JAN SHIKSHAN SANSTHAN SURAT,SURAT vs. CIT(EXEMPTION), AHMEDABAD

The brief facts of the case are that the assessee had filed an application in Form No. 10AB for registration of Trust u/s. 12A of the Act. The Ld. CIT(E) had called for certain details from the assessee in order to examine the genuineness of the activities of the trust and to satisfy himself that the activities were in consonance with the objects of the trust. As no

Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal:

Shri Manoj Makhania, the Ld. AR of the assessee submitted that Ld. CIT(E) had allowed only one opportunity of hearing on 03.01.2026. Further, he explained that the notice was sent on the e-mail which was lying in the spam Folder of mailbox, which could not be accessed within the due date. The Ld. AR explained that the Ld. CIT(E) had passed the order without taking into account the substantial details and documents

Per contra, Shri Mukesh Jain, the Ld. CIT-DR, supported the order of 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.

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 section 12A of the Income-tax Act, 1961 came to be rejected by the Ld. CIT(E) primarily on account of non-compliance with the notice issued seeking certain documents and clarifications. From the records, it is evident that only one effective opportunity was granted to the assessee. The interest of natural justice cannot be served by rejecting the application of the assessee by allowing only one opportunity. Though the Ld. CIT(E) has mentioned in the order that notices were issued from time of time, we don’t find reference of any notice other than the notice dated 03.01.2026. Considering that the assessee is a charitable trust seeking registration under the provisions of the Act and that the issue relates to the examination of its objects and activities, we are of the considered view that one more opportunity deserves to be afforded to the assessee to place the requisite material before the Ld. CIT(E). The principles of natural justice require that a reasonable and effective opportunity of being heard be granted before an adverse decision is taken. In the facts and circumstances of the present case, and without expressing any opinion on the merits of the application, we deem it appropriate, in the interest of justice, to set aside the impugned order 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

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