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Facts
Multiple Assessee Trusts appealed ex-parte orders from the CIT(E) denying final registration under Section 12AB of the Income Tax Act, 1961. The trusts had previously received provisional registration and applied for final registration, but the CIT(E) passed ex-parte orders due to their non-appearance, despite having provided two opportunities for hearing.
Held
The Tribunal, invoking the principle of Natural Justice, set aside the ex-parte orders passed by the CIT(E). It directed the CIT(E) to grant one more opportunity of hearing to each assessee Trust, subject to the payment of a cost of Rs. 5,000/- per trust to the Income Tax Department within two weeks.
Key Issues
Whether the ex-parte denial of final registration under Section 12AB of the Income Tax Act, 1961, without a proper hearing, is valid.
Sections Cited
Section 12AB of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
Girdharnagar Railway Overbridge, Himatnagar, Gujarat-383001 PAN:AABTH3916R Hare Krushna Gau Shala CIT(Exemption), 2652/Ahd/2025 Trust Ahmedabad C-48, Madhvan Residency, Bypass Raod Modasa, Gujarat-383315 PAN:AACTH7961D Assessee Adjournment Application filed Represented by: Revenue Shri R.P. Rastogi, CIT-DR Represented by: Date of Hearing 05/02/2026 Date of Pronouncement 06/02/2026 आदेश/ORDER PER BENCH:-
These appeals are filed by the respective Assessee Trusts as against separate exparte orders all dated 30.10.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying final registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Since single common issue is involved in these appeals, the same are disposed of by this common order for the sake of convenience.
Undisputedly all these Assessee Trusts are granted provisional registration, applied for final registration by filing Form 10AB and also granted two opportunities of hearing by Ld. CIT(E) as tabulated below:
Valid up to Form 10AB Hearing Exparte Registration for final given on order by granted on registration CIT(E) filed on 2657/Ahd/2025 23/10/2023 31/03/2026 29/04/2025 10/07/2025 30/10/2025 28/08/2025 2604/Ahd/2025 14/10/2021 31/03/2026 03/05/2025 16/07/2025 30/10/2025 03/09/2025 2628/Ahd/2025 02/10/2021 31/03/2026 17/11/2025 26/06/2025 30/10/2025 27/08/2025 2634/Ahd/2025 28/05/2022 31/03/2026 28/04/2025 26/06/2025 30/10/2025 27/08/2025 2645/Ahd/2025 02/10/2021 31/03/2026 03/05/2025 16/07/2025 30/10/2025 03/09/2025 2652/Ahd/2025 09/10/2023 31/03/2026 10/03/2025 22/07/2025 30/10/2025 19/09/2025
When all these appeals are listed for hearing on 04-02-2026, none appeared on behalf of the Assessee Trusts. Hence the matter was passed over and called at the end of the hearing, again none appeared on behalf of the assessee Trusts, even by virtual mode.
3.1. Ld. CIT-DR Shri R.P. Rastogi informed that C.A. Shri Pankaj J. Patel seek for adjournment of the above appeals. There is neither request for adjournment nor appearance by any Authorized Representative. Therefore the above cases are adjourned to today i.e. 05-02-2026. There is a request letter for adjournment from Shri Pankaj J. Patel by email. On perusal of records, we do not find specific Letter of Authority in favour of Shri Pankaj J. Patel by any of the Assessee Trusts, therefore the request for adjournment is hereby rejected.
However this being exparte orders Ld. CIT-DR requested that the same may be set-aside to the file of Ld. CIT(E) to give one more opportunity of hearing to the assessee Trusts by imposing necessary cost.
We have perused the materials available on record and found that the orders passed by the Ld. CIT(E) are all exparte orders after giving two opportunities of hearing to the assessee Trusts (as detailed in the table at Para 2 above). Further provisional registration was already granted to each Assessee Trusts and they approached the Ld. CIT(E) for final registration of the Trust. However exparte orders were passed for non-appearance. Therefore in the interest of Principle of Natural Justice, we deem it fit to set- aside the exparte orders passed by Ld. CIT(E) by imposing a cost of Rs.5,000/- payable by each assessee Trust to the Income Tax Department within two weeks of receipt of copy of this order. On production of cost payment challan, we direct Ld. CIT(E) to grant one more opportunity of hearing to each of the assessee Trust and pass order in accordance with the provisions of law.
In the result, the appeals filed by the Assessee Trusts are treated as allowed for statistical purposes.
Order pronounced in the open court on 06-02-2026