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Facts
The assessee, Shri Shantinath Foundation, a Public Charitable Trust with temporary registration under section 12A(1)(ac)(i), applied for final registration in Form 10AB. The CIT (Exemption) denied the application through an ex-parte order dated 30.09.2025, after rejecting the trust's adjournment request on 29.09.2025, citing the expiration of the limitation period for passing the order. The assessee appealed, arguing a lack of proper opportunity due to non-communication of notices by their consultant.
Held
The Tribunal noted that the assessee had submitted partial details on 29.09.2025, which the CIT(E) did not consider before passing the ex-parte order due to time constraints. Applying the principles of Natural Justice, the Tribunal set aside the matter and remanded it to the CIT(E) for a fresh opportunity of hearing. The assessee is directed to cooperate and provide all necessary details.
Key Issues
1. Denial of final registration under Section 12AB without an effective opportunity of being heard. 2. Violation of principles of natural justice by rejecting the adjournment request due to time limits.
Sections Cited
Section 12AB, Section 12A(1)(ac)(i), Section 12A(1)(ac)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
Assessee Represented: Shri Dhruv Parikh, CA Revenue Represented: Shri Alpesh Parmer, CIT-DR Date of hearing : 29-01-2026 Date of pronouncement : 03 -02-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Assessee as against exparte order dated 30.09.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Brief facts of the case is that the assessee is a Public Charitable Trust temporarily registered u/s. 12A(1)(ac)(i) of the Act and its registration valid from Asst. Year 2022-23 to A.Y. 2026-27 for final 2 Shri Shantinath Foundation Vs. CIT(E) registration. Assessee Trust filed in Form 10AB. Learned CIT(E) given two opportunities of hearing on 04-04-2025 and 27-05-2025. But assessee trust sought for adjournment on 15 days on 29-09- 2025. Since the limitation to pass order on the final registration expiring on 30-09-2025, Ld. CIT(E) denied the adjournment request and rejected the application filed by the assessee.
Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal:
1. That the Ld. CIT (Exemptions) erred in law and on facts in rejecting the application for renewal of registration under section 12A(1)(ac) (ii) of the Income Tax Act, 1961 vide order dated 30.09.2025, without affording effective and sufficient opportunity of being heard thereby violating principles of natural justice.
2. That the Ld. CIT (Exemptions) failed to appreciate that the delay in responding to the notices dated 04.04.2025 and 27.05.2025 was neither wilful nor deliberate, but due to genuine bonafide circumstances, as the said notices were not communicated to the appellant trust by its consultant.
3. That the Ld. CIT (Exemptions) erred in not considering the part-submission made on 29.09.2025 seeking a reasonable adjournment and clarification of facts and part submission dated 30.09.2025 along with most of the data/information sought for in the notice dated 04.04.2025, which indicates the bona fide intention of the appellant to comply with the proceedings.
That the order passed by the Ld. CIT (Exemptions) rejecting the renewal application is bad in law, arbitrary, and deserves to be quashed in the interest of justice, equity, and fair play.
5. That the appellant craves leave to add, alter, amend, or withdraw any of the above grounds of appeal
at the time of hearing.
4. Ld. Counsel for the assessee submitted that the representative who has handling the matters not informed the trustees the hearing notices issued by Ld. CIT(E). However, the assessee 3 Shri Shantinath Foundation Vs. CIT(E) uploaded all the available information on 29-09-2025 and sought further time which was not considered by Ld. CIT(E) and denied final registration. The assessee also placed on record, the interim reply filed by the assessee on 29-09-2025 and requested one more opportunity be given to the assessee for regular registration of the assessee Trust.
Ld. D.R. appearing for the Revenue supported the order passed by the Ld. CIT(E).
We have given our thoughtful consideration and perused the materials available on record. Though the assessee submitted partial details before Ld. CIT(E) on 29-09-2025 and the same was not considered by Ld. CIT(E) and passed the exparte order on 30— 09-2025 as it is getting time barred. Therefore in the Principle of Natural Justice, we deem it fit to set-aside the matter back to the file of Ld. CIT(E) to give one more opportunity of hearing by issuing physical hearing notice to the assessee Trust to explain its case and pass order in accordance with the provisions of law. Needless to say the assessee should cooperate by filing all necessary details before Ld. CIT(E).
In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose.