JAI BABA MAI MAL UPPAL BIRADARI SABHA MANDIR BABA MAI MAL JI ,JAMMU vs. COMMISSIONER OF INCOME TAX ( EXEMPTIONS ), CHANDIGARH

ITA 966/ASR/2026Status: DisposedITAT Amritsar30 September 2026AY 2026-20274 pages
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What did the Tribunal hold?

The Tribunal held that the rejection of the assessee's application for registration under Section 12AB was primarily due to non-compliance and procedural deficiencies, specifically the failure to furnish requisite documents and details despite being pointed out. The Tribunal acknowledged the assessee's submission that it was not afforded adequate and effective opportunity due to the short notice period. Considering the assessee's undertaking to furnish all required documents and cooperate with the proceedings, the Tribunal was of the considered opinion that the matter deserved to be examined afresh by the CIT(E). Therefore, the Tribunal set aside the impugned order and restored the application for registration to the file of the CIT(E) for fresh consideration and adjudication in accordance with law. The CIT(E) was directed to afford a reasonable opportunity of being heard and decide the application on merits after considering the furnished material. The Tribunal explicitly clarified that it had not expressed any opinion on the merits of the assessee's eligibility for registration. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Jai Baba Mai Mal Uppal Biradari Sabha Mandir, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Chandigarh (CIT(E)), dated 30/06/2026. The CIT(E) had cancelled the assessee's application for registration under Section 12AB of the Income-tax Act, 1961. The CIT(E) noted that the assessee did not submit a reply to a show cause notice and sought an adjournment, failing to provide required details and documents regarding its charitable objects and genuineness of activities. The assessment year under consideration is 2026-27. The assessee argued that the rejection was due to procedural deficiencies and a short notice period, not on merits, and expressed willingness to provide all necessary information.

What were the issues?

1. Whether the CIT(E) was justified in cancelling the assessee's application for registration under Section 12AB of the Income-tax Act, 1961, on the grounds of non-furnishing of required documents and procedural deficiencies, without considering the merits of the case? Assessee's Contentions: - The assessee had filed replies to the initial notice on 14.04.2026 and 20.04.2026, which were acknowledged. - A subsequent notice dated 27.06.2026 required a reply by 29.06.2026, providing only one day's time, making it impossible to respond adequately before the impugned order was passed on 30.06.2026. - The rejection was based on procedural issues and not on any adverse findings regarding the charitable objects or genuineness of activities. - The assessee is ready to furnish all requisite documents and details. - In the interest of substantial justice, one more opportunity should be granted for the application to be considered on merits. Revenue's Contentions: - The judgment records no specific contentions from the revenue's side beyond what was stated in the CIT(E)'s order regarding the non-furnishing of documents.

Which sections of the Income-tax Act were involved?

Section 12AB

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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: SH. SAKTIJIT DEY, HON’BLE & SH. GIRISH AGRAWAL, HON’BLE

Hearing: 30.09.2026Pronounced: 30.09.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of the Ld. CIT (E), Chandigarh, dated 30/06/2026, cancelling the application seeking registration u/s 12(1) (ac)(vi) of the Income-tax Act, 1961 (henceforth the Act).

2.

We take up appeal for registration u/s 12AB where the ld. CIT(E) observed that assessee did not submit any reply called for and sought an adjournment pursuant to the show cause notice issued by him. According to the ld. CIT(E), in spite of opportunity afforded to the assessee to furnish details and documents nothing came Jai Baba Ma

The order continues below.

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