SHRI KHODIYAR MATANU MANDIR TRUST,DEVRASAN vs. INCOME TAX DEPARTMENT, CIT (EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 897/AHD/2026Status: DisposedITAT Ahmedabad12 June 20263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the interests of justice would be served by remanding the matter back to the Commissioner. The Commissioner is to reconsider the application afresh after taking into account the submissions and explanations provided by the assessee.

What were the facts?

The assessee, a Trust, applied for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected the application, citing non-compliance and failure to explain the genuineness of the trust's activities.

What were the issues?

Whether the Commissioner provided a reasonable opportunity of being heard and whether the rejection of the registration application was hasty without affording sufficient opportunities to the assessee.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12AB(1)(b)(ii)(B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE- & SHRI RAHUL CHAUDHARY

For Appellant: Shri Hasmukh V Doshi, AR
For Respondent: Shri Ram Tiwari, CIT. DR
Hearing: 10.06.2026Pronounced: 12.06.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

The captioned appeal has been filed by the assessee against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad dated 09.03.2026, whereby the application of the assessee for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 was rejected.

2.

The assessee has raised the following grounds of appeal:

1.

On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has not

ITA No. 897/Ahd/2026 Asst. Year : NA - 2– provided reasonable opportunity of being heard as provided under Second Proviso to Section 12AB(1)(b)(ii)(B) of the Act. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has hurriedly rejected the application in Form 10AB made by assessee by giving only one notice and not given further opportunity. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.

3.

The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. The Ld. CIT(E) rejected the application for registration u/s.12AB(1)(b)(ii)(B) of the I.T Act, 1961, since the assessee-trust remained non-compliant and failed to submit/explain genuineness of the activities of the Trust.

4.

Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.

5.

At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld. CIT(E) rejected the application of the assessee on the ground that that the assessee-trust has neither filed any submission nor sought any adjournment. Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the

ITA No. 897/Ahd/2026 Asst. Year : NA - 3– application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.

6.

In the result, the appeal of the assessee is allowed for statistical purposes.

The order is pronounced in the open Court on 12.06.2026

Sd/- Sd/- (RAHUL CHAUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 12.06.2026 MV आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. संबंिधत आयकर आयु� / Concerned CIT 3. 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, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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