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Facts
The assessee's application for renewal of registration under section 12AB of the Income Tax Act, 1961, was dismissed by the CIT(E) due to failure to respond to notices and furnish required details. The assessee contended that the notices escaped the trustees' attention and highlighted its long-standing charitable activities and history of registrations.
Held
The Tribunal set aside the CIT(E)'s order and restored the matter to the file of the CIT(E). The CIT(E) is directed to reconsider the assessee's application for renewal of registration on merits after providing a proper opportunity to present its case.
Key Issues
Whether the CIT(E) was justified in dismissing the application for renewal of registration under Section 12AB without affording adequate opportunity to the assessee.
Sections Cited
Section 12AB of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Annapurna Gupta
"ी संजय गग", "ाियक सद" एवं अ"पूणा" गु!ा, लेखा सद" के सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Annapurna Gupta, Accountant Member आयकर अपील सं /ITA No.2619/Ahd/2025 िनधा"रण वष" /Assessment Year : NA Gyan Mandal Laxmipura The CIT (Exemption) बनाम/ At Post Laxmipura Ahmedabad – 380 015 v/s. Khedbrahma Sabarkantha – 383 315 (Gujarat) "थायी लेखा सं./PAN: AAATG 0663 R (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri S.N. Divatia, AR & Shri Samir Vora, AR Revenue by : Shri Alpesh Parmar, CIT-DR सुनवाई की तारीख/Date of Hearing : 04/02/2026 घोषणा की तारीख /Date of Pronouncement: 09/02/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’] dated 30/10/2025. 2. At the outset, the Ld. Counsel for the assessee has brought our attention to the impugned order of the Ld. CIT(E) to submit that the application of the assessee for renewal of registration u/s.12AB of the Income Gyan Mandal Laxmipura vs. CIT(E)
2 Tax Act, 1961 (hereinafter referred to as “the Act”) was dismissed by the Ld. CIT(E) on account of failure of the assessee to respond to the notices issued by the Ld. CIT(E) and for non-furnishing the requisite details. The Ld. Counsel for the assessee has submitted that the assessee is doing the charitable activities in a remote area. That the notices issued by the Ld. CIT(E) escaped the attention of the trustees and, therefore could not be complied with. That the assessee-trust is an old charitable trust which has been granted registration and renewal of registration from time to time and there was no doubt about the charitable activities of the assessee. He, therefore, has submitted that the assessee may be given an opportunity to present its case before the Ld. CIT(E).
Considering the aforesaid submissions, in our view, the interests of justice will be well-served if the assessee be given an opportunity to present its case before the Ld. CIT(E). We, accordingly, set aside the impugned order of the ld. CIT(E) and the matter is restored to the file of the Ld. CIT(E) to consider the application of the assessee for renewal of registration on merits after giving opportunity to the assessee to present its case.