessee had neither filed relevant documents/details along with the

ITA No.1419/AHD/2026 Assessment Year 2027-2028 application nor did the Assessee come forward to file the same in response to notice(s) issued by the Learned CIT(E). Therefore, there was no infirmity in the order passed by the Learned CIT(E).

5.

We have considered the rival contentions and have perused the material available on record. We note that the Learned CIT(E) had rejected the application after affording opportunity to the Assessee on 16/02/2026. It is the case of the Assessee that the aforesaid show-cause notice gave the Assessee time only till 23/02/2026 to file relevant details/documents. Though the documents/details were available, the same could not be collated and filed before the Learned CIT(E) since a reasonable opportunity of being heard was not granted to the Assessee. We find merit in the aforesaid contention advanced on behalf of the Assessee. We are of the view that the interest of justice would be met in case another opportunity is granted to the Assessee to furnish the relevant documents/details/submissions for consideration of the Learned CIT(E). Accordingly, we set aside the impugned order and restore the application filed by the Assessee back to the file of the Learned CIT(E) with the directions to adjudicate the said application afresh after taking into consideration the relevant documents/details/submission filed by the Assessee and after granting the Assessee a reasonable opportunity of being heard. The Assessee is directed to forthwith furnish the relevant documents/details/submission before the Learned CIT(E) on receiving notice of hearing. The Assessee is directed to be vigilant and track the proceedings through Income Tax Business Application (ITBA) Portal. It is clarified that in case the Assessee fails to file the supporting documents/submission; or fails to enter appearance before the Learned CIT(E), the Learned CIT(E) would be at liberty to adjudicate the application based upon the material on record. In terms of the aforesaid, Ground No.1 and 2 raised by the Assessee are allowed while all the other grounds raised by the Assessee are dismissed as having been rendered infructuous without returning any findings on merits.

6.

In the result, in terms of Paragraph 5 above, the present appeal

ITA No.1419/AHD/2026 Assessment Year 2027-2028 preferred by the Assessee is treated as allowed for statistical purposes.

The order is pronounced on 12.06.2026

Sd/- Sd/- (Dr. B.R.R. Kumar) (Rahul Chaudhary) Vice President Judicial Member

िदनांक Dated :12.06.2026 अहमदाबाद Ahmedabad; True Copy H.C. PS

ITA No.1419/AHD/2026 Assessment Year 2027-2028 आदेशक��ितिलिपअ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent. 3. संबंिधतआयकरआयु�/ Concerned CIT 4. आयकरआयु�(अपील) / The CIT(A) 5. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड�फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, अहमदाबाद / ITAT, Ahmedabad

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