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Facts
The assessee-trust applied for registration under section 12AB of the Income-tax Act, 1961. The CIT(E) rejected the application, stating that the assessee had not provided evidence for its charitable activities. The assessee argued that the rejection was hasty and they were not given a proper opportunity to present their case.
Held
The Tribunal held that the CIT(E) had rejected the application within 10 days of filing, without affording a reasonable opportunity to the assessee to present its case. Therefore, the matter was remitted back to the CIT(E) for fresh consideration.
Key Issues
Whether the CIT(E) provided adequate opportunity to the assessee before rejecting the application for registration under Section 12AB of the Income-tax Act.
Sections Cited
12AB, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeals filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 26.12.2024 in rejecting application for registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”).
Digital Security Association of India :- 2 -:
The Ld. CIT(E) has rejected the application filed by the assessee on 16.12.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act, seeking registration u/s. 12AB of the Act. The Ld. CIT(E), while rejecting the application has observed that the assessee had not submitted any evidence in support of its contention that it was providing Religious, Relief of the Poor, Education, Medical Relief and Advancement of any other objects of general public utility.
The Ld. Authorized Representative (A.R.) for the assessee submitted that the assessee-trust is engaged in the education of cyber security and therefore, falls under charitable activity and entitled for registration u/s 12AB of the Act. The Ld. AR has further pointed out that the application was filed on 16.12.2024 and order rejecting the application was passed on 26.12.2024, within 10 days of filling the application, therefore proper opportunity was not provided and in the interest of justice, one more opportunity be provided to the assessee to substantiate its case before the Ld. CIT(E).
On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
Digital Security Association of India :- 3 -:
We have heard both the parties and gone through the order of the Ld. CIT(E). The assessee-trust made an application on 16.12.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act, seeking registration u/s. 12AB of the Act. The Ld. CIT(E) has issued notice calling for details in seven objects on 17.12.2024 and the order was passed rejecting the application on 26.12.2024 i.e., within 10 days of the filing of application. The Ld. CIT(E) has noted that the assessee has not furnished any documentary evidence that income received was not voluntary and has not provided the details of membership fees shown in the balance sheet. Considering the submissions and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case before Ld CIT(E).
Accordingly, we remit the matter back to the file of the Ld. CIT(E) for fresh consideration of the application, after affording the assessee a reasonable opportunity of being heard. The assessee is also directed to comply with all notices issued by the Ld. CIT(E) and furnish all relevant details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
Digital Security Association of India :- 4 -:
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 19th day of November, 2025 at Chennai.