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Facts
Prerana Foundation, a Trust, applied for registration under section 12A of the Income Tax Act, but the application was rejected by the Commissioner of Income Tax (Exemption) (CIT(E)). The rejection was due to the assessee's failure to submit substantial documentary evidence required under section 12A(1)(ac)(iii) and non-compliance with notices.
Held
The Tribunal observed that the assessee failed to produce the necessary documents before the CIT(E). Considering the request for an opportunity to submit the documents and the CIT(DR)'s argument, the Tribunal decided to remand the matter back to the CIT(E) for fresh consideration of the application, with a direction for the assessee to comply with all notices.
Key Issues
Rejection of application for registration under Section 12A of the Income Tax Act due to non-submission of documents and alleged lack of reasonable opportunity of being heard.
Sections Cited
Section 12A, Section 12A(1)(ac)(iii), Section 12AB(1)(b)(ii)(B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL JUDICIAL MEMBER (Assessment Year: N.A) Prerana Foundation, The Commissioner of Vs. 265 Gaytri Nagar, Income Tax(Exemption), Sector 27, Ahmedabad. Gandhinagar-382028. [PAN :AACTP4404 B] (Appellant) .. (Respondent) Appellant by : Shri Hasmukh V Doshi, AR Respondent by: Shri Rignesh Das, CIT. DR Date of Hearing 02.02.2026 Date of Pronouncement 04.02.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal is filed by the Assessee against the appellate order dated 23.09.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, relating to the Assessment Year N.A.
2. The assessee has raised the following grounds of appeal:
1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax(Exemption) has erred in rejecting application for registration u/s.12A of the Act without considering evidence of registration u/s.12A of the Act without considering evidence of registration u/s.12A(1)(ac)(iii) which was already in the reply submitted by the appellant.
On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has not Asst. Year : N.A - 2– provided reasonable opportunity of being heard as provided under Second Proviso to Section 12AB(1)(b)(ii)(B) of the Act.
3. The Appellant craves to add, alter or delete any grounds either before or course of hearing of the appeal.
The facts of the case are that the assessee is a Trust and filed application in Form No.10AB for registration u/s.12A of the Act. The Ld. CIT(E) rejected the application, since the assessee trust remains un- complied and failed to submit substantial documentary evidences u/s.12A (1)(ac)(iii) of the Act.
Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal.
At the outset, we find that notices were issued from time to time to furnish details/documents as called for. The Ld.CIT(E) rejected the application of the assessee on the ground that the assessee-trust failed to produce substantial documents before the Ld.CIT(E). Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld.CIT(E). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(E). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee. The assessee shall comply with the notices issued by the authorities without seeking any unnecessary adjournments.
Asst. Year : N.A - 3– 6. In the result, the appeal of the assessee is allowed for statistical purposes.
The order is pronounced in the open Court on 04.02.2026.
Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) (True Copy) (True Copy) Ahmedabad; Dated 04.02.2026 MV आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy