SHREE SATYANARAYAN MANDIR TRUST,AMBAVADI, AHMEDABAD vs. COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD, VEJALPUR, AHMEDABAD

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ITA 1435/AHD/2026Status: DisposedITAT Ahmedabad22 June 2026AY 2027-284 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee had a reasonable cause for not complying with the notices due to the demise of their erstwhile auditor. Therefore, the matter was remanded back to the CIT(E) for fresh consideration.

What were the facts?

The assessee, Shree Satyanarayan Mandir Trust, applied for registration under section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) rejected the application due to non-compliance and failure to submit required details.

What were the issues?

Whether the rejection of the registration application was justified given the circumstances of non-compliance and whether the assessee had a reasonable cause for the same.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE- & SHRI RAHUL CHAUDHARY

For Appellant: Shri Divyakant Parikh, AR
For Respondent: Shri Ram Tiwari, CIT. DR
Hearing: 18.06.2026Pronounced: 22.06.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

The captioned appeal has been filed by the assessee against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad dated 08.03.2026, whereby the application of the assessee for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 was rejected.

ITA No. 1435/Ahd/2026 Asst. Year : NA - 2–

2.

The assessee has raised the following grounds of appeal:

1.

The learned COMMISSIONER OF INCOME TAX (EXMEPTION) AHMEDABAD has grievously erred both in law and on facts in passing an order dated 08.03.2026 rejecting the application of appellant seeking Registration of Charitable Trust filed in Form 10AB on the ground that the appellant had not filed submissions/details/documents. The appellant Trust was duly established since 20.07.1971 and was also registered under Charitable Trust Act and also, registered in FORM 10AC for A.Y. 2022-23 to 2026-27. Under IT Act The rejection is unjustified it be so held now. 2. The appellant had filed relevant documents with the application filed but could not comply with a notice dated 21.02.206 which was served on email ID of erstwhile auditors namely CA Vipul Navinchadra shah who had died and hence the notice could not be replied. 3. The appellant has through present Trustees have appointed new Auditors, M/S DINV & CO, Chartered Accountants. Partner of M/S DINV & CO, CA Jayesh Parikh who informed the appellant while surfing the Income tax Portal about the said notice and hence there was a reasonable cause in not complying/replying the said notice. 4. The activities of the Trust are genuinely carried out year after year and are in consonance with the Objects of the Trust and no non-compliance with any other laws being there, the Registration ought to be allowed as prayed. 5. Considering the reasonable cause, the appellant could not comply with notice and since no further notice granting adequate opportunity had been granted, the rules of natural justice have not been adhered to while rejecting, application and cancelling registration. It be so held now and order passed by CIT (EXEMPTION) be set aside.

6.

The appellant craves leave to add, alter, modify or delete any of the grounds at the time of hearing.

3.

The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. The Ld. CIT(E) rejected the application for registration u/s.12AB(1)(b)(ii)(B) of the

ITA No. 1435/Ahd/2026 Asst. Year : NA - 3– I.T Act, 1961, since the assessee-trust remained non-compliant and failed to submit/explain genuineness of the activities of the Trust.

4.

Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.

5.

At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld.CIT(E) rejected the application of the assessee on the ground that that the assessee-trust has neither filed any submission nor sought any adjournment. Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.

6.

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

The order is pronounced in the open Court on 22.06.2026

Sd/- Sd/- (RAHUL CHAUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 22.06.2026 MV

ITA No. 1435/Ahd/2026 Asst. Year : NA - 4–

आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file.

आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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