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Facts
The Ramkrushna Sharda Sevashram trust, incorporated in 2019 with educational, medical, and cultural objectives, initially obtained provisional registrations under section 12A. However, its application for regular registration under section 12A(1)(ac)(iii) was rejected because the trust failed to respond to a notice, leading to the cancellation of its provisional registration. A subsequent application for registration was also rejected by the CIT(E) as non-maintainable.
Held
The Tribunal observed that the assessee was not afforded a proper opportunity to explain its case and submit supporting documents for registration under section 12A(1)(ac)(iii). Consequently, the Tribunal remitted the matter back to the Commissioner of Income Tax (Exemption) with directions to grant the assessee a fair and due opportunity to present its case and submit all necessary documents.
Key Issues
Whether the rejection of the trust's application for regular registration under Section 12A(1)(ac)(iii) without providing a proper opportunity of being heard was justified.
Sections Cited
12A(1)(ac)(iii), 11, 12
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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
आयकर अपीलीय अिधकरण, राजकोट �ायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER & SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.528/RJT/2025 (�नधा�रण वष� / Assessment Year: (NA) Ramkrushna Sharda Sevashram Vs. CIT(Exemption), Room No.609, 6th Floor, Aayakar Nr. Swami Vivekanand High School, Anjar – Kachchh – 370110 Bhavan, Nr. Sachin Tower, 100ft Road, Anandnagar-Prahladnagar Road, Ahmedabad-380015 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AADTR9703J (Appellant) (Respondent) Appellant by : Ms. Chaunauti Dholakia, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT(DR) : 01/10/2025 Date of Hearing Date of Pronouncement : 30/12/2025 आदेश / O R D E R Per, Dinesh Mohan Sinha, JM:
This appeal is filed by the Assessee as against the Rejection order dated 08.08.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying Registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
(ITA 2. Grounds of appeal raised by the assessee, are as follows: 1) The Learned CIT (Exemption) erred in law and is not just in 1 facts in rejecting the application for regular registration under section 12A(1)(ac)(iii) of the Act.
2The Learned CIT( Exemption) erred in law and is not just in facts of the case in treating the application as non-maintainable and liable to be rejected without going into merits 3 The Learned CIT(Exemption) erred in law and is not just as facts of the case in holding that as the earlier application for registration under section 12A(1)(ac) (iii) was rejected and also the provisional registration is cancelled, the present application is non-maintainable. 4 Ground 5 The Learned CIT(Exemption) erred in law in rejecting the present application without giving proper opportunity of being heard. 6 The appellant trust craves the leave to add, amend, alter, vary OR withdraw any of the above grounds of appeal before OR at the time of hearing of appeal.
3. Brief facts of the case that The Appellant Trust is incorporated on 11.01.2019. Main objects of the trust are as under: To conduct educational and medical activities. To provide technical, computer education at free or concessional rate. To provide books, educational kit and other relief to poor and needy students. To provide medical relief to poor and needy people. To provide relief to poor in all manner. To conduct activities related to Indian Art and Culture.
4. The Trust applied for provisional registration under section 12A for A.Y. 2021-22 on date 15.03.2021 vide Acknowledgment No. 290995070150321. The order granting provisional registration under section 12A from A.Y. 2021-22 to AY 2023-24 was issued on date 27.05.2021. By mistake the trust again filed application for provisional registration under section 12A on date 30.03.2022 vide Acknowledgment No. 482089280300322. Order granting provisional registration under section 12A from Α.Υ.2022-23 to A.Υ. 2024- 25 was issued on date 06.04.2022. After noticing the Bonafide mistake committed in filing application for registration, the trust applied for regular registration under section 12A(1)(ac)(iii) on date 26.06.2024 vide Acknowledgment No. 507295330260624. But due to oversight, the trustees did not notice the receipt of mail related to proceedings under section Page 2 of 4 12A(1)(ac)(iii). Hence the assessee was not able to file response for the notice within specified time limit. Hence, the application for regular registration under section 12A was rejected and also provisional registration was cancelled on date 13.11.2024. As the appellant trust has already commenced activities and also obtained benefit of exemption under section 11 and 12 in earlier previous years. The trust again applied for registration under section 12A(1)(ac)(iii) of the Act again on date 21.03.2025 vide Acknowledgment No. 909237720210325. The application was rejected on date 08.08.2025 by treating the application for registration as non-maintainable.
Aggrieved by such order, the assessee has challenge the legality and validity of impugned order dated 23.12.2024 of the Ld. CIT(E) by filing the appeal before us.
During the course of hearing, Ld. AR submitted that registration that the assessee trust should be given an opportunity to explain the case.
On the contrary, the Ld. DR for the revenue relied on the order of the Ld. CIT(E).
We have heard both the parties and perused the material available on record. We note because of facts and circumstances of the case the assessee could not get due opportunity to explain the case and submit the documents in support of the application u/s. 12(1)(ac)(iii) of the Act. We note that the request of the assessee to granting an opportunity. We are of the view to accept the request of the assessee, we remit the matter back to the file of the Ld.CIT(E) with the direction to the assessee to submitted all required documents as required by the Ld.CIT(E), therefore, due opportunity should be given to the assessee to explain the case before the Ld.CIT(E). That the said application for registration of trust is disposed off, accordance with law.
In the result, the appeal of the assessee is allowed, for statistical purposes.
Order pronounced in the open court on 30/12/2025.