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Facts
The assessee, a registered society, applied for registration/approval under Section 12AB and 80G of the Income Tax Act. The CIT(E) rejected the applications, citing non-submission of required documents and evidence to substantiate the genuineness of its charitable activities.
Held
The Tribunal held that while the assessee failed to provide all necessary documents, it was important to provide one last opportunity to fulfill the requirements. The Tribunal set aside the impugned order and remanded the case back to the CIT(E) for de novo consideration.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration/approval due to non-submission of documents, and if a further opportunity should be granted.
Sections Cited
253, 12AB, 80G(5), 12A(1)(ac)(iii), 80G(5)(iii), 12A(1)(ac)(vi), 80G(5)(iv), 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M JOSHI
the order bearing Number ITBA/Exm/F/Exm45/2024- 2025/1071655004(1) dated 28.12.2024 passed by the Ld. CIT(E), Bhopal by virtue of which applications of the assessee trust in Form 10AB for grant of registration/approval u/s 12AB
Terapanth Mahila Mandal & 225/Ind/2025 & 80G(5) of the Act were rejected and so also provisional registrations granted earlier were cancelled. The aforesaid order is hereinafter referred to as the “Impugned order”.
2. FACTUAL MATRIX 2.1 The assessee is a registered society under Registrar of Societies Indore Division, Indore and bears regd. No.03- 27/03/11375/09 dated 21.01.2009 (Page 20 of paper book).
2.2 Basis paper book page 20. Aim’s of the society is to support woman by providing free medical checkups and assistance whenever needed. They help woman in their mental health and personal growth. They also aim to empower and assist woman in need and also try to promote their education in the society.
2.3 That the assessee had applied in Form 10AB for registration u/s 12A(1)(ac)(iii) & 80G(5)(iii) under the new provisions of the Income Tax Act and opportunity letters were issued to the assessee and various documents/details were called for, to process the applications and to verify the objects and genuineness of the activities of the assessee. That in response, the assessee has submitted his reply along with some documents which were examined, considered and were placed on record.
Terapanth Mahila Mandal & 225/Ind/2025 2.4 That the Ld. CIT(E) in his “impugned order” at para 2 has recorded as under:-
“2. During the examination of the documents/information submitted by the assessee society it is observed that various details / information sought have not been provided. The details of the same are as under-
On examination of Audit Reports for F.Yrs. 2022-23 & 2023- 24; expenses under the various heads such as Diwali Expenses, Gift Expenses, Women day celebration program expenses, Program expenses, general meeting expenses, Donation (chairs), Blanket distribution, Food Distribution & Medical Kit Expenses, Medical Expenses etc. have been claimed in Income & Expenditure Account; no proof/supporting evidences of expenses Incurred were submitted which substantiate the genuineness of charitable/religious activities carried out by the society, and this fact is also corroborated with the statements of bank account(s) maintained with ICICI Bank, Further, details/list regarding beneficiaries of the activities are also not provided.
With respect to the details/documents requisitioned in point no. 4 of the query notice dated 29.10.2024 regarding note specifying the main area of the charitable / religious activities carried out during last three years with documentary proof, location & type of the activities, photos etc. The assessee in reply only attached few photographs which could not substantiate the activities of the trust as per registered objects/by-laws as no other specific supporting documents, location of the activities, nature of the activities etc. were provided.
With respect to the details/documents requisitioned in point no. 12 of the query notice dated 29.10.2024 regarding submission of title deed / rent agreement or No-objection Certificate of the premises, where activities of the society are being carried out. The assessee in its reply has not submitted any details/documents and merely, replied as NA (Not applicable).
4. Further, it is also found that Unique Document Identification Number (UDIN) is not mentioned in the Audit Reports of F.Y. 2021-22 & 2022-23 submitted by the assessee. As per the decision of the Council of ICAI, UDIN has been made mandatory w.e.f. 01.07.2019. Hence, the Audit Reports
Terapanth Mahila Mandal & 225/Ind/2025 submitted by the assessee is not as per the guidelines of ICAI and it seems that the Audit Reports have been prepared without maintaining the requisite Books of Accounts/details”.
2.5 That the Ld. CIT(E) in para 3 of the “impugned order” has also recorded as under:-
“3. Various documents/details/information requisitioned vide query notice(s) are absolute essential in nature to verify the objects & activities of the assessee and to ascertain the eligibility of the assessee for registration/approval u/s 12A(1)(ac)(iii) and 80G(iii) of the Act.
2.6 That the Ld. CIT (E) in view of the aforesaid has held as under:-
“In view of above, due to non-submission of requisite documents/details, the applications of the assessee trust in Form 10AB for grant of registration/approval u/s 12AB and 80G(5) of the Income Tax Act is/are hereby rejected and provisional registration certificates granted u/s 12A(1)(ac)(vi) & 80G(5)(iv) in Form 10 AC by the CPC is/are also hereby cancelled as per provisions of the Income Tax Act”.
2.7 That the assessee being aggrieved by the “impugned order” has preferred the instant appeal before this Tribunal and has raised following grounds of appeal in the Form No.36 against the “impugned order” which are as under:-
“1. That on the facts and in the circumstances of the case Ld. CIT(E) Bhopal has erred in rejecting the application filed by assessee U/s 80G of the Income Tax Act, 1961. 2. That the impugned order so passed by Ld. CIT(E) is illegal and wrong.
3. That the assessee craves leave to add, amend, alter or delete any of the grounds of appeal and all the above grounds are without prejudice to each other”.
Terapanth Mahila Mandal & 225/Ind/2025
3. Record of Hearing 3.1 The hearing in the matter took place before this Tribunal on 19.11.2025 when the Ld. AR for and on behalf of the assessee society appeared before us and placed on the record of this tribunal a paper book containing pages 1 to 80 and yet “another set of documents” from pages 1 to 4. The Ld. AR then contended that both the applications u/s 12A & 80G were filed under Form 10AB on 22.06.2024 and invited our attention to pages 3 & 4 of “another set of documents”. It was next submitted that notice was dated 29.10.2024 and proceeding closure date was 28.12.2024. Our attention was invited to page 1 of “another set of documents”. It was submitted that on same date i.e. 28.12.2024 the “impugned order” was passed by the Ld. CIT(E). The Ld. AR therefore prayed that one more and final opportunity be provided to the assessee society so that they can be meet all other requirements/requisitions of Ld. CIT(E) and that the same would meet the ends of justice. The Ld. DR appearing for and on behalf of the revenue contended that the assessee society could not file the required details which are enumerated by the Ld. CIT(E) in para 2 of the “impugned order”
Terapanth Mahila Mandal & 225/Ind/2025 [which we have already reproduced (supra)]. It was also submitted by the Ld. DR that the Ld. CIT(E) had provided sufficient time to the assessee and the assessee society filed reply at the fag end on 05.12,2024 (page 6 of paper book). Therefore no infirmities can be found with the “impugned order”.
Observations,findings & conclusions.
4.1 We now have to decide the legality, validity and the proprietery of the “impugned order” basis records of the case and rival contentions canvassed before us.
4.2 We have carefully perused the records of the case as presented to this Tribunal by both the Ld. AR & the Ld. DR to determine the legality, validity of the “impugned order” basis law and by following the due process.
4.3 We basis records of the case and after hearing and upon examining the contentions are of the considered view that in the peculiar facts and circumstances of the case one more opportunity should be provided to the assessee society as and by way of last chance so that all the necessary material particulars could be submitted and filed by the assessee society as is sought by the Ld. CIT(E) (supra). Accordingly in order to meet the ends of Page 6 of 8
Terapanth Mahila Mandal & 225/Ind/2025 justice that we deem it fit to set aside the “impugned order” and remand the proceedings back to Ld. CIT(E) on denovo basis.
Assessee society is directed to fully cooperate with the department and not to seek any adjournments on any flimsy grounds.
Order 5.1 In the premises drawn up by us the “impugned order” is set aside and case of the assessee society is remanded to Ld. CIT(E) on denovo basis.
5.2 In result appeal of the assessee is allowed for statistical purpose.
Since the facts and circumstances are almost identical and similar) this appeal too was heard simultaneously and is disposed off by this order and the issue is too remanded back to the file of Ld. CIE(E) on denovo basis mutadis mutandis.
Terapanth Mahila Mandal & 225/Ind/2025 5.4 Finally in result both the appeals are allowed for statistical purpose.
Order pronounced in open court on 27.11.2025.