KARISHMA EDUCATION SOCIETY, RAIPUR,RAIPUR vs. CIT(EXMP), BHOPAL, BHOPAL

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ITA 386/RPR/2026Status: DisposedITAT Raipur18 June 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that it would be unfair to dismiss an application solely for non-compliance with notices and failure to furnish documents, as a reasonable opportunity should be provided. The order of the CIT(Exemption) was set aside.

What were the facts?

The assessee, Karishma Education Society, applied for registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(Exemption) rejected the application for non-compliance with notices and failure to furnish required documents like activity reports and old 12A registration.

What were the issues?

Whether the CIT(Exemption) was justified in rejecting the registration application without providing a reasonable opportunity to the assessee to furnish the required documents.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI PARTHA SARATHI CHAUDHURY & SHRI AVDHESH KUMAR MISHRA

For Appellant: Shri S.R. Rao, Adv
For Respondent: Shri Rituparna Namdeo, CIT-DR
Hearing: 17.06.2026Pronounced: 18.06.2026

आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM:

The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Exemption), Bhopal dated 22.03.2026 as per the grounds of appeal on record.

2.

The assessee is aggrieved due to rejection of the application filed in Form 10AB for grant of registration/approval under Section 12A(1)(ac)(ii) of the Act. The Ld. CITE(E) had observed and held as follows:

“With reference to your application filed in Form 10AB for registration/approval u/s 12A/80G. Attachments to Form 10AB and reply against earlier notice issued by this office have been perused. Following deficiency has been found in your submissions for processing the instant application(s). Therefore, you are hereby required to furnish the following documents/clarification/information relevant to your case on or before the date mentioned above: 1. Activity report along with photographs undertaken during last 3 FYs. 2. Copy of old 12A obtained before 01.04.2021. As the matter is barred by limitation on 31.03.2026, this may kindly be treated as the last and final opportunity to submit the requisite documents. In case of non-compliance, the decision may be made based on the documents available with this office. It may also be noted that personal hearing is not required, and the submission may be made through electronic modes, such as through portal/e-mail mentioned at the bottom of this letter.” 3. That as evident from the aforesaid paras the reason for rejection of the application by the Department was that the assessee did not comply with

3 Karishma Education Society Vs. CIT(E), Bhopal ITA No.386/RPR/2026

the hearing notices and had not furnished the activity report along with photographs during the last three Financial Years and copy of old 12A obtain before 01.04.2021.

4.

At the time of hearing the Ld. Counsel for the assessee submitted that during the proceedings before the Department they were procuring all the relevant datas before which the CIT(E) had passed the order and had dismissed the application of the assessee without providing reasonable opportunity. We find that as a matter of legal process the power to grant registration is always with the Department in terms with Section 12AB of the Act wherein CIT(E) has to look into the objects of the trust and the genuineness of the activities performed by such trust. That only when the Ld. CIT(E) is satisfied on these two aspects only then the registration under Section 12AB is granted to the assessee. However, it is also a matter of fact that these provisions of registration and exemption carryforward the Directive Principles of State Policy enshrine in a welfare state. Therefore, as far as possible reasonable opportunity has to be provided to the assessee to furnish requisite documents before the Ld. CIT(E) and if the Ld. CIT(E) is satisfied in terms with Section 12AB of the Act then he may grant the registration under Section 12AB of the Act. Therefore, it would be unfair to dismiss any application of the trust only on the ground that the said assessee had not complied with the hearing notices and had not furnished

4 Karishma Education Society Vs. CIT(E), Bhopal ITA No.386/RPR/2026

relevant documents. In view thereof we set-aside the order of the Ld. CIT(E) and remand the matter back to his file with direction to the assessee to furnish all the relevant documents and represent the matter on merits. The Ld. CIT(E) shall consider such evidences and if satisfied in terms with Section 12AB of the Act shall grant registration to the assessee.

5.

As per above terms, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 18th June, 2026.

Sd/- Sd/- AVDHESH KUMAR MISHRA PARTHA SARATHI CHAUDHURY (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायपुर/ RAIPUR ; �दनांक / Dated : 18th June, 2026. Tanmay, Sr. PS आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to : 1. अपीलाथ� /The Appellant. 2. ��यथ� /The Respondent. 3. The CIT(Appeals)-1, Raipur (C.G.) 4. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, रायपुर ब�च, रायपुर / DR, ITAT, Raipur Bench, Raipur. 5. गाड� फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपील�य अ�धकरण, रायपुर / ITAT, Raipur.

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