CHANDRAP PRABHUJI DERASAR BADARKHA,AHMEDABAD vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

ITA 2597/AHD/2026Status: DisposedITAT Ahmedabad30 September 20263 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the interests of justice would be served by granting the assessee an opportunity to present its case before the CIT(E). Consequently, the impugned order of the CIT(E) rejecting the Section 12A application was set aside. The matter was restored to the file of the CIT(E) for a fresh decision on the assessee's application. The CIT(E) was directed to provide a proper and adequate opportunity to the assessee to present its case and then decide the application on merits within six months from the receipt of the order. The appeal filed by the assessee trust was treated as allowed for statistical purposes.

What were the facts?

The assessee, Chandrap Prabhuji Derasar Badarkha, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad, against the order dated 13.11.2024 passed by the Commissioner of Income Tax (Exemption) (CIT(E)), Ahmedabad. The CIT(E) had rejected the assessee trust's application for final registration under Section 12A of the Income Tax Act, 1961. The assessee contended that notices issued by the CIT(E) via email for details and explanations regarding the genuineness of its activities were not received by the trustees. Consequently, the assessee remained unrepresented, and the CIT(E) rejected the application ex-parte without further opportunity. The ITAT considered these submissions and the impugned order.

What were the issues?

1. Whether the rejection of the assessee's application for final registration under Section 12A of the Income Tax Act, 1961, by the CIT(E) was justified, given that the assessee was not afforded an adequate opportunity to present its case? Assessee's Contention: The assessee argued that the notices sent by the CIT(E) via email were not brought to the trustees' attention, leading to their absence before the CIT(E). The CIT(E) rejected the application ex-parte without granting any further opportunity. The assessee relied on the principle of natural justice, implicitly arguing for an opportunity to be heard. Revenue's Contention: The judgment does not record any specific contentions made by the revenue before the ITAT.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI GANGADHAR PANDA

For Appellant: Shri Hardik Mehta, A.R, Shri R P Rastogi, CIT. DR
For Respondent: Shri R P Rastogi, CIT. DR
Hearing: 29/09/2026

Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption), (hereinafter referred to as “CIT(E)”), Ahmedabad dated 13.11.2024. ITA No.2597/Ahd/2026 [Chandrap Prabhuji Derasar Badarkha vs. CIT-E] - 2 –

2.

The assessee in this appeal is aggrieved by the action of the Ld. CIT(E) in rejecting the application of the assessee trust for the final registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as the “Act”).

3.

Ld. Counsel for the assessee inviting

The order continues below.

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