PUNIT SEVA SAMAJ,RAJKOT vs. CIT(EXEMPTION), AHMEDABAD

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ITA 494/RJT/2026Status: DisposedITAT Rajkot11 June 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal allowed the appeal, setting aside the CIT(E)'s order. The assessee was granted another opportunity to present their case before the CIT(E).

What were the facts?

The assessee trust applied for registration under Section 12AB of the Income Tax Act. The CIT(E) rejected the application due to non-compliance with a request for details, despite the assessee claiming lack of email access and procedural knowledge.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without providing sufficient opportunity for compliance, and if the assessee should be granted another chance.

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 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.494/Rjt/2026 (Assessment Year: 2026-27) Punit Seva Samaj, Vs. Commissioner of Income Tax (Exemption), Ramnath Para, Rajkot-360001 Ahmedabad [PAN No.AAATP1921B] (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 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 on 23.01.2026 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 compliance was made by the assessee, the Ld. CIT(E) had rejected the

- 2 - ITA No.494/Rjt/2026 Punit Seva Samaj vs. CIT(E) Asst.Year – 2026-27 application of the assessee 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 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 12AB 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 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

- 3 - ITA No.494/Rjt/2026 Punit Seva Samaj vs. CIT(E) Asst.Year – 2026-27 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 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 : 1. अपीलाथ� / The Appellant ��थ� / The Respondent 2. संबंिधत आयकर आयु� / Concerned CIT 3. 4. आयकर आयु� अपील / The CIT(A)- ( ) 5. िवभागीय �ितिनिध आयकर अपीलीय अिधकरण राजोकट/DR,ITAT, Ahmedabad, , , 6. गाड� फाईल / Guard file आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, राजोकट / ITAT, Rajkot

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