SHUBH ASHISH FOUNDATION TRUST,BOPAL, AHMEDABAD vs. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), AHMEDABAD

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ITA 1063/AHD/2026Status: DisposedITAT Ahmedabad21 May 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) had not considered the submissions filed by the assessee. Therefore, the matter was set aside to the CIT(E) to allow another opportunity for hearing and re-adjudication.

What were the facts?

The assessee filed an application for registration under Section 12A(1)(ac)(ii). The CIT(E) rejected the application for non-compliance after issuing a notice. The assessee claimed to have filed submissions and documents, but they were allegedly not considered.

What were the issues?

Whether the CIT(E) erred in rejecting the application without considering the assessee's submissions and whether principles of natural justice were violated.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Darshan Shah, AR
For Respondent: Shri Ajay Pratap Singh, CIT-DR
Hearing: 11.05.2026Pronounced: 21.05.2026

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 09.03.2026 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 in Form No. 10AB on 12.09.2025. The Ld. CIT(E) vide notice dated 24.02.2026 had called for certain documentary evidences for the last three years and the due date of compliance was 03.03.2026. As no

ITA No. 1063/Ahd/2026 Shubh Ashish Foundation Trust Vs. CIT(E) 2

compliance was made by the assessee, the Ld. CIT(E) had rejected the application of the assessee vide the impugned order.

3.

Aggrieved with the order of the CIT(E), the assessee is in appeal before us. The following grounds have been raised in this appeal:

Violation of Principles of Natural Justice & Non-Consideration of Evidence: The Ld. CIT(E) has erred in law and on facts in passing the impugned rejection order dated 09/03/2026 without considering the detailed submissions and documentary evidence already placed on record by the Appellant via Acknowledgement Number 524171921090326. Factually Incorrect Observations: The Ld. CIT(E) has erred in recording a factually incorrect finding that the Appellant "neither filed any submission/details/documents nor it has sought any adjournment", despite the Appellant having successfully uploaded a detailed reply, Trust Deed, 12AA Certificate, and Annual Reports on the e-filing portal. Unjustified Rejection on Merits: The Ld. CIT(E) is unjustified in rejecting the application under Section 12A(1)(ac)(ii), ignoring the genuine charitable nature of the Appellant's activities and the extensive proofs submitted. The Ld. CIT(E) ought to have decided the application on its merits after taking cognizance of the submitted evidence rather than erroneously treating the matter as non-compliant. The Appellant craves leave to add, alter, amend, or withdraw any of the above grounds of appeal either before or during the course of the hearing of the appeal.

4.

Shri Darshan Shah, the Ld. AR of the assessee submitted that in response to show cause notice dated 24.02.2026 of the Ld. CIT(E), the assessee had filed an adjournment application on 27.02.2026 and sought adjournment till 12.03.2026. Thereafter, the assessee had uploaded all the required documents on 09.03.2026. However, the Ld. CIT(E) had passed a rejection order on the same day i.e. on 09.03.2026. The Ld. AR has pointed out that the online response filed by the assessee was viewed

ITA No. 1063/Ahd/2026 Shubh Ashish Foundation Trust Vs. CIT(E) 3 by the Department on 23.03.2026. Further that though the order of the Ld. CIT(E) was dated 09.03.2026, it was uploaded on the system only on 25.03.2026. The Ld. AR submitted that the order was passed by the Ld. CIT(E) without taking into account and considering the submissions already filed by the assessee on 09.03.2026. He, therefore, requested that the matter may be set aside to the file of Ld. CIT(E) with a direction to consider the submissions already filed by the assessee and thereafter re- adjudicate the matter after allowing an opportunity of being heard to the assessee.

5.

Per contra, Shri Ajay Pratap Singh, 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 submissions of the assessee and also gone through the evidences brought on record in the paper-book. It is found that the assessee did file an online response on 09.03.2026, which was not considered by the Ld. CIT(E) in his order. If the assessee had sought an adjournment on 27.02.2026, the Ld. CIT(E) should have allowed at least one more opportunity to the assessee for making the compliance. It was not correct on the part of Ld. CIT(E) to reject the application of the assessee after allowing a single opportunity, particularly when the assessee had sought adjournment. We, therefore, deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to allow another opportunity of being heard to the assessee. The assessee will be free to re-submit the documents and evidences as already filed on 09.03.2026 or any other material as deemed fit. The Ld. CIT(E) should re-adjudicate the matter after considering the evidences

ITA No. 1063/Ahd/2026 Shubh Ashish Foundation Trust Vs. CIT(E)

brought on record and the reply of the assessee, in accordance with the provisions of law.

7.

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

Order pronounced in the Court on 21/05/2026 at Ahmedabad.

Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 21st May, 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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