SHRI AMBIKA SEVA TRUST,AHMEDABAD vs. CIT(EXEMPTION), AHMEDABAD

O R D E R

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

“1. The order passed by CIT (Exemption) is bad in law and required to be quashed. 2. Ld. CIT (Exemption) erred in law and on facts in dismissing application despite of adjournment request and accordingly, Appellant trust pray to set aside order for de novo consideration. 3. Ld. CIT(Exemption) ought to have granted one more opportunity as the case is not barred by limitation. 4. Ld. CIT(Exemption) ought not to have given direction u/s 115TD of the Act.”

Shri Ambika Seva Trust vs. CIT(E) Asst. Year –NA - 2– 3. The brief facts of the case are that the assessee trust had filed an application in Form No. 10AB seeking registration/approval under sub- clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income- tax Act, 1961 ("the Act") before the Commissioner of Income Tax (Exemptions), Ahmedabad. The assessee trust had earlier been granted provisional registration in Form No. 10AC under section 12A(1)(ac)(vi) on 06.01.2025 with effect from Assessment Year 2025-26. During the course of proceedings on the application filed in Form No. 10AB, the learned CIT (Exemptions) issued notices dated 28.03.2025 and subsequently dated 09.09.2025 asking the assessee to furnish various details and documents in support of its claim for registration. In response to the first notice, the assessee sought adjournment vide reply dated 13.04.2025. Thereafter, the assessee was granted a final opportunity vide notice dated 09.09.2025 requiring the assessee to furnish the requisite details on or before 12.09.2025. However, CIT (Exemptions) noted that the assessee failed to submit any reply or clarification and also did not furnish certain essential documents prescribed under Rule 17A(2) of the Income-tax Rules viz self-certified copies of the annual accounts for preceding years and a note on the activities of the trust. The CIT (Exemptions) observed that in the absence of such information and supporting material, it was not possible to satisfy himself regarding the genuineness of the activities of the trust or whether such activities were in consonance with the objects of the trust as required under section 12AB of the Act. The CIT (Exemptions) placed reliance on the decisions of the Hon’ble Supreme Court in the cases of CIT v. Dawoodi Bohara Shri Ambika Seva Trust vs. CIT(E) Asst. Year –NA - 3– Jamat and New Noble Educational Society, wherein it has been held that the competent authority is required to examine the genuineness of the activities and may call for accounts and other documents to record satisfaction before granting registration. In view of the failure of the assessee to furnish the requisite details and documents and in the absence of material to establish the genuineness of its activities, the learned CIT (Exemptions) rejected the application filed in Form No. 10AB under section 12A(1)(ac)(iii) of the Act and also cancelled the provisional registration granted earlier.