SHREE SWAMINARAYAN MANDIR,ANAND vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 2522/AHD/2026Status: DisposedITAT Ahmedabad30 September 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee had failed to respond to several notices issued by the Ld. CIT(E) and did not furnish the required details, clarifications, and explanations. Consequently, the Ld. CIT(E) rejected the application filed in Form No. 10AB. Before the Tribunal, the assessee's authorized representative requested an opportunity to make full compliance and provide all necessary details to the revenue authorities. In the interest of justice, the Tribunal decided to remand the matter back to the Ld. CIT(E) for de novo adjudication. The assessee was directed to submit all relevant bank statements and supporting documents and to comply with the notices issued by the revenue authorities without seeking unnecessary adjournments. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Shree Swaminarayan Mandir, filed an appeal against the order dated 17.07.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad (Ld. CIT(E)). The Ld. CIT(E) rejected the assessee's application for registration under Section 12AB of the Income-tax Act, 1961, filed in Form No. 10AB. The rejection was based on the assessee's failure to provide submissions, details, or documents despite multiple notices, and not seeking any adjournment. The assessee's appeal before the ITAT was filed with a delay of 274 days, attributed to the negligence of their tax consultant. The Tribunal condoned this delay. The assessee's application was for fresh registration under Section 12AB(1)(b), and the Ld. CIT(E) noted that Rule 17A(2) of the IT Rules, 1962, remained un-complied with.

What were the issues?

1. Whether the Ld. CIT(E) erred in rejecting the application for registration under Section 12AB on the grounds of non-compliance with notices and failure to provide necessary details, documents, and explanations regarding the genuineness of activities and compliance with other laws. - Assessee's contention: The Ld. CIT(E) erred by not considering that the assessee already had registration under Section 12AA since 20.09.2019, with no changes in its objects or circumstances, and no adverse findings were recorded previously. The assessee also argued that documents like the Certificate of Registration with the Charity Commissioner and financial statements for the year ending 31.03.2022 were submitted. - Revenue's contention: Not recorded. 2. Whether the Ld. CIT(E) erred in directing the assessee to compute tax liability under Section 115TD of the Act, read with Rule 17CB, when the order rejecting the Section 12AB application was itself appealable. - Assessee's contention: The direction to compute tax under Section 115TD was premature and erroneous as the order rejecting the Section 12AB application was subject to further appeal. - Revenue's contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB,Section 115TD,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD BENCHES, AHMEDABAD

Before: DR. BRR KUMAR & SHRI SANJAY KUMAR

Pronounced: 30.09.2026

PER SANJAY KUMAR, JUDICIAL MEMBER:

- This appeal has been filed by the Assessee against the order dated 17.07.2025 passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad (hereinafter referred to as ‘Ld. CIT (E)’ in short), under Section 12A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’ in short).

2.

The Assessee has raised following grounds of Appeal:-

ITA No. 2522/AHD/2026) - 2–

“1. The Ld. Commissione

The order continues below.

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