DAVINDRA EDUCATIONAL SOCIETY REGD,AMRITSAR vs. INCOME TAX OFFICER WARD-(EXEMPTION), AMRITSAR

ITA 640/ASR/2026Status: DisposedITAT Amritsar29 September 2026AY 2027-284 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(1)(b)(ii) was principally due to the non-furnishing of requisite documents and details, constituting procedural deficiencies. The Tribunal noted the assessee's undertaking to furnish a complete application with supporting documents and to comply with further requirements. In the interest of justice and fair play, 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. The assessee was directed to furnish the complete Form No. 10AB and all required documents, and to cooperate in the proceedings. The CIT(E) was instructed to afford a reasonable opportunity of being heard and to decide the application afresh on merits. The Tribunal clarified that it had not expressed any opinion on the merits of the assessee's eligibility for registration. Consequently, the appeal related to Section 80G approval, being consequential, also met the same fate. The ratio is that procedural deficiencies, if rectified by the assessee with an undertaking to comply, should not lead to outright rejection without a fresh opportunity, especially when the merits of the application are not yet examined.

What were the facts?

The assessee, Davinder Educational Society, filed appeals before the Income Tax Appellate Tribunal (ITAT) against the orders of the Commissioner of Income Tax (Exemption) [CIT(E)]. The appeals pertained to the assessment year 2027-28. The primary issue was the rejection of the assessee's application for registration under Section 12A(1)(ac)(ii) of the Income Tax Act, 1961. A consequential appeal was filed against the rejection of its application for approval under Section 80G(5), which was dependent on the Section 12AB(1)(b)(ii) registration. The CIT(E) rejected the application for registration because the assessee failed to submit a reply to a show cause notice and sought an adjournment, leading to the conclusion that the application was deficient in required submissions regarding charitable objects and genuineness of activities.

What were the issues?

1. Whether the rejection of the assessee's application for registration under Section 12AB(1)(b)(ii) of the Income Tax Act, 1961, by the CIT(E) was justified, considering the assessee's claim of having submitted requisite documents and its readiness to furnish a complete application. Assessee's contentions: The assessee argued that it had filed its Memorandum of Association, audited financial statements, and its prior registration certificate. It contended that its charitable objects and activities remained unchanged and were charitable in nature. The assessee asserted that the rejection was based on procedural deficiencies and non-furnishing of certain documents, not on any adverse findings regarding its objects or activities. It expressed willingness to furnish a complete application in Form No. 10AB with all required documents and sought one more opportunity for substantial justice, stating it could not avail adequate opportunity previously. Revenue's contentions: The judgment records no specific contentions from the revenue before the Tribunal. The CIT(E)'s order, as summarized, indicated rejection due to non-submission of replies and deficiency in required submissions.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12AB(1)(b)(ii),Section 80G(5)

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: 28.09.2026Pronounced: 29.09.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

The moot ground raised by the assessee in the present appeal is in respect of rejection of its application for registration u/s 12A(1)(ac)(ii). The second appeal is in respect of rejection of application seeking approval u/s 80G(5) which is consequential to rejection of registration u/s 12AB(1)(b)(ii) of the Income-tax Act, 1961 (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 not

The order continues below.

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