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Facts
Multiple assessee-trusts applied for renewal of registration under Section 12A and approval under Section 80G of the Income Tax Act. The CIT(E) dismissed these applications for non-compliance, as the authorized representative (AR) failed to respond to notices due to heavy workload and personal reasons during a peak tax filing period.
Held
The tribunal found that the CIT(E) did not provide adequate opportunity to the assessees. It set aside the impugned orders and restored all matters to the CIT(E) for a fresh decision after allowing proper opportunity to the assessees to present their case and furnish the required details.
Key Issues
Whether the CIT(E) can dismiss renewal applications for registration or approval under Sections 12A/80G without providing adequate opportunity for compliance, especially when non-compliance is attributable to the AR's pre-occupation during peak filing season.
Sections Cited
12AB, 12A, 80G
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Income Tax Appellate Tribunal, “ B ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The captioned appeals have been preferred by the different assessees against the separate orders of the Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as “ CIT(E)] dated 29/10/2025 (in 8 appeals) and dated 30/10/2025 (in one appeal, i.e. ITA 2187/Ahd/2025). Since common facts and issues are involved in all these appeals, these were heard together and are being disposed of by a consolidated order. Assessee’s appeal in is taken as a lead case for the purpose of narration of facts.
:- 2. The brief facts of the case are that the assessee-trust is already registered u/s.12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) and the said registration is valid from Assessment Year (AY) 2022- 23 to AY 2026-27. It has been submitted that as per the provisions of the Income Tax Act, the assessee-trust has to apply for renewal of registration u/s.12A of the Act before the expiry of the six months of the assessment year upto which the registration is valid. As the assessee-trust registration is valid upto AY 2026-27, the assessee-trust had to file the renewal application on or before 30/09/2025. Accordingly, the assessee-trust filed renewal application under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A of the Act in the prescribed Form 10AB of the Act. The assessee-trust also attached the requisite documents, e.g. trust-deed, trust-registration certificate, approval order u/s.12A of the Act, Audit Report upto 31/03/2024, etc.. However, the & 8 Others Omkar Cheritable Trust Bhavnagar vs. CIT(E) & Ors.
Ld. CIT(E) issued notices dated 26/09/2025 and 14/10/2025 calling for further details/documents from the assessee-trust. However, since there was no response from the assessee-trust, the Ld. CIT(E) dismissed the assessee’s appeal for want of requisite details.
Being aggrieved by the said order of the Ld. CIT(E), the assessee-trust has come in appeal before us.
The Ld. AR of the assessee has submitted that in the month of September, the personal return filing due date was 15/09/2025 and the due date for filing the Tax Audit Report was 30/10/2025 and there were Diwali holidays also. He has submitted that due to rush of work, he could not access the email of the assessee-trust and, therefore, could not notice the email of the Ld.CIT(E) calling for the requisite further details and, therefore, the directions of the Ld. CIT(E) could not be complied with. He has submitted that thereafter, the Ld. CIT(E) without providing further opportunity to the assessee, dismissed the appeal of the assessee for renewal of registration u/s.12A of the Act. The Ld. AR has submitted that the assessee-trust has a fair case on merits and that they were ready with the requisite documents and further requested that the matter may be restored to the file of Ld. CIT(E) for reconsideration of renewal application of the assessee so as to ensure continuity of the registration of the assessee-trust.
The Ld.DR, however, has relied upon the findings of the Ld. CIT(E).
We note that the Ld. CIT(E) has not given proper and adequate opportunity to the assessee to present its case. The Ld. AR of the assessee has & 8 Others Omkar Cheritable Trust Bhavnagar vs. CIT(E) & Ors.
5 explained the reasons for non-compliance of the directions of the Ld. CIT(E) as he was pre-occupied with income tax filing and audit report, etc. during the months of September-October 2025.
6.1. Under the circumstances, In our view, the interests of justice will be well-served if the assessee-trust be given an opportunity to present its case before the Ld. CIT(E). Accordingly, the impugned order of the Ld. CIT(E) is hereby set aside and the matter is restored to the file of the Ld. CIT(E) for a decision afresh on the application of the assessee. Needless to say, the Ld. CIT(E) will provide proper and adequate opportunity to the assessee to present its case and the assessee will also furnish promptly all the details/information as may be called for by the Ld. CIT(E). The Ld. CIT(E), thereafter, will decide the application of the assessee in accordance with law. to 2101/Ahd/2025 & ITA No.2187/Ahd/2025:-
It is pertinent to mention here that the is relating to application of the assessee-trust for renewal of approval under clause (ii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961, whereas the other appeals are relating to renewal of registration u/s.12A of the Act. Since the facts and issues involved in all the captioned appeals are identical and even the same Accountant/AR represents in all the cases, therefore, our finding given above mutatis mutandis apply to all the appeals.
In view of our above findings given above, the impugned orders of the CIT(E) in all the captioned appeals are hereby set aside and the matter is & 8 Others Omkar Cheritable Trust Bhavnagar vs. CIT(E) & Ors. restored to the file of the Ld. CIT(E) For decision afresh in line with the directions as given above in ITA No.2094/Ahd/2025.
In the result, all the appeals of the different assessees are treated as allowed for statistical purposes.
Order pronounced in the Open Court on 05 /12/2025.