PRAYATNA FOUNDATION BHAVNAGAR,BHAVNAGAR vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 1003/AHD/2026Status: DisposedITAT Ahmedabad03 June 20263 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) rejected the application without providing the assessee an opportunity to be heard, violating the principles of natural justice. Therefore, the order was set aside for fresh adjudication.

What were the facts?

The assessee filed an application for renewal of registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application because the trust did not have a valid registration under Section 12A/12AB, which is a mandatory condition.

What were the issues?

Whether the rejection of the registration application without affording an opportunity of being heard to the assessee is valid. Whether a valid registration under Section 12A/12AB is a prerequisite for approval under Section 12A(1)(ac)(ii).

Which sections of the Income-tax Act were involved?

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

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 Manoj Kumar P Gohil, AR
For Respondent: Shri Alpesh Parmar, CIT-DR
Hearing: 30.04.2026Pronounced: 03.06.2026

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 16.01.2026 in the proceeding u/s 12A(1)(ac)(ii) of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed an application for renewal of registration of the Trust u/s. 12A(1)(ac)(ii) of the Act. The Ld. CIT(E) had rejected the application for the reason that the trust did not have a valid registration u/s. 12A/12AB of the Act, which is a mandatory condition for granting approval u/s. 12A(1)(ac)(ii) of the Act.

ITA No. 1003/Ahd/2026 Prayatna Foundation Bhavnagar Vs. CIT(E) 2 3. Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal:

1 Ld. CIT(E) has erred in law and on facts of the case in passing the impugned order without giving proper attention on documents submitted/available with Income Tax Portal Like ITRs and Forms. 2. Ld CIT(E) has erred in law and on facts of the case in rejecting the provisional registration of the appellant u/s. 12A of the Act. 3. Appellant craves leave to add, alter or withdraw any of the grounds of appeal at or before the time of hearing.

4.

Shri Manoj Kumar P Gohil, 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. 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 Alpesh Parmar, 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 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 mandatory condition for getting approval u/s. 12A(1)(ac)(ii). It is seen that the Ld. CIT(E) didn’t allow any opportunity of being heard to the assessee before rejecting the application of the assessee. The principles of natural justice require that a reasonable and effective opportunity of being heard be granted before an adverse decision is taken. In the facts

ITA No. 1003/Ahd/2026 Prayatna Foundation Bhavnagar Vs. CIT(E)

and circumstances of the present case, and without expressing any opinion on the merits of the application, we deem it appropriate, in the interest of justice, to set aside the impugned order and restore the matter to the file of the Ld. CIT(E) for fresh adjudication. The assessee shall furnish all the documents, explanations and evidences as may be called for by the Ld. CIT(E) and shall fully cooperate in the proceedings. The Ld. CIT(E) shall afford adequate opportunity of being heard to the assessee and thereafter pass a speaking order in accordance with law. Accordingly, the impugned order is set aside and the matter is restored to the file of the Ld. CIT(E) for de novo consideration. The grounds raised by the assessee are allowed for statistical purposes.

7.

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

Order pronounced in the Court on 03/06/2026 at Ahmedabad.

Sd/- Sd/- (SANJAY GARG) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 03rd June, 2026 Neelesh, Sr. P.S (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 आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अहमदाबाद अिधकरण अहमदाबाद अहमदाबाद / ITAT, Ahmedabad अहमदाबाद

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