SHETH LADHA ANANDJI SANGH SAMAST DHAMDAKA,AT AND POST DHAMADKA vs. CIT (EXEMPTION), AHMEDABAD, AHMEDABAD, GUJARAT

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ITA 884/AHD/2026Status: DisposedITAT Ahmedabad06 May 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee did possess a valid registration under Section 12AB(1)(b) issued prior to the rejection. The CIT(E) had erred in rejecting the application without proper verification and without providing an opportunity of being heard.

What were the facts?

The assessee filed an application in Form 10AB for renewal of registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application, deeming it non-maintainable as the assessee allegedly did not possess valid registration for five consecutive years.

What were the issues?

Whether the CIT(E) correctly rejected the application for renewal of registration as non-maintainable, and whether principles of natural justice were followed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Bhavin Shah, AR
For Respondent: Shri Alpesh Parmar, CIT-DR
Hearing: 27.04.2026Pronounced: 06.05.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad, (in short “CIT(E)”) dated 17.01.2026 in the proceeding u/s 12A(1)(ac)(ii) of the Income Tax Act.

2.

The brief facts of the case are that the assessee had filed an application in Form No. 10AB for renewal of registration of the Trust u/s. 12A(1)(ac)(ii) of the Act, which was rejected by the Ld. CIT(E) vide the impugned order.

ITA No. 884/Ahd/2026 Sheth Ladha Anandji Sangh Samast Dhamdaka Vs. CIT(E) 2 3. Aggrieved with order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal.

1.

The Learned CIT (Exemption), Ahmedabad has erred in law and on facts in rejecting the application filed by the Appellant in Form 10AB by treating the same as non-maintainable. 2. The Learned CIT (Exemption) has failed to appreciate that the Appellant was already granted valid registration under section 12AB(1)(b) vide order dated 21/03/2024, which was in force at the time of filing the application 3. The Learned CIT (Exemption) has erred in observing that the Appellant did not possess valid registration for five consecutive years, which is factually incorrect and contrary to the material available on record 4. The Learned CIT (Exemption) has passed the impugned order without verifying the registration granted under Form 10AD and without proper application of mind. 5. The impugned order is arbitrary, unjustified, bad in law and liable to be quashed. 6. The Appellant craves leave to add, amend, alter or withdraw any ground of appeal at the time of hearing. . . 4. We have heard Shri Bhavin Shah, the Ld. Counsel of the assessee and Shri Alpesh Parmar, the Ld. CIT-DR. The assessee had made application in Form 10AB for renewal of registration of the Trust u/s 12A(1)(ac)(ii) of the Act. The Ld. CIT(E) has given a finding that in order to avail the benefit of section u/s 12A(1)(ac)(ii) of the Act, the applicant should be “registered” and if the period of registration is due to expire then the application should be made at least six months prior to the said period. Further that the applicant should have a valid registration for five consecutive years either u/s 12A(1)(ac)(i) or u/s. 12AB(1)(b) of the Act, under the new regime of registration effective from 01.04.2021. The Ld.

ITA No. 884/Ahd/2026 Sheth Ladha Anandji Sangh Samast Dhamdaka Vs. CIT(E) 3 CIT(E) had held the application of the assessee as non-maintainable for the reason that the assessee was not in possession of any such valid registration.

5.

The contention of the assessee is that it had a valid registration issued u/s. 12AB(1)(b) of the Act dated 21.03.2024 valid for A.Ys. 2022- 23 to 2026-27, a copy of which has been brought on record in the paper- book filed by the assessee. It is found that the said registration certificate was issue by the Ld. CIT(E), Ahmedabad on 21.03.2024 vide DIN & Notice No: ITBA/EXM/F/EXM44/2023-24/1063095873(1). It is thus found that the assessee had a valid registration u/s. 12AB(1)(b) of the Act and, therefore, the Ld. CIT(E) was not correct in rejecting the application of the assessee as non-maintainable. It is further noticed that the CIT(E) had rejected the application of the assessee without allowing any opportunity of being heard to the assessee which was against the principles of natural justice. Such an action on the part of the Ld. CIT(E) is not appreciated. Before rejecting the application, he should have allowed an opportunity of being heard to the assessee and inquired from the assessee about the registration of the assessee Trust. Considering the fact that the assessee had a valid registration u/s. 12AB(1)(b), we deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to consider the registration certificate issued u/s. 12AB(1)(b) of the Act on 21.03.2024 and thereafter renew the registration of the Trust u/s. 12A(1)(ac)(ii) of the Act, subject to fulfilment of other conditions as per the provision of the Act.

ITA No. 884/Ahd/2026 Sheth Ladha Anandji Sangh Samast Dhamdaka Vs. CIT(E)

6.

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

Order pronounced in the Court on 06/05/2026 at Ahmedabad.

Sd/- Sd/- (SANJAY GARG) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 06th May, 2026 Neelesh,Sr. PS (True Copy) आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : अ�ेिषत 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड� फाईल /Guard file. आदेशानुसार/BY ORDER, आदेशानुसार आदेशानुसार आदेशानुसार

पंजीकार (Dy./Asstt.Registrar) उप उप/सहायक उप उप सहायक सहायक पंजीकार सहायक पंजीकार पंजीकार आयकर अपीलीय आयकर अपीलीय अिधकरण अिधकरण, अहमदाबाद अहमदाबाद / ITAT, Ahmedabad आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण अहमदाबाद अहमदाबाद

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