PATHANJALI YOGA TRAINING AND RESEARCH CENTRE CHARITABLE SOCIETY,ERNAKULAM vs. COMMISSIONER OF INCOME TAX (EXEMPTION), KOCHI

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ITA 738/COCH/2025Status: DisposedITAT Cochin06 November 2025AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the Learned CIT(E) rejected the application in Form No. 10AB for registration under Section 12A of the Income-tax Act, 1961, due to the assessee's failure to furnish an explanation to the show cause notice. The assessee's A.R. submitted that the rejection occurred because the assessee did not receive the notice via email and requested a remand for fresh adjudication. The Tribunal, considering the principles of natural justice, was of the opinion that the assessee should be provided with another opportunity of hearing. Accordingly, the Tribunal set aside the order of the Learned CIT(E) and remitted the matter back to the file of the Learned CIT(E) for fresh adjudication in accordance with law. The assessee was directed to appear before the Learned CIT(E) on the date of hearing without fail and furnish complete details. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Pathanjali Yoga Training and Research Centre Charitable Society, filed an appeal against the order of the Commissioner of Income Tax (Exemption) [CIT(E)], Cochin, dated 15.09.2025. This order rejected the assessee's application in Form No. 10AB for registration under Section 12A of the Income-tax Act, 1961. The application was filed on 28.03.2025. The CIT(E) rejected the application due to the assessee's non-response to notices issued. The assessee contended that they did not receive the notices via email, while the CIT(E) proceeded with the rejection based on the failure to submit an explanation to a show cause notice. The appeal concerns Assessment Year 2025-26.

What were the issues?

1. Whether the Learned Commissioner of Income Tax (Exemption) erred in rejecting the application for registration under Section 12A of the Income-tax Act, 1961, without providing the assessee with a proper opportunity of being heard, thereby violating principles of natural justice? Assessee's Contention: The Learned Authorized Representative (A.R) argued that the Learned CIT(E) rejected the application without affording a hearing to the assessee and requested an opportunity to present their case. The assessee also claimed non-receipt of notices via email. Revenue's Contention: The Learned Departmental Representative (DR) relied on the order passed by the Learned CIT(E).

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM & SHRI MANU KUMAR GIRI, JM

For Appellant: Shri G. Surendranath Rao, CA
For Respondent: Shri Sanjit Kumar Das, CIT-DR
Hearing: 04.11.2025Pronounced: 06.11.2025

O R D E R PER MANU KUMAR GIRI, JM: Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemption), Cochin [hereinafter “CIT(E)”] dated 15.09.2025 in rejecting the application in Form No.10AB seeking registration u/s 12A of the Income-tax Act, 1961 (hereinafter “the Act”).

2.

The assessee has filed an application dated 28.03.2025 in Form No.10AB seeking registration u/s 12A of the Income-tax Act, Pathanjali Yoga Training and Research Centre Charitable Society 1961. The Ld. CIT(E) has rejected the aforesaid application in Form No.10AB on account of non-response to the notices issued. The assessee has not received the aforesaid notice through email, however the Ld. CIT(E) rejected the application, as the assessee has failed to submit an explanation in response to the show cause notice.

3.

The Ld. Authorized Representative (A.R) of the assessee has submitted that Ld. CIT(E) has rejected the application without hearing the assessee therefore, he prayed for one more opportunity may be provided to substantiate his case before Ld. CIT(E).

4.

The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of the Ld. CIT(E) .

5.

We have heard the rival contentions, perused the materials available on record. On perusal of the order of Ld. CIT(E), we find that the Ld. CIT(E) has rejected the application in Form No.10AB seeking registration u/s 12A of the Income-tax Act, 1961 as the assessee has failed to furnish any explanation of the show cause notice. The Ld. A.R has submitted that the Ld. CIT(E) has rejected the application on account of the fact that the assessee has not received any notice through email and, therefore it is requested that the case may be remanded back to the Ld. CIT(E) for fresh adjudication. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(E).

Pathanjali Yoga Training and Research Centre Charitable Society Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter back to the file of the Ld. CIT(E) to adjudicate this issue afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 6th November, 2025 at Cochin.

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