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Facts
The assessee's application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961, in Form 10AB was rejected by the Ld. CIT(E) because the assessee failed to appear and submit necessary documentary evidence. The assessee now claims readiness to provide the required documents and participate in the proceedings.
Held
The Tribunal accepted the assessee's prayer and set aside the order of the Ld. CIT(E). The issue has been remanded to the Ld. CIT(E) for fresh consideration, allowing the assessee an opportunity to produce sufficient evidence to prove the genuineness of its activities and objects.
Key Issues
Whether the assessee should be given another opportunity to submit documents and evidence for registration under Section 12A(1)(ac)(iii) of the Act after initially failing to do so.
Sections Cited
12A(1)(ac)(iii), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
(िनधा�रण वष� / Assessment Year: (NA) (Physical Hearing) बनाम/ Shree Swaminarayan Mandir The CIT (Exemption), Amreli, Ahmedabad Vs. Pani Darvaja – Amreli, Gujarat-365601 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAETS6992F (अपीलाथ�/Appellant) (��यथ� /Respondent) अपीलाथ� ओर से/ Appellant by Ms. Devina Patel, AR ��यथ� क� ओर से/Respondent by Shri Sanjay Pnglia, CIT DR सुनवाई क� तारीख/Date of Hearing 25/09/2025 घोषणा क� तारीख /Date of Pronouncement 13 /10/2025 आदेश / O R D E R Per Dr. Arjun Lal Saini, A.M Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), [in short “the ld. CIT(E)”], Ahmedabad wherein ld. CIT(E) rejected assessee’s application filed in Form No.10AB u/s 12A(1)(ac)(iii) of the Act and also rejected provisional registration of the assessee, as the assessee did not appear before the Ld. CIT(E) and did not file any documentary evidences to enable him to satisfy about the genuineness of the activities of the Trust, whether the activity of the Trust or institution are in consonance with the objects of the Trust.
At the outset, Ld. Counsel for the assessee submitted that when the proceedings before Ld. CIT(E) were going on then the assessee did not have necessary documents and evidences in his possession to file before the Ld. Shree Swaminarayan Mandir CIT(E). Therefore, in the absence of necessary documents and details, the Ld. CIT(E) denied the registration of the assessee and rejected assessee’s application. However, now the assessee is ready to file the relevant documents and evidences for registration under Section 12AB of the Act before the Ld. CIT(E) and assessee would also participate in the proceedings before the Ld. CIT(E) effectively, therefore, the matter may be restored back to the file of the Ld. CIT(E) for fresh adjudication.
On the other hand, Ld. DR for the Revenue did not raise any objection if the matter is remitted back to the file of the Ld. CIT(E) for fresh adjudication.
We have heard the both the parties and perused the material available on record. We note that the assessee did not appear before the Ld. CIT(E) and did not file the documentary evidences before the Ld. CIT(E) for registration under Section 12A(1)(ac)(iii) of the Act. Since the assessee failed to submit requisite details and documents which were called by the Ld. CIT(E), by issuing various notices to the assessee. Therefore, Ld. CIT(E) rejected the assessee’s application filed in Form 10AB, under Section 12A(1)(ac)(iii) of the Act. We note that Ld. CIT(E) has given three opportunities to the assessee to submit the required documents and details. However, the assessee did not file the entire details and documents before Ld. CIT(E) to prove the genuineness of the activities of the Trust and to prove the objects of the Trust, whether objects of the Trust are in consonance with the activities of the Trust. Therefore, Ld. CIT(E) has rejected the assessee’s application filed in Form No. 10AB under Section 12A(1)(ac)(iii) of the Act. Now the assessee is ready to submit the required details and documents before the Ld. CIT(E) and therefore, Ld. Counsel for the assessee undertook the responsibility that the required documents and details would be file before the Ld. CIT(E), if one more opportunity should be granted to the assessee to plead his case before the Ld. CIT(E). We accept the prayer of the assessee and we set aside the order of Ld.CIT(E) and remand the issue raised by the assessee-trust in the grounds of appeal for fresh consideration by the Ld.CIT(E) with a liberty to the assessee to prove his case by producing sufficient evidence/material to the satisfaction of the Ld.CIT(E). For statistical purpose, the appeal of the assessee is allowed.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 13/10/2025