RAJPUR KELVANI MANDAL RAJPUR,VIJAYNAGAR vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 30.10.2025.

The assessee has raised the following grounds of appeal:

In terms of the amended provisions, the assessee filed an application in Form No. 10AB on 28.04.2025 seeking renewal of registration. During the proceedings, the Commissioner of Income-tax (Exemptions), Ahmedabad, issued notices dated 26.06.2025 and 27.08.2025 calling upon the assessee to furnish certain documents and details as prescribed under Rule 17A(2) of the Income-tax Rules, 1962. As recorded by the CIT(Exemptions), no response or adjournment request was received from the assessee. On this basis, the CIT(Exemptions) held that he was not satisfied about the genuineness of the activities of the trust, their conformity with the stated objects and compliance with other applicable laws. Accordingly, by order dated 30.10.2025 passed under section 12A(1)(ac)(ii) read with section 12AB

The assessee is in appeal before us against the order passed by CIT(Exemptions) rejecting the application of the assessee.

Before us, the learned Counsel for the assessee submitted that the order of the CIT(Exemptions) is contrary to law and violative of principles of natural justice. It was submitted that the trust is an old and established charitable institution with clearly charitable objects and genuine activities, which are evident from the trust deed, earlier registration, returns of income and audit reports already available on the Income-tax portal. The Counsel vide his written submissions /Statement of facts submitted that the notices issued by the CIT(Exemptions) were sent to the email ID of the tax consultant and, due to heavy compliance work relating to income-tax and GST filings during that period, the notices inadvertently escaped attention. According to the Counsel, this constituted a sufficient and bona fide cause for non-compliance and the assessee ought to have been granted one more effective opportunity. It was further submitted that at the stage of granting or renewing registration under section 12A/12AB of the Act, the authority is only required to examine the objects of the trust and the prima facie genuineness of its activities and not to reject the application merely on account of procedural lapses. On these submissions, it was prayed that the matter be restored to the file of the CIT(Exemptions) for fresh consideration.

Accordingly, in the interest of justice, we set aside the impugned order dated 30.10.2025 passed by the Commissioner of Income-tax (Exemptions), Ahmedabad, and restore the matter to his file for de-novo consideration of the assessee’s application for renewal of registration under section 12A(1)(ac)(ii) of the Act. The CIT(Exemptions) shall afford a reasonable and effective opportunity of being heard to the assessee, examine the objects of the trust and the genuineness of its activities on the basis of material available on record as well as such further details as may be furnished, and thereafter pass a fresh order in accordance with law.

At the same time, considering the lapse on the part of the assessee in not responding to the notices earlier, we impose a cost of Rs. 1,000/- (Rupees One Thousand only) on the assessee trust, which shall be paid

Needless to say, we have not expressed any opinion on the merits of the claim for registration and all issues are left open for fresh adjudication.

The appeal filed by the assessee is allowed for statistical purposes, subject to the above directions. This Order pronounced in Open Court on 19/02/2026