AJVAS FOUNDATION,SURAT vs. INCOME TAX OFFICER, WARD 1, NAVSARI, NAVSARI

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ITA 674/SRT/2026Status: HeardITAT Surat12 June 2026AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal allowed the appeal for statistical purposes, remanding the matter back to the CIT(E) to grant the assessee another opportunity of being heard.

What were the facts?

The assessee filed an application for registration under section 12AB(1)(b)(ii) of the Income Tax Act. The CIT(E) rejected the application due to non-compliance with a request for details, cancelling the provisional registration.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without granting a reasonable opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 12AB(1)(b)(ii),Section 12A(1)(ac)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI T. R. SENTHIL KUMAR & SHRI NARENDRA PRSAD SINHA

For Appellant: Shri Sapnesh Sheth, Advocate
For Respondent: Shri Mukesh Jain, CIT-DR
Hearing: 20/05/2026Pronounced: 12/06/2026

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT (Conducted through E-Court at Ahmedabad) BEFORE SHRI T. R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI NARENDRA PRSAD SINHA, ACCOUNTANT MEMBER I.T.A. No.674/SRT/2026 (Assessment Year: N.A.) Ajvas Foundation, Vs. Income Tax Officer, D-2, Prabhavna Ward-1, Apartment, Pratishtha Navsari Complex, Ambika Niketan SVR College, Surat, Gujart-395007 [PAN No.AAVCA5568P] (Appellant) (Respondent) .. Appellant by : Shri Sapnesh Sheth, Advocate Respondent by : Shri Mukesh Jain, CIT-DR Date of Hearing 20/05/2026 Date of Pronouncement 12/06/2026 O R D E R PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER: This appeal is filed by the Assessee as against the order dated 09.03.2026 passed by Commissioner of Income Tax (Exemption), Ahmedabad (in short “Ld. CIT(E)”) denying registration under section 12AB(1)(b)(ii) of the Income Tax Act (hereinafter referred to as “the Act”).

2.

The brief facts of the case are that the assessee had filed an application for registration of the Trust u/s. 12AB(1)(b)(ii) of the Act. The Ld. CIT(E) had called for certain details on 24.02.2026 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

- 2 - ITA No.674/Srt/2026 A.Y. N.A. compliance was made by the assessee, the Ld. CIT(E) had rejected the application of the assessee vide the impugned order dated 09.03.2026 and the provisional registration granted earlier was also cancelled.

3.

Aggrieved with the rejection order, the assessee is in appeal before us raising the following Grounds of Appeal:

“1. On the facts and circumstances of the case as well as law on the subject, the ld. Commissioner of Income Tax (Exemption) has erred in rejecting the application made by the assessee trust without granting reasonable opportunity of hearing. 2. On the facts and circumstances of the case as well as law on the subject, the ld. Commissioner of Income Tax (Exemption) has erred in rejecting the application filed by the Appellant Trust in form 10AB for grant of approval under section12A(1)(ac)(vi) of the I.T. Act. 3. It is therefore prayed that order of ld. Commissioner of Income-tax (Exemptions) rejecting application of assessee may please be quashed. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 4. Shri Sapnesh Sheth, the Ld. AR of the assessee submitted that the Ld. CIT(E) had allowed only one opportunity on 24.02.2026. The notice was sent on the e-mail but the trustees of the assessee trust were not regular in accessing the e-mail account. Further, they were not conversant with the procedural requirement for filing details online, and as a result no compliance could be made before the Ld. CIT(E). The Ld. AR requested that the assessee may be allowed another opportunity of being heard by setting aside the matter to the file of the Ld. CIT(E).

5.

Per contra, Shri Mukesh Jain, the Ld. CIT-DR, had no objection if the matter was set aside to the file of Ld. CIT(E) for allowing another opportunity to the assessee.

- 3 - ITA No.674/Srt/2026 A.Y. N.A.

6.

We have considered the request of the assessee. The present application was filed for registration of the trust u/s 12AB(1)(b)(ii) of the Act. The Ld. CIT(E) had allowed only one opportunity to the assessee for furnishing certain details and thereafter the application of the assessee was rejected. The interest of natural justice cannot be served by rejecting the application by allowing only one opportunity. Therefore, in the interest Principle of Natural Justice, we, therefore, deem it proper to set aside the matter to the file of Ld. CIT(E) with direction to allow another opportunity of being heard to the assessee. The assessee is also directed to make compliance before the Ld. CIT(E) and produce the documents and evidences as required by the Trust.

7.

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

Order pronounced under proviso of Rule 34(4) of ITAT Rules, 1963 on 12.06.2026

Sd/- Sd/- (NARENDRA P. SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad, dated 12/06/2026 Tanmay, Sr. PS TRUE COPY 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)- ( ) िवभागीय �ितिनिध आयकर अपीलीय अिधकरण राजोकट/DR,ITAT, Ahmedabad, 5. , , गाड� फाईल / 6. Guard file आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, राजोकट / ITAT, Surat

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