SHRI STHANAKVASI JAIN SANGH ,THANGADH vs. CIT(EXEMPTION) AHMEDABAD, AYKAR BHAVAN,VEJALPAR,AHMEDABAD

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ITA 628/RJT/2026Status: DisposedITAT Rajkot12 June 2026AY 2026-274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal allowed the appeal for statistical purposes, remanding the matter back to the CIT(E). This was to provide the assessee with another opportunity to be heard and comply with the requirements.

What were the facts?

The assessee trust applied for registration under Section 12AB. The CIT(E) rejected the application due to non-compliance by the assessee after issuing a notice. The assessee claimed the notice was sent to an outdated email and they were not conversant with online filing procedures.

What were the issues?

Whether the rejection of the registration application under Section 12AB was valid when the assessee claimed improper service of notice and lack of opportunity to comply. The issue also involves adherence to principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

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

For Appellant: Shri Manalee N. Kamdar, Ld. A.R
For Respondent: Shri Sanjay Punglia, Ld. CIT-DR
Hearing: 20/05/2026Pronounced: 12/06/2026

PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER:

This appeal is filed by the Assessee as against the order dated 08.03.2026 passed by Commissioner of Income Tax (Exemption), Ahmedabad (in short “Ld. CIT(E)”) denying registration under section 12AB 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 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 compliance was made by the assessee, the Ld. CIT(E) had rejected the application of the assessee

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vide the impugned order dated 08.03.2026 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. The learned CIT E has erred in passing the order dated 08.03.2026 rejecting the application for registration us 12AB without providing proper and reasonable opportunity of being heard.

2.

The learned CIT E has failed to appreciate that the notice was sent on the email ID of the earlier Chartered Accountant and not on the updated email ID of the Appellant available on the income tax portal, resulting in improper service of notice.

3.

The learned CIT E has erred in proceeding exparte and concluding that no compliance was made, without verifying whether the notice was actually served on the Appellant.

4.

The learned CIT E has rejected the application without examining the objects and activities of the Appellant trust.

5.

The order passed is in violation of the principles of natural justice and is liable to be set aside.

6.

The impugned order has been passed in a summary manner and without proper application of mind, and is therefore bad in law.

7.

The Appellant craves leave to add, alter, amend OR withdraw any ground of appeal at the time of hearing.”

4.

Shri Manglee N. Kamdar, the Ld. AR of the assessee submitted that the Ld. CIT(E) had allowed only one opportunity on 21.02.2026. 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.

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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 Sanjay Punglia, 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.

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 in the Court on 12.06.2026 at Ahmedabad

Sd/- Sd/- (NARENDRA P. SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad, dated 12/06/2026 ak आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to :

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1.

अपीलाथ� / The Appellant 2. ��यथ� / The Respondent 3. संबं�धत आयकर आयु त / Concerned CIT 4. आयकर आयु त ( अपील ) / The CIT(A)- 5. �वभागीय ��त�न�ध , आयकर अपील(य अ�धकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड. फाईल /Guard file आदेशानुसार/ BY ORDER, उप/सहायक पंजीकारDy./Asstt. Registrar) आयकर अपील�य अ�धकरण, राजोकट / ITAT, Rajkot

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