SHREE DAMAN VAPI PARSI JARTHOSTY ANJUMAN,DAMAN vs. CIT(EXEMPTION) , AHMEDABAD

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ITA 778/SRT/2026Status: DisposedITAT Surat30 June 202610 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(Exemption) may not have afforded sufficient opportunities to the assessees. Considering the importance of registration and in the interest of justice, the matters were restored to the CIT(Exemption) for fresh consideration.

What were the facts?

Several trusts and institutions applied for registration under Section 12A/12AB of the Income Tax Act. The CIT(Exemption) rejected their applications primarily due to non-compliance in furnishing required details and documents.

What were the issues?

Whether the CIT(Exemption) properly afforded opportunities to the assessees before rejecting their applications for registration under Section 12A/12AB.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Respondent: Shri Aashish Pophare, CIT (DR)
Hearing: 30.06.2026Pronounced: 30.06.2026

आदेश / O R D E R

Per Bench:

The captioned appeals have filed by different assessees/appellants, the details of these appeals are as under:

ITA No. Impugned order DIN of order Dated Passed by 1 24.12.2025 CIT(Exemption), 48/SRT/2026 ITBA/EXM/F/EXM45/2025- 26/1084072419(1) Ahmedabad 2 30.10.2025 CIT(Exemption), 49/SRT/2026 ITBA/EXM/F/EXM45/2025- 26/1082135377(1) Ahmedabad 07.03.2026 CIT(Exemption), 3 774/SRT/2026 ITBA/EXM/F/EXM45/2025- 26/1086999739(1) Ahmedabad 08.03.2026 CIT(Exemption), 4 773/SRT/2026 ITBA/EXM/F/EXM45/2025- 26/1087003300(1) Ahmedabad 08.03.2026 CIT(Exemption), 5 771/SRT/2026 ITBA/EXM/F/EXM45/2025- 26/1087003336(1) Ahmedabad ITA No. Impugned order DIN of order Dated Passed by 6 772/SRT/2026 ITBA/EXM/F/EXM45/2025- 08.03.2026 CIT(Exemption), Ahmedabad 26/1087003340(1) 7 733/SRT/2026 ITBA/EXM/F/EXM45/2025- 08.03.2026 CIT(Exemption), Ahmedabad 26/1087003379(1) 09.03.2026 8 901/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087022367(1) 09.03.2026 9 779/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087041203(1) 08.03.2026 10 780/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087003453(1) 09.03.2026 11 739/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087020365(1) 09.03.2026 12 758/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087012042(1) 08.03.2026 13 718/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087003672(1) 08.03.2026 14 778/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087003745(1) 08.03.2026 15 759/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087003742(1) 09.03.2026 16 756/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087069688(1) 08.03.2026 17 740/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087003567(1) 08.03.2026 18 763/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087003684(1) 09.03.2026 19 793/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087012167(1) 09.03.2026 20 792/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087063293(1) 08.03.2026 21 777/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087004972(1) 09.03.2026 22 776/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087049296(1) 09.03.2026 23 775/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087045461(1) 09.03.2026 24 764/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087037996(1) 08.03.2026 25 555/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087007412(1) 09.03.2026 26 757/SRT/2026 ITBA/EXM/F/EXM45/2025- CIT(Exemption), Ahmedabad 26/1087024791(1) 27 762/SRT/2026 ITBA/EXM/F/EXM45/2025- 09.03.2026 CIT(Exemption), Ahmedabad 26/1087030503(1)

2.

These appeals challenge the respective orders passed by Ld. CIT (Exemption), as detailed in the above table, by which the assessee’s applications for grant of final registration u/s 12A/12AB of Income-tax Act, 1961 [“the Act”] have been rejected and the provisional registrations u/s 12A/12AB, if granted earlier by CPC, have also been cancelled.

3.

Since all these appeals involve identical issues, substantially similar facts, common submissions advanced by the parties and require identical adjudication, they were heard together and are being disposed of by this consolidated order for the sake of convenience.

4.

In all these matters, the Ld. CIT(Exemption) has passed identically styled/worded orders, the only variation is in the dates of opportunities granted to respective assessees. Therefore, at the outset, we would like to re- produce the “Annexure” forming part of the order passed by Ld. CIT(Exemption) in the first-appeal being ITA No. 48/SRT/2026 for reference:

“Annexure (mentioned in row-9 above) The present application for registration (renewal) of the trust has been filed in Form 10AB under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A of Income Tax Act, 1961 as per above details. 2. The procedure for fresh registration of an application made under sub-clause (ii) or sub- clause (iii) or sub-clause (iv) or sub-clause (v) or item (B) of sub-clause (vi) of clause (ac) of sub-section (1) of section 12A is governed by section 12AB(1)(b) of the act. Further, Rule 17A(1) of the Income Tax Rules prescribes the different forms to be filed for making application under various sub-clauses of clause (ac) of sub-section (1) of section 12A of the Income Tax Act for registration of a charitable or religious trust or institution and Rule 17A(2) of the Income Tax Rules lists the documents which shall be attached or submitted with the application made in Form No. 10AB. 3. Notices were issued from time to time as per details given in row no. 10 of table given above requesting to furnish details/documents - which are found to be served/ delivered. 3.1 However, in response to the notices issued; the applicant has neither filed any submission/details/documents nor it has sought any adjournment in this case. Also, documents as per Rule 17A(2) of the Income Tax Rules, 1962 and other details/documents called for by this office were also not submitted. Hence, the applicant/assessee has failed to file documentary evidences to enable me to satisfy about: i. Genuineness of the activities of the trust or institution. ii. That the activities of trust or institution are in consonance with the objects of the trust or institution. iii. That other laws material for the purpose of achieving objects are complied with. 4. In view of the above, the present application filed in Form No.10AB for renewal is rejected.” 5. During hearings before us, the Ld. ARs appearing for the respective assessees referred to the impugned orders and advanced almost similar submissions and contentions. It was submitted that the Ld. CIT(Exemption) has passed ex-parte order while granting only one effective opportunity to the assessee, which the assessee could not avail. It was further submitted that the impugned orders have been passed without examining the applications on merits. It was also emphasised that the registration u/s 12A/12AB is fundamental and necessary for the existence and functioning of assessees who are engaged in charitable/religious activities for the benefit of the public. It was further submitted that the assessees are ready with the requisite details and documents for making an effective representation before Ld. CIT(Exemption). It was also assured that if one more opportunity is given, the assesees shall fully co-operate and make effective representation before Ld. CIT(Exemption). Accordingly, it was prayed that in the interest of justice and fair play, the present matters be restored to the file of Ld. CIT(Exemption) for a meritorious adjudication after affording reasonable opportunity of hearing to assessees.

6.

Per contra, Ld. DR for revenue submitted that there is no infirmity in the orders passed by Ld. CIT(Exemption). He submitted that the assessees voluntarily filed applications to Ld. CIT(Exemption) seeking registration u/s 12A/12AB, therefore it was incumbent upon them to stay diligent and make representation before Ld. CIT(Exemption) when called upon. He submitted that the Ld. CIT(Exemption) has given opportunity to assessees but the assessees failed to avail the same. Therefore, the Ld. CIT(Exemption) could not get necessary satisfaction for granting registration due to the failure of assessees. He, therefore, submitted that rejection of applications by Ld. CIT(Exemption) was fully justified and the impugned orders be upheld.

7.

We have considered the rival submissions of both sides and carefully perused the case files including the impugned orders passed by Ld. CIT(Exemption). We find that that the rejection of the applications by Ld. CIT(Exemption) are primarily on account of non-compliances by the assessees in furnishing the requisite details and documents. At the same time, on a perusal of Column No. 10 of the impugned orders (main body of Form No. 10AD) passed by Ld. CIT(Exemption), the Ld. CIT(Exemption) appears to have not afforded sufficient opportunities to assessees. Considering the nature of proceeding relating to grant of registration u/s 12A/12AB, which has significant consequences for the assessees and in the interest of justice and fair play and also having regard to the fact that the remanding of these matters to the file of Ld. CIT(Exemption) would not cause any prejudice to the revenue/respondent, we are of the view that the assessees should be granted one more effective opportunity to substantiate their applications. Accordingly, we set aside the impugned orders and restore these matters to the file of the Ld. CIT(Exemption) for a fresh consideration. The Ld. CIT(Exemption) shall examine the applications afresh after providing reasonable and adequate opportunities of being heard to assessees. The assessees are also directed to make representation to Ld. CIT(Exemption) and furnish all requisite details and documents including those prescribed under Rule 17A(2) without seeking unnecessary adjournments failing which the Ld. CIT(Exemption) shall be at liberty to pass orders in accordance with law. Ordered accordingly.

8.

Accordingly, all these appeals are allowed for statistical purposes.

Order pronounced in open court immediately after conclusion of hearing and subsequently reduced in writing on the same day of 30/06/2026

Sd/- Sd/- (SUCHITRA KAMBLE) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Surat िदनांक /Dated : 30/06/2026 * Kishore, Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Surat Bench, Surat Page 10 of 10

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