PUJAY SANT MAMAPIR BAPUNE E DWARKA TRUST,RAJKOT vs. COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

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ITA 685/RJT/2026Status: DisposedITAT Rajkot12 June 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal allowed the appeal, setting aside the CIT(Exemption)'s order. The assessee was granted another opportunity to present the required details to the CIT(Exemption).

What were the facts?

The assessee trust applied for registration under section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application due to non-compliance by the assessee with requests for details regarding the genuineness of its activities.

What were the issues?

Whether the rejection of registration under section 12AB was justified without providing adequate opportunity, and the imposition of exit tax under section 115TD.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 115TD

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 Rajendra Bose, Ld. A.R, 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 07.03.2026 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 07.03.2026 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 law and facts in rejecting the application of registration u/s 12A of the Income Tax Act, 1961 2. The order passed by CIT(E) is bad in law and against principles of natural justice. 3. Learned CIT(E) erred in imposing exit tax under section 115TD of Income Tax Act, 1961. 4. The appellant craves leave to add/alter grounds of appeal.”

4.

Shri Rajendra Bose, the Ld. AR of the assessee submitted that the Ld. CIT(E) had allowed only one opportunity on 23.01.2026. 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 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

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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 provision of Rule 34 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 ak आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 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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