SHREE DHARMNANDAN SEVA CHARITABLE TRUST,MORBI vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

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ITA 1478/AHD/2026Status: DisposedITAT Ahmedabad16 June 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the interests of justice would be served by remanding the matter back to the CIT(E). The CIT(E) is directed to consider the application afresh after taking into account the submissions and explanations to be submitted by the assessee.

What were the facts?

The assessee, a charitable trust, applied for registration under section 12A(1)(ac)(iii). The CIT(Exemption) rejected the application due to non-compliance and failure to submit required details. The assessee's consultant could not appear before the CIT(E) due to unforeseen circumstances.

What were the issues?

Whether the rejection of the application for registration under section 12A was justified without providing the assessee a proper opportunity to explain. Whether the matter should be remanded to the CIT(E) for fresh consideration.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB,Section 115TD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

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

For Appellant: Shri Hardik Mehta, AR
For Respondent: Shri Rignesh Das, CIT. DR
Hearing: 11.06.2026Pronounced: 16.06.2026

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 24.02.2026, whereby the application of the assessee for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 was rejected.

2.

The assessee has raised the following grounds of appeal:

ITA No. 1478/Ahd/2026 Asst. Year : NA - 2– 1. The Hon’ble CIT(Exemption) has erred in both in law and on facts by rejecting the application of the Appellant filed for the grant of registration u/s.12A of the Income Tax Act, 1961(“Act”). 2. The Hon’ble CIT(Exemption) has erred in rejecting the application field for the grant of registration u/s.12A of the Act, as the Appellant was restricted by reasonable cause to submit the relevant 3. The Hon’ble CIT(Exemption) has erred in cancelling the provisional approval granted u/s.12A of the Act on the ground that the Appellant could not comply with the noticed dated 24.02.2025 issued for furnishing certain details/documents. 4. The Hon’ble CIT(Exemption) has erred in treating the present application for registration filed as non-maintainable, which is against the principle of natural justice. 5. The Hon’ble CIT(Exemption) has erred in directing the Appellant to pay tax as per the provisions of section 115TD(5) of the Act. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.

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 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 note that a notice of hearing was issued on 24.02.2026, calling upon the assessee to furnish the required details/documents. The Ld. CIT(E) rejected the application of the assessee on the ground that the assessee-trust neither filed any

ITA No. 1478/Ahd/2026 Asst. Year : NA - 3– submission nor sought any adjournment. The Ld. Counsel submitted that the tax consultant who was supposed to appear before the Ld. CIT(E) and represent the case could not do so and failed to file the relevant details due to unforeseen circumstances. Therefore, the Ld. Counsel prayed that, given an opportunity, the requisite details and explanations would be furnished before the Ld. CIT(E). The Ld. CIT(DR) argued that the assessee-trust is required to furnish the necessary 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 16.06.2026

Sd/- Sd/- (RAHUL CHAUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 16.06.2026 MV

ITA No. 1478/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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