SHRI KUTCH KADVA PATIDAR SAMAJ,BHARUCH vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 698/AHD/2026Status: DisposedITAT Ahmedabad18 June 20263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order, citing the principle of natural justice, and granted the assessee one more opportunity to present its case. This was conditional on the assessee paying a cost of Rs. 10,000/- to the Income Tax Department.

What were the facts?

The assessee, a Trust, applied for registration under section 12AB of the Income Tax Act. The CIT(E) rejected the application and revoked provisional registration due to the assessee's failure to respond to multiple hearing notices.

What were the issues?

Whether the CIT(E) was justified in rejecting the registration application ex-parte, and whether the assessee should be granted another opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCHES, AHMEDABAD

Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha

Hearing: 10.06.2026Pronounced: 18.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCHES, AHMEDABAD Before: Shri T.R. Senthil Kumar, Judicial Member & Shri Narendra Prasad Sinha, Accountant Member

ITA No: 698/AHD/2026 Assessment Year: NA

Shri Kutch Kadva V Commissioner of Income Tax Patidar Samaj s (Exemption), Uma Bhavan, Ahmedabad Old N. H. No.8, Ankleshwar, Dist. Bharuch-393002 PAN: AAHTS 5467N (Respondent) (Appellant) Assessee Represented : Sh. Kamlesh Bhatt, CA : Sh. Kiran Unavekar, Ld. CIT-DR Revenue Represented Date of hearing : 10.06.2026 Date of pronouncement : 18.06.2026 आदेश/ORDER PER, T.R. SENTHIL KUMAR, JM:

This appeal is filed by the Assessee as against the order dated 30.12.2026 passed by Commissioner of Income Tax (Exemption), Ahmedabad (in short “Ld. CIT(E)”) denying registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). 2. Brief facts of the case are, the assessee is a Trust for Social, Economic, Moral, Physical and Education purposes. The Trust filed application for registration of the Trust u/s 12AB(1)(b)(ii) of the Act.

I.T.A No. 698/AHD/2026 2 Shri Kutch Kadva Patidar Samaj Vs. CIT(E)

Ld. CIT(E) given three opportunities of hearing on 27.08.2025, 07.10.2025 and 12.12.2025, however, as the assessee failed to respond the above hearing notices, which was resulted in passing exparte order and also the Trust is meant for particular group of community. Therefore, application for registration of the Trust was rejected as well as the provisional registration granted u/s 12AB(4) of the Act is also revoked. 3. Aggrieved against the same, assessee is in appeal before us raising following grounds of appeal:-

1.

In view of the facts and circumstances of the case the Ld. CIT(Exemption), erred in law and in facts, in cancelling the registration of the Appellant U/s. 12AA/12 AB of the Income Tax Act, 1961 and hence Your Appellant PRAYS that the impugned order of the cancellation of registration of the appellant be quashed and the Ld. CIT(Exemption) be directed to grant the registration to the appellant. 4. Ld. Counsel appearing for the assessee filed before us, the translated English copy of the Trust deed and the activities carried out by the Trust for the Financial Year 2024-25, 2023-24 and 2022- 23 with photographs, which is running to 52 pages and pleaded that one more opportunity of hearing be given to the assessee Trust to grant registration u/s 12AB of the Act. 5. Per contra, Ld. CIT DR appearing for the Revenue supported the order passed by the Ld. CIT(E) and the same does not require any interference. 6. We have given thoughtful consideration and perused the materials available on record including the paper book filed by the assessee Trust, wherein, the activities carried out by the Trust. It is undisputed fact that the assessee Trust has not replied to the three opportunities given by Ld. CIT(E) and now undertakes to file all

I.T.A No. 698/AHD/2026 3 Shri Kutch Kadva Patidar Samaj Vs. CIT(E)

necessary details before Ld. CIT(E), if one more opportunity is given to the assessee Trust. In the interest of Principle of Natural Justice, we deem it fit to impose a cost of Rs.10,000/- payable by the assessee to the Income Tax Department within two weeks of receipt of copy of this order and thereby, the impugned order passed by Ld. CIT(E) is hereby set aside on the condition that the assessee produce copy of the challan for payment of cost of Rs.10,000/-. Thus, we direct Ld. CIT(E) to give one more opportunity of hearing to the assessee and decide the application in accordance with the provisions of law. 7. In the result, appeal filed by the Assessee-Trust is treated as allowed for statistical purposes.

Order is pronounced under provision of Rule 34 of ITAT Rules, 1963 on 18-06-2026.

Sd/- sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat Dated 18/06/2026 Mittali आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order

Assistant Registrar, ITAT, Ahmedabad

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