SHEO NARAYAN TRUST,KHAJPURA vs. CIT EXEMPTION, PATNA

ITA 554/PAT/2026Status: DisposedITAT Patna16 October 2026AY 2025-20263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that considering the submissions made by the assessee and the facts of the case, it was inclined to restore the appeal to the file of the CIT(E). The CIT(E) was directed to pass an order after hearing the assessee. The assessee was also directed to cooperate in the remand proceedings. The reasoning was based on providing an opportunity to the assessee to present their case, thereby adhering to principles of natural justice. The ratio decidendi is that where an application is rejected due to a procedural lapse by the assessee, and the revenue does not object, the matter should be remanded to provide a fair hearing. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Sheo Narayan Trust, filed an appeal before the Income-Tax Appellate Tribunal (ITAT), Patna Bench, against an order dated 10.06.2026 passed by the National Faceless Appeal Centre (NFAC), Delhi. The appeal pertains to the assessment year 2025-26. The assessee had filed an application in Form 10AB for grant of regular registration, which was denied by the CIT(E) due to the assessee's failure to submit a response or make submissions. The assessee's representative requested that the appeal be remitted back to the CIT(E) to provide an opportunity to present the case. The revenue did not object to this request.

What were the issues?

1. Whether the assessee should be granted an opportunity to present its case before the CIT(E) for the grant of regular registration, considering the denial of the application due to non-submission of a response. (Question of mixed law and fact, concerning principles of natural justice and procedural fairness under the Income-Tax Act, 1961). Contentions: Assessee: The assessee argued that the application for regular registration in Form 10AB was denied due to a failure to respond to a notice. For the interest of justice, the assessee prayed for the appeal to be remitted back to the CIT(E) to allow them an opportunity to place their case before the authority. Revenue: The revenue did not raise any objection to the assessee's prayer for remission.

Which sections of the Income-tax Act were involved?

Section 10(23C),Section 12AB

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE INCOMETAX APPELLATE TRIBUNAL PATNA BENCH, PATNA (VIRTUAL HEARING AT KOLKATA) SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER SHRI GOPALAN GURUSAMY, ACCOUNTANT MEMBER ITA 554/PAT/2026 (Assessment Year: 2025-26) Sheo Narayan Trust.............................................................……..................................Appellant Raja bazaar, Bailey Road, Patna Bihar- 800014 [PAN- AADTS5770J] Vs. CIT EXEMPTION.................................................................……………....……….Respondent C R Building, Patna Bihar 800001 Appearances by: Sanjeev Kumar, Adv, appeared on behalf of the Appellant Bharat Bhusan Garg, CIT, DR., appeared on behalf of the Respondent Date of concluding the hearing: October 13, 2026 Date of pronouncing the order: October 16 ,2026

ORDER Per Pradip Kumar Choubey, Judicial Member:

This appeal filed by the Assessee is directed against the order dated 10.06.2026 of the Office of the National Faceless Appeal Centre (NFAC), Delhi of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The Ld. AR has only prayed that appeal of the assessee be remitted back to the file of the CIT(E) as the order passed by the CIT(E) when assessee faile

The order continues below.

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