PANCHAYTI GAUSHALA BISHANDI ROAD,JAITU vs. COMMISSIONER OF INCOME TAX ( EXEMPTIONS), CHANDIGARH

ITA 192/ASR/2024Status: DisposedITAT Amritsar29 September 2026AY 2023-244 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 12A(1)(ac)(iii) was primarily due to non-compliance and procedural deficiencies, as the requisite documents and details were not furnished despite being pointed out by the CIT (E). The Tribunal acknowledged the assessee's undertaking to furnish a complete application with all supporting documents and to comply with future requirements. Therefore, in the interest of justice and fair play, the Tribunal set aside the impugned order and restored the application to the file of the CIT (E) for fresh consideration and adjudication. The assessee was directed to furnish the complete Form No. 10AB and all required information, and the CIT (E) was instructed to afford a reasonable opportunity of being heard and decide the application afresh on merits. The Tribunal explicitly stated 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, Panchayti Gaushalla, Bishnandi, filed an appeal against the order of the CIT (Exemption), Chandigarh, dated 23.02.2024. The CIT (E) rejected the assessee's application for registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961. The rejection was based on the assessee's failure to submit a reply to a show cause notice and a request for adjournment, leading the CIT (E) to conclude that the application was deficient in required submissions regarding charitable objects and genuineness of activities. The assessee contended that it had submitted its Memorandum of Association, audited financial statements, and prior registration certificate, and that its charitable objects and activities had not changed. The assessee also claimed to have furnished details on 09.01.2024 and 10.02.2024, and argued that the rejection was due to procedural deficiencies rather than adverse findings on merits.

What were the issues?

1. Whether the rejection of the application for registration under Section 12A(1)(ac)(iii) by the CIT (E) was justified on account of procedural deficiencies and non-furnishing of documents, despite the assessee claiming to have submitted relevant materials and having a history of prior approval under Section 12A. Assessee's Contentions: - The assessee argued that it had submitted its Memorandum of Association, audited financial statements, and prior registration certificate, demonstrating its charitable nature and activities. - It claimed that the rejection was based on procedural non-compliance and not on any adverse findings regarding its charitable objects or the genuineness of its activities. - The assessee asserted that it had furnished details on specific dates (09.01.2024 and 10.02.2024) and was ready to furnish a complete application in Form No. 10AB with all requisite documents. - The assessee requested one more opportunity for substantial justice, as it could not avail adequate opportunity to present its case. Revenue's Contentions: The judgment records no specific contentions from the revenue's side beyond the order of the CIT (E) which is under challenge.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

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

For Appellant: Ms. Jyotsna, CA
Hearing: 29.09.2026Pronounced: 29.09.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of the Ld. CIT (E), Chandigarh, dated 23.02.2024, rejecting the registration u/s 12A(1)(ac)(iii) 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 up on record. In absence of the required submissions regarding the charitable objects and genuineness of activities of the as

The order continues below.

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