MODERN HIGH SCHOOL TRUST,AHMEDABAD vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 2978/AHD/2026Status: DisposedITAT Ahmedabad22 October 2026AY 2025-263 pages
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What did the Tribunal hold?

The Tribunal set aside the order of the CIT(E) and restored the application for fresh consideration. The reasoning was that the CIT(E) appeared not to have considered the documents filed by the assessee, treating the assessee as non-compliant. The Tribunal directed the CIT(E) to take into account the documents filed by the assessee and to seek any other documents deemed fit for examination. The assessee was also directed to diligently participate in the proceedings. The ratio decidendi is that an application for registration under section 12A cannot be rejected without a proper examination of the documents submitted by the assessee, and failure to appear for hearings might be a consequence of the assessing officer not acknowledging submitted documents. The operative direction is to re-examine the application.

What were the facts?

The assessee, Modern High School Trust, filed an appeal against the order dated 29.06.2026 passed by the Commissioner of Income Tax (Exemption), Ahmedabad (CIT(E)). The CIT(E) rejected the assessee's application for registration under section 12A of the Income Tax Act. The rejection was based on the grounds that the assessee failed to provide verifiable evidence of beneficiaries served, specific programs conducted, or outcomes achieved, and that the assessee failed to appear for hearings despite notices. The assessment year in question is 2025-26. The appeal was heard on 19.10.2026 and pronounced on 22.10.2026.

What were the issues?

1. Whether the Commissioner of Income Tax (Exemption) was justified in rejecting the application for registration under section 12A of the Income Tax Act, 1961, on the grounds of absence of verifiable evidence of beneficiaries, specific programs, and outcomes, and failure to appear for hearings. Assessee's Contention: The assessee argued that the paper book containing all relevant details, including photographs of premises, accounts, and the trust deed, was submitted to the CIT(E). Acknowledgements of e-proceedings responses dated 23-04-2026 and 08-06-2026 were also submitted as support. Revenue's Contention: The judgment does not record any specific contentions made by the revenue before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AA(1)(b),Section 12AB(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: Shri Tapas Ram Misra & Shri Gangadhar Panda

For Appellant: Shri Hardik Vora, A.R
For Respondent: Shri R. V. Aroon Prasad, CIT-DR

PER TAPAS RAM MISRA, JUDICIAL MEMBER:

The present appeal has been filed by the Assessee against the order dated 29.06.2026 passed by Commissioner of Income Tax (Exemption), Ahmedabad (in short “Ld. CIT(E)”) rejecting the application for registration under section 12A of the Income Tax Act (hereinafter referred to as “the Act”).

2.

The reason given for the rejection in the impugned order is as under:

“3. Under section 12AA(1)(b), the Principal Commissioner or Commissioner on receipt of an a

The order continues below.

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