MARWARI KANWAR SANGH,DEOGARH vs. EXEMPTION WARD, DHANBAD, DHANBAD

ITA 406/RAN/2026Status: DisposedITAT Ranchi30 September 2026AY 2027-284 pages
AI SummaryRemanded

What were the facts?

The assessee, Marwari Kanwar Sangh, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Ranchi Bench, against an order passed by the learned Commissioner of Income Tax (Exemption), Patna. The order, dated 25/06/2026, was challenged for rejecting the assessee's application for regular registration under Section 12AB(1)(b) read with Section 12A(1)(ac)(ii) of the Income Tax Act, 1961. The assessee contended that the order was digitally signed and issued on 27/06/2026, after the required documents were uploaded on 26/06/2026, thus violating principles of natural justice. Furthermore, the rejection was based on a marginal delay of six days in filing the application (filed on 06.10.2025 against a due date of 30.09.2025) without condoning the delay or recording a specified violation. The assessee also highlighted its unblemished compliance history.

What did the Tribunal hold?

The Tribunal considered the rival submissions and found it appropriate to restore the matter back to the file of the learned CIT(Exemption). The Tribunal directed the assessee to produce all the required documents before the CIT(Exemption) so that the application for registration can be decided on merits. The reasoning for this decision was based on the submission by the appellant's counsel that one more opportunity should be provided due to the illness of the person responsible for submitting the details. The learned CIT-Departmental Representative did not raise any serious objection. Therefore, the appeal was allowed for statistical purposes, with the operative direction being to re-examine the application after the assessee provides the necessary details. No specific issue was left undecided, as the Tribunal chose to remand the matter for fresh consideration.

What were the issues?

1. Whether the order passed by the Ld. CIT(Exemption) under Section 12AB(1)(b) read with Section 12A(1)(ac)(ii) of the Income Tax Act, 1961, is bad in law and liable to be set aside for being passed without considering the documents uploaded prior to its digital signing and issuance, thereby violating principles of natural justice? - Assessee's contention: The order was digitally signed and issued on 27.06.2026, but the required documents were uploaded on 26.06.2026. The Ld. CIT(Exemption) failed to consider these uploaded documents, violating natural justice. - Revenue's contention: Not recorded. 2. Whether the Ld. CIT(Exemption) erred in rejecting the assessee's application for regular registration under Section 12AB(1)(b) of the Act solely on the ground of a marginal delay of six days, without exercising the power of condonation vested under the proviso to Section 12A(1)(ac) and without recording any finding of a "specified violation" under Section 12AB(4)? - Assessee's contention: The rejection was based on a marginal delay of six days without condonation or recording a "specified violation." The assessee also argued that this rejection does not attract the deeming fiction of conversion or levy of tax on accreted income under Section 115TD. - Revenue's contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12A(1)(ac),Section 12A(1)(ac)(ii),Section 12AB,Section 12AB(1)(b),Section 12AB(4),Section 115TD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI RATNESH NANDAN SAHAY & SMT. RAJANI GUDURI

For Appellant: Shri Devesh Poddar, Advocate
For Respondent: Smt. Rohini Diwakar, CIT-DR
Hearing: 30/09/2026Pronounced: 30/09/2026

PER: BENCH

1.

This appeal by the assessee is directed against the order of the ld. CIT, Exemption, Patna dated 25/06/2026 wherein the assessee has raised following grounds of appeal:

"

1.

That on the facts and in the circumstances of the case and in law, the order dated 25.06.2026 passed under section 12AB(1)(b) read with sub- clause (ii) of clause (ac) of sub-section (1) of section 12A of the income- tax Act, 1961. though borne the date 25.06.2026, was digitally signed and issued only on 27.06.2026, the documents/details called for vide notices dated 26.03.2026. 27.05.2026 and 13.06.2026 having been duly uploaded by the Appellant on the e

The order continues below.

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