VYOTSAV FOUNDATION,AHMEDABAD vs. COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD , AHMEDABAD

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ITA 890/AHD/2026Status: DisposedITAT Chandigarh12 June 20264 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 CIT(E) for fresh consideration. The assessee would be given an opportunity to submit their explanations and documents.

What were the facts?

The assessee trust applied for registration under section 12A and approval under section 80G. The CIT(E) rejected both applications for non-compliance and failure to submit required details.

What were the issues?

Whether the CIT(E) erred in rejecting the applications for registration and approval without providing an adequate opportunity for the assessee to submit details and explanations.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 80G(5)(iii)

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 Pamil H Shah, AR
For Respondent: Shri Ram Tiwari, CIT. DR
Hearing: 10.06.2026Pronounced: 12.06.2026

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

These two appeals have been filed by the assessee against the separate orders passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad both dated 09.03.2026, whereby the application of the assessee for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 in ITA No.890/Ahd/2026 and the application for approval under section 80G(5)(iii) of the Act in ITA No.891/Ahd/2026 were rejected.

ITA Nos. 890- 891/Ahd/2026 Asst. Year : NA - 2–

ITA No.890/Ahd/2026

2.

The assessee has raised the following grounds of appeal:

(1) The learned CIT(E) has erred in law and on facts of the case, in rejecting the application for approval under section 12A of the Act without hearing and for want of details. (2) The appellant craves for leave to add, amend or alter all the grounds on or before final hearing of apperal. In view of the above grounds and such other grounds as may be urged at the time of hearing, the appellant most respectfully prays that your honour may kindly set aside the order passed by the Learned CIT(E) and grant approval under section 12A of the Act;

ITA No.891/Ahd/2026

3.

The assessee has raised the following grounds of appeal:

(1) The learned CIT(E) has erred in law and on facts of the case, in rejecting the application for approval under section 80G of the Act without hearing and for want of details. (2) The appellant craves for leave to add, amend or alter all the grounds on or before final hearing of appeal. In view of the grounds of appeal stated hereinabove, the appellant most respectfully prays that your honour may kindly set aside the order passed by the learned CIT(E) rejecting the application for approval under section 80G of the Act;

4.

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.12A(1)(ac)(iii) of the I.T

ITA Nos. 890- 891/Ahd/2026 Asst. Year : NA - 3– Act, 1961, since the assessee-trust remained non-compliant and failed to submit/explain genuineness of the activities of the Trust.

5.

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

6.

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 application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.

ITA No.891/Ahd/2026

7.

Since we have remanded the issue to the Ld.CIT(E) in ITA No.890/Ahd/2026 against rejecting of application u/s.12A(1)(ac)(iii) of the Act, we also set-aside the issue for approval of registration u/s.80G(5)(iii) of the Act in ITA No.891/Ahd/2026 for fresh consideration.

ITA Nos. 890- 891/Ahd/2026 Asst. Year : NA - 4– 8. In the result, both the appeals of the assessee are 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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