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Facts
We Care Foundation, the appellant, applied for registration under Section 12A of the Income Tax Act, 1961, which was rejected by the CIT(E) due to non-submission of details. The appellant filed an appeal belatedly by 154 days, arguing that notices were sent to an incorrect email ID belonging to their consultant, who failed to relay the information, leading to a decision without their representation.
Held
The Tribunal condoned the delay in filing the appeal, accepting it was not deliberate. It remanded the matter back to the CIT(E) for fresh adjudication, directing that the appellant be given a proper opportunity of hearing. A cost of Rs. 5000 was imposed on the appellant to be paid to the Prime Minister's Welfare Fund within two weeks for not explaining the previous non-reply to notices.
Key Issues
Whether the CIT(E) erred in rejecting the Section 12A registration application without providing an adequate opportunity of hearing, and if the appeal should be remanded for fresh adjudication.
Sections Cited
12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar
आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 22-01- 2025 passed by CIT(Exemption), Ahmedabad.
The grounds of appeal
1. are as under:- “1. The learned CIT (Exemption), Ahmedabad erred in not granting the adequate opportunity being heard / giving submission, such opportunity is requested to be deleted.
2. The learned CIT (Exemption), Ahmedabad erred in rejecting the Application seeking the exemption under section 12A of the Income Tax Act, 1961, such rejection requested to be deleted.
We Care Foundation Your appellant prays for leave to add, to alter and / or to amend the above ground before the final hearing of the appeal.”
The applicant/appellant filed application for registration of the trust in Form 10AB under Sub-clause (iii) of clause (ac) of sub-section (1) of Section 12A of Income Tax Act, 1961. The said application was rejected and provisional registration was also cancelled by the CIT(E) vide order dated 22.01.2025.
Being aggrieved by the said order dated 22.01.2025 the applicant/appellant filed appeal belatedly by 154 days. The Ld. AR submitted that after filing of application for registration under Section 12A of the Income Tax Act, 1961, the notices were issued on the email id parthit12a@gmail.com which is not the email id of the trust. This was the email id of Parth Enterprise (Trust’s consultant), but the said trust consultant failed to call for the details which were asked vide notices issued on 02.12.2024, 26.12.2024 and 16.01.2025. Therefore, the matter was decided without any representation on behalf of the applicant/appellant and without any submissions/details on trust’s behalf. Thus, the delay in filing the present appeal is not deliberate. Hence, delay is condoned.
From the submissions of both the Ld. AR and Ld. DR as well as from the records it appears that the applicant/appellant has not filed details before the CIT(E)
We Care Foundation and not responded the notices. The Ld. AR requested that the applicant/appellant be allowed to file the details and also be granted hearing, therefore, prayed that the matter may be remanded back to the file of CIT(E) for fresh adjudication. Therefore, it will be appropriate to remand back this matter to the file of the CIT(E) for verifying the details filed by the applicant/appellant and decide/adjudicate the matter a fresh on merit and as per Income Tax Statute. Needless to say, the applicant be given opportunity of hearing by following principles of natural justice. Since the applicant/appellant has not given any explanation why the notices issued by the CIT(E) were not replied and details were not filed before the CIT(E), we direct the applicant /appellant to pay cost of Rs. 5000 to the Prime Minister’s Welfare Fund within two weeks from the receipt of this order. Thus, the appeal of the applicant/appellant is partly allowed for statistical purpose.
In result, appeal of the applicant/appellant is partly allowed for statistical purpose. Order pronounced in the open court on 17-10-2025 Sd/- Sd/- (Makarand V. Mahadeokar) (Suchitra Kamble) Accountant Member Judicial Member Ahmedabad : Dated 17/10/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. 3 We Care Foundation By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद