RUKHMANIDEVI RAMKUMAR TOSNIWAL FOUNDATION,SURAT vs. CIT(EXEMPTION), AHMEDABAD, SURAT

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ITA 69/SRT/2026Status: DisposedITAT Surat22 October 20263 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the assessee's application for registration under Section 12A was pending before the CIT(E). Consequently, it was deemed appropriate to remand the matter back to the file of the CIT(E). The CIT(E) was directed to grant the 80G approval after verifying the details submitted by the assessee and adjudicating the application in accordance with the provisions of the Income Tax Act. The Tribunal emphasized that the assessee must be given an opportunity of hearing, adhering to the principles of natural justice. The specific issue of whether a reasonable opportunity of hearing was denied was not explicitly decided, but the remand implicitly addresses this by ensuring future compliance. The Tribunal did not decide the merits of the 12A registration or the sufficiency of the provisional 12A registration for the 80G application.

What were the facts?

The assessee, Rukhmanidevi Ramkumar Tosniwal Foundation, filed an application for approval under Section 80G(5) of the Income Tax Act, 1961, in Form No. 10AB on June 16, 2025. The Commissioner of Income Tax (Exemption) [CIT(E)], Ahmedabad, requested further details on August 26, 2025. The assessee submitted a certificate of incorporation but failed to provide the last three years' audit reports, accounts for assessment year 2025-26, and trust deed/MOU details. The CIT(E) rejected the application on November 21, 2025, citing the lack of a valid registration under Section 12A/12AB. The assessee appealed this order to the Income Tax Appellate Tribunal (ITAT), Surat Bench.

What were the issues?

1. Whether the learned CIT(E) erred in rejecting the assessee's application for approval under Section 80G(5) of the Act without providing a reasonable opportunity of being heard? 2. Whether the learned CIT(E) erred in rejecting the assessee's application for registration under Section 80G(5)(iii) on the ground that the assessee lacked valid registration under Section 12A/12AB, when the assessee possessed a provisional registration under Section 12A at the time of application? Assessee's Contentions: - The CIT(E) rejected the application without giving a reasonable opportunity of being heard. - The rejection was based on the lack of valid Section 12A/12AB registration, but the assessee had a valid provisional registration under Section 12A when the 80G application was filed. - The assessee requested the matter be remanded to the CIT(E) for granting 80G approval after furnishing the necessary details, as the Section 12A registration application was also pending. Revenue's Contentions: - The Ld. Departmental Representative relied upon the order of the CIT(E) passed under Section 80G of the Act.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Respondent: Shri Aashish Pophare, CIT(DR)
Pronounced: 22.10.2026

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.69/SRT/2026 (निर्धारण वर्ा/Assessment Year: NA) RUKHMANIDEVI RAMKUMAR CIT(EXEMPTION), TOSNIWAL FOUNDATION AHMEDABAD 2-367/368 TOSNIWAL HOUSE ROOM NO. 609, FLOOR 6, MOTO DASTUR MOHALLO, AAYKAR BHAWAN RUSTAMPURA S.O (SURAT), (VEJALPUR), SURAT-395002, GUJARAT NR, SACHIN TOWER, Vs. 100 FOOT ROAD, ANANDNAGAR - PRAHLADNAGAR, AHMEDABAD-380015, GUJARAT अपीलधर्थी Appellant प्रत्यर्थी Respondent

Permanent Account Number of Assessee: AAMCR5275P

अपीलधर्थी द्वारा/Appellant represented by: Ms. Chaitali Shah, CA प्रत्यर्थी द्वारा/Respondent represented by: Shri Aashish Pophare, CIT(DR)

सुनवाई की तारीख / Date of conclusion of hearing: 04.08.2026 घोषणा की तारीख / Date of pronouncement: 22.10.2026 O R D E R PER : SUCHITRA KAMBLE, J M: The appeal filed by the assessee is against the order passed by the Commissioner of Income Tax (Exemption), Ahmedabad [in short “CIT(E)”] dated 21.11.2025.

2.

The assessee has raised the following grounds of appeal: “1. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(E) has erred in rejecting the application of assessee for approval u/s.

ITA No.69/SRT/2026 RUKHMANIDEVI RAMKUMAR TOSNIWAL FOUNDATION

80G(5) of the Act without giving reasonable and sufficient opportunity of being heard.

2.

On the facts and in circumstances of the case as well as law on the subject, the learned CIT(Exemption) has erred in rejecting assessee's application in Form No. 10AB for registration u/s. 80G(5)(iii) on the ground that assessee does not have valid registration u/s. 12A/12AB. Assessee submits that the assessee had valid provisional registration u/s.12A at the time of filling application.

3.

It is therefore prayed that order of CIT(Exemption) passed u/s. 80G(5) of the I.T. Act, 1961 may please be set aside and he may be directed to pass fresh order granting approval u/s. 80G(5)

4.

Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 3. The assessee filed application for approval under sub clause (B) to clause (iv)/clause (iii) of first proviso to sub section (5) of section 80G of the Income Tax Act, 1961 (in short “the Act”) in Form No.10AB electronically on 16.06.2025, thereafter the assessee was asked on 26.08.2025 to furnish the details. At the time of filing application u/s 80G the assessee has filed Form 10AC certificate of incorporation but has not filed the last 3 years audit reports and accounts of assessment year 2025-26 as well as the object of trust deed/MOU and other related documents. The CIT(E) rejected the application vide order dated 21.11.2025 thereby stating that the applicant does not have any valid order for registration u/s 12A/12AB of the Act.

4.

Being aggrieved by the order u/s 80G of the Act, the assessee filed appeal before us.

5.

The Ld. Authoritised Representative (in short “the Ld. AR”) submitted that the application for registration u/s 12A is pending before the CIT(E) and therefore the issue of 80G also be remanded back to the file of the CIT(E) as the details will be filed before the CIT(E).

ITA No.69/SRT/2026 RUKHMANIDEVI RAMKUMAR TOSNIWAL FOUNDATION

6.

The Ld. Departmental Representative (in short “Ld. DR”) relied upon the order of the CIT(E) passed u/s 80G of the Act.

7.

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee’s application u/s 12A is already pending before the CIT(E). So it will be appropriate to remand back this matter to the file of the CIT(E) for granting 80G approval after verifying the details filed by the application and adjudicate the same as per Income Tax Act. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice.

8.

In result appeal of the assessee is partly allowed for statistical purpose.

Order pronounced in the open court on 22.10.2026

Sd/- Sd/- (B.M. BIYANI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat; Dated: 22.10.2026 * Kishore, Sr. P.S. Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Surat 5. Guard File By order,

Assistant Registrar/Sr.PS/PS ITAT, Surat Bench

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