SHRI ZALAWAR SAMASTA SATWARA BOARDING SURENDRANAGAR,SURENDRANAGAR vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

The Ld. CIT(E) failed to appreciate that the notice of hearing dated 12/02/2026, which formed the basis of the ex-parte order, was not duly served upon the appellant, thereby denying the appellant a reasonable and effective opportunity of being heard.

It is submitted that the notice was electronically served to the email address aats7185a@vshahandco.com, which belongs to the appellant's previous consultant.

The appellant had changed its professional consultant from CA Nalin D. Raval to A. D. Songra& Co. This is evidenced by the fact that the email ID mentioned in the ITR for the FY 2023-24 & for the FY 2024-25, it was updated was ndraval036@gmail.com, to ca ashvinsongra@gmail.com.

Due to an inadvertent oversight, the email address was not updated on the income tax e-filing portal. Consequently, the statutory notice was sent to the old, inactive email address.

The previous consultant, for reasons unknown to the appellant, failed to forward the said notice to the appellant or its current authorized representative. As a result of this communication gap, the appellant remained completely unaware of the scheduled hearing and the requirement to submit documents, leading to non-compliance. Ground No. 3: Alternative Ground for Remanding the Matter

Without prejudice to the above grounds, it is prayed that the matter may be remanded back to the file of the Ld. CIT(E) with a direction to pass a fresh order on merits after affording the Appellant an adequate and effective opportunity of being heard. Ground No. 4:

The Appellant craves leave to add, alter, or amend any of the grounds of appeal at or before the time of the hearing

The relevant facts in brief are that the application filed by the Assessee in Form No.10AB for seeking registration under Section 12Aof the Act was rejected by the Learned CIT(E) on the ground that the Assessee had failed to submit the requisite details/documents to establish the genuineness of consonance with its objects.

Aggrieved by the rejection order passed by the Learned CIT(E), the Assessee has preferred the present appeal before this Tribunal on the grounds reproduced in paragraph 3 above.

The Learned Authorised Representative for the Assessee appearing before us, at the outset, sought another opportunity to make out a case for grant of registration. It was submitted that the Assessee was in possession of all relevant details/documents. However, the same could not be submitted before the Learned CIT(E) as the notice of haring was issued on the email address of the previous tax consultant and for the reason that reasonable opportunity of being heard was not granted to the Assessee.

Per Contra, the Learned Departmental Representative submitted that the notice was sent on the email address on record. The Assessee had neither filed relevant documents/details along with the application nor did the Assessee come forward to file the same in response to notice issued by the Learned CIT(E). Therefore, there was no infirmity in the order passed by the Learned CIT(E).

We have considered the rival contentions and have perused the material available on record. The Assessee has contended that the documents/details, though available, could not be filed before the Learned CIT(E) since the solitary notice sent by the Learned CIT(E) was sent on email address of the previous tax consultant provided by the Assessee. We note that the Learned CIT(E) had rejected the application after affording opportunity to the Assessee on 12/02/2026. Given the aforesaid, we are of the view that the interest of justice would be met in case another opportunity is granted to the Assessee to furnish the relevant documents/details/submissions for consideration of the Learned CIT(E). Accordingly, we set aside the impugned order and restore the application filed by the Assessee back to the file of the Learned CIT(E) being heard. The Assessee has directed to take steps to place on record of the Learned CIT(E) the correct/present email address and postal address and also update the same on e-filing portal.

It is clarified that in case the Assessee fails to comply with the above directions; or fails to file documents/submission; or fails to enter appearance before the Learned CIT(E), the Learned CIT(E) would be at liberty to adjudicate the application based upon the material on record.

The Assessee is directed to be vigilant and track the proceedings through Income Tax Business Application (ITBA) Portal.

In terms of above, Ground No. 7 raised by the Assessee is allowed while the balance grounds raised by the Assessee are dismissed as having been rendered infructuous.

In the result, the present appeal (ITA No. 1386/AHD/2026) preferred by the Assessee is treated as allowed for statistical purposes.

We would next take up ITA No. 1387/AHD/2026 preferred by the Assessee challenging the Order, dated 07/03/2026, passed by Learned CIT(E) whereby the application filed by the Assessee in Form No. 10AB under sub Section (5) of Section 80G of the Income Tax Act, 1961 was rejected.

The Assessee has raised following grounds of appeal in ITA No.1387/AHD/2026:

That the Ld. CIT(E) failed to appreciate that the foundation of the rejection order. i.e., the absence of a valid 12A/12AB registration, was itself a result of proceedings conducted in violation of the principles of natural justice (Audi AlteramPartem).

That the Ld. CIT(E) ought to have considered the underlying reasons for the non-availability of the 12A/12AB certificate before passing the rejection order, instead of rejecting the 80G application mechanically.  The appellant was prevented by a sufficient and reasonable cause from ensuring the validity of its 12A/12AB registration. The rejection of the consequential 80G application without considering these facts is arbitrary and unjust.

Without prejudice to the above grounds, it is prayed that the matter may be remanded back to the file of the Ld. CIT(E) with a direction to pass a fresh order on merits after affording the Appellant an adequate and effective opportunity of being heard.”