ZAID BIN JAMEEL,JAMMU AND KASHMIR vs. DC/ACIT. CENT, CIRCLE SRINAGAR, JAMMU AND KASHMIR

ITA 280/ASR/2026Status: DisposedITAT Amritsar29 September 2026AY 2022-234 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection of the assessee's application for registration under Section 12A(1)(ac)(ii) was principally due to non-compliance and procedural deficiencies, rather than any adverse findings on the charitable objects or genuineness of activities. The Tribunal noted that the assessee had provided audited financial statements and a previous registration certificate. It acknowledged that the non-compliance occurred due to the death of a member responsible for compliances, which brought the assessee's affairs to a standstill. The Tribunal considered this fact not to have been properly appreciated by the CIT (E). 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 on merits. The assessee was directed to furnish all requisite documents and cooperate with the proceedings. 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, Roshni C/o Holy Cross Church, Ludhiana, filed an appeal against the order of the CIT (Exemption), Chandigarh, dated 09.12.2025. The CIT (E) rejected the assessee's application for registration under Section 12A(1)(ac)(ii) 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 sought adjournment. The CIT (E) concluded that the application was deficient due to a lack of required submissions regarding charitable objects and the genuineness of activities. The assessee contended that it had previously enjoyed registration under Section 12A and that there had been no change in its objects or activities. The assessee also cited the death of a key member responsible for compliances as a reason for the procedural deficiencies.

What were the issues?

1. Whether the rejection of the assessee's application for registration under Section 12A(1)(ac)(ii) of the Income-tax Act, 1961, by the CIT (E) was justified on account of procedural deficiencies and non-furnishing of documents. Assessee's contentions: The assessee argued that it had previously held registration under Section 12A and that its charitable objects and activities remained unchanged. It claimed that the rejection was based on procedural lapses, not on any adverse findings regarding its charitable nature. The assessee attributed these lapses to the death of a member who solely handled taxation and statutory compliances, causing a standstill in its affairs. The assessee contended that the CIT (E) failed to examine the merits of the case despite requisite details being on record. Revenue's contentions: The revenue, represented by the CIT (DR), did not record any specific contentions in the judgment. The CIT (E)'s order, which is under challenge, highlighted the assessee's failure to submit required documents and replies.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12A,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

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 09.12.2025, rejecting the registration u/s 12A(1)(ac)(ii) 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 assessee trust, ld. CIT(E

The order continues below.

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