SHRI MANAV SEVA SARVAJANIK TRUST,RAJKOT vs. CIT(EXEMPTION), AHMEDABAD

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ITA 493/RJT/2026Status: DisposedITAT Rajkot11 June 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while Section 12A/12AB registration is a prerequisite for 80G approval, the assessee was not given a proper opportunity of hearing. Therefore, the matter was set aside to the CIT(E) for fresh adjudication.

What were the facts?

The assessee trust applied for registration under Section 80G(5) of the Income Tax Act. The CIT(E) rejected the application because the trust did not have a mandatory registration under Section 12A/12AB of the Act.

What were the issues?

Whether the CIT(E) erred in rejecting the 80G application without providing a proper opportunity of hearing, and whether 12A/12AB registration is a mandatory pre-requisite for 80G approval.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A,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 Darshak Thakkar, Ld. A.R
For Respondent: Shri Sanjay Punglia, Ld. CIT-DR
Hearing: 20/05/2026Pronounced: 11/06/2026

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted through E-Court at Ahmedabad) BEFORE SHRI T. R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI NARENDRA PRSAD SINHA, ACCOUNTANT MEMBER I.T.A. No.493/Rjt/2026 (Assessment Year: 2026-27) Shri Manav Seva Sarvajanik Vs. Commissioner of Income Trust, Tax (Exemption), Nakalank Seri Nakalank Ahmedabad Mandir, Bedinaka, Rajkot-360001 [PAN No.AADTS9168C] (Appellant) .. (Respondent) Appellant by : Shri Darshak Thakkar, Ld. A.R. Respondent by : Shri Sanjay Punglia, Ld. CIT-DR Date of Hearing 20/05/2026 Date of Pronouncement 11/06/2026 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 80G(5) of the Income Tax (hereinafter referred to as “the Act”).

2.

The brief facts of the case are that the assessee had filed an application for approval of the Trust u/s. 80G(5) of the Act filed in Form No. 10AB. The Ld. CIT(E) had refusing to grant registration u/s 80G of the Act because the trust did not have a valid registration u/s. 12A/12AB of

- 2 - ITA No.493/Rjt/2026 Shri Manav Seva Sarvajanik Trust vs. CIT(E) Asst.Year – 2026-27 the Act, which is mandatory condition for getting approval u/s. 80G of the Act. Therefore, the Ld. CIT(E) had rejected the application of the assessee.

3.

Aggrieved against the rejection order of the Ld. CIT(E), the assessee is in appeal before us raising the following Grounds of Appeal:

“1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. That the learned Commissioner of Income Tax Exemptions, Ahmedabad has erred in law and on facts in refusing to grant registration U/S 80G of the Income Tax Act, 1961. 3. Your Honours appellant craves leave to add, to amend, alter, OR withdraw any OR more grounds of appeal on OR before the hearing of appeal.” 4. Shri Darshak Thakkar, the Ld. AR of the assessee submitted that the Ld. CIT(E) had rejected the application on the ground that assessee did not have valid registration u/s. 12A/12AB of the Act, without taking into account the substantial details and documents available with the Department. He explained that no hearing opportunity was given to the assessee trust to explain its case and registration granted u/s. 12AB of the Act. He, therefore, requested that the present matter may be set aside to the file of the Ld. CIT(E) for deciding the matter afresh.

5.

Shri Sanjay Punglia, the Ld. CIT-DR, had no serious objection, if the matter is set aside to the file of Ld. CIT(E) for allowing another opportunity of hearing to the assessee trust.

6.

We have considered the request of the assessee. The application of the assessee was rejected only for the reason that the assessee did not have any valid order for registration u/s. 12A/12AB of the Act, which is

- 3 - ITA No.493/Rjt/2026 Shri Manav Seva Sarvajanik Trust vs. CIT(E) Asst.Year – 2026-27 mandatory condition for getting 80G approval. The Ld. CIT(E) had also relied upon the order of the Gujarat High Court in the case of CIT(Exemption) Vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust [122 taxmann.com 98], where it has been held that the registration u/s. 12A of the Act is a pre-requisite for grant of approval u/s. 80G of the Act. It is found that the issue of registration u/s. 12AB of the Act, was granted on 01.04.2026, but no opportunity of hearing was given to the assessee trust to explain its case. We, therefore, in the Principles of Natural Justice deem it is proper to set aside the present matter to the file of Ld. CIT(E) with a direction to re-adjudicate the application of the assessee trust by giving proper opportunity of hearing.

7.

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

Order pronounced in the Court on 11.06.2026 at Ahmedabad.

Sd/- Sd/- (NARENDRA P. SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad, dated 11/06/2026 Tanmay, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. 2. ��थ� / The Respondent संबंिधत आयकर आयु� / Concerned CIT 3. आयकर आयु� अपील 4. ( ) / 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, Rajkot

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