SHREE MADHAV VIDYA NIKETAN TRUST,ANKLESHWAR vs. THE CIT(EXEMPTION), AHMEDABAD

PDF · subscribers
ITA 1442/AHD/2026Status: DisposedITAT Ahmedabad12 June 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee was not granted sufficient opportunity and that the rejection was primarily due to a lack of documentary evidence. Therefore, the matter was restored to the CIT(E) for fresh adjudication, allowing the assessee to furnish all required documents and explanations.

What were the facts?

The assessee trust applied for registration under Section 12AB and 80G(5) of the Income Tax Act. The CIT(E) rejected the application for Section 12AB registration after giving one opportunity for hearing, citing non-response from the assessee. The application for Section 80G(5) was rejected without any hearing, solely based on the Section 12AB rejection.

What were the issues?

Whether the CIT(E) erred in rejecting the applications for registration under Section 12AB and 80G(5) without providing sufficient opportunity for hearing and submission of documents.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri TR Senthil Kumar & Shri Narendra Prasad Sinha

For Appellant: Shri Mehul K. Patel, A.R
For Respondent: Shri Pruthviraj Meena, CIT-D.R

आदेश/ORDER

PER TR SENTHIL KUMAR, JUDICIAL MEMBER:

These two appeals are filed by the Assessee Trust as against separate orders both dated 08.03.2026 passed by Commissioner of Income Tax (Exemption), Ahmedabad (in short “Ld. CIT(E)”) denying registration under Section 12AB and 80G(5) of the Income Tax Act (hereinafter referred to as “the Act”) respectively.

2.

The brief facts of the case are that the assessee filed applications in Form No. 10AB seeking registration under sections 12AB and 80G(5)(iii) of the Act. Ld. CIT(E) given single opportunity of hearing and the application filed for registration

I.T.A Nos. 1441 & 1442/Ahd/2026 Shree Madhav Vidya Niketan Trust under section 12AB of the Act calling for the details of the activities and documents. However, the Assessee has not responded to the same which has resulted in passing an ex-parte order rejecting registration under section12AB of the Act as well as cancelling the provisional registration already granted by passing impugned order dated 08.03.2026. As far as application filed under section 80G(5) no opportunity was given to the Assessee Trust and the application for registration under section 80G(5) was also rejected on the sole ground 12AB registration also denied to the Assessee Trust.

3.

Aggrieved against the same Assessee Trust are in appeal before us raising the following Grounds of Appeal in ITA No. 1441/Ahd/2026:-

“(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 any ground of appeal.”

4.

The Grounds of appeal raised by the assessee in ITA No. 1442/Ahd/2026 reads as under: -

“(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 approval u/s 80G(5) of the Act, vide ex-parte order.

(2) That on facts and in law, the application made u/s 80G(5) of the Act ought have been granted by learned CIT (Exemption) as prayed for.

I.T.A Nos. 1441 & 1442/Ahd/2026 Shree Madhav Vidya Niketan Trust (3) The appellant craves liberty to add, alter, amend any ground of appeal.”

5.

Shri Mehul K. Patel, the Ld. AR of the assessee submitted that the assessee had furnished all details along with the application in Form No. 10AB before the Ld. CIT(E). He submitted that the assessee is in a position to furnish all other requisite details and documentary evidences to substantiate its claim and satisfy the conditions prescribed under sections12AB and 80G(5)(iii) of the Act. He, therefore, prayed that the impugned order be set aside and the matter be restored to the file of the Ld. CIT(E) for fresh adjudication.

6.

Per contra, Pruthviraj Meena, the Ld. CIT-DR, supported the orders passed by 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 Trust.

7.

We have carefully considered the facts of the case and the material available on record. It is observed that the application of the assessee-trust for registration under section12AB of the Act came to be rejected by the Ld. CIT(E) on the ground that the assessee failed to furnish supporting documentary evidences to establish fulfillment of the conditions prescribed under the said provision. Before us, the Ld. AR submitted that the assessee is ready and willing to furnish all the relevant details and evidences required for verification of its claim. Considering the facts and circumstances of the case and keeping in view that the rejection has been made primarily for want of supporting documentary evidence and only one opportunity of hearing given to the Assessee Trust. We are of the considered view that one more opportunity deserves to be granted to the Assessee Trust to place all relevant material before the Ld. CIT(E). Therefore, in the

I.T.A Nos. 1441 & 1442/Ahd/2026 Shree Madhav Vidya Niketan Trust interest of substantial justice and without expressing any opinion on the merits of the claim of the assessee, we deem it appropriate to set aside the impugned orders and restore the matter to the file of the Ld. CIT(E) for fresh adjudication. The assessee shall furnish all the documents, explanations and evidences as may be called for by the Ld. CIT(E) and shall fully cooperate in the registration proceedings. The Ld. CIT(E) shall afford adequate opportunity of being heard to the assessee and thereafter pass a speaking order in accordance with law. Accordingly, the impugned orders are set aside and the matter is restored to the file of the Ld. CIT(E) for de novo consideration. The ground raised by the assessee is allowed for statistical purposes.

8.

In the result, the appeals filed by the assessee are allowed for statistical purposes.

Order pronounced in the open court on 12-06-2026

Sd/- Sd/- (NARENDRA PRASAD SINHA) (TR SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 12/06/2026 a.k. आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद 4

More judgments on Section 12AB

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

Recent GST High Court judgments

Search GST case law →