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Facts
Goyam Gunanuragi Shri Jaybhanu Bhakti Trust, a charitable trust, applied for registration under Section 12AB(1)(ac) but the CIT(E) rejected it ex-parte. This rejection occurred because the trust failed to provide required details despite receiving multiple opportunities and the limitation period for the order was expiring.
Held
The Tribunal allowed the appeal for statistical purposes. It directed the CIT(E) to reconsider the application afresh, granting the assessee trust one more opportunity to furnish all relevant details, contingent on the trust paying a cost of Rs. 5,000 to the Income Tax Department within two weeks.
Key Issues
Whether the ex-parte rejection of a charitable trust's registration application under Section 12AB/12A due to non-compliance with notices was justified, and if the assessee should be granted a further opportunity to submit documentation.
Sections Cited
12AB, 12AB(1)(ac), 12A, 115TD(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
Goyam Gunanuragi Shri CIT (Exemption), Jaybhanu Bhakti Trust Ahmedabad 1, Ishvashyam Society, Vs Manekbag, Ahmedabad-380015, Gujarat PAN: AAETG4427F (Appellant) (Respondent) Assessee Represented: Shri Hardik Mehta, A.R. Revenue Represented: Shri R.P. Rastogi, CIT-DR Date of hearing : 20-01-2026 Date of pronouncement : 22-01-2026 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 charitable Trust created on 21-02-2023 with the main objects to promote social, charitable and cultural activities for the public benefit. The assessee Trust applied for registration u/s. 12AB(1)(ac) of the Act 2 Goyam Gunanuragi Shri Jaybhanu Bhakti Trust Vs. CIT(E) on 29-03-2025. The Ld. CIT(E) given opportunities of hearing on 16-04-2025, 12-09-2025 and 19-09-2025, however the assessee Trust failed to furnish required details. In the meantime limitation to pass order on registration was expiring on 30-09-2025 and in absence of details Ld. CIT(E) passed exparte rejection order.
Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal:
1. The Hon'ble CIT(Exemption) has erred both in law and on facts by rejecting the application of the Appellant filed for the grant of registration u/s 12A of the Income Tax Act, 1961 ('the Act').
2. The Hon'ble CIT(Exemption) has erred in rejecting the application filed for the grant of registration u/s 12A of the Act, as the Appellant was restricted by reasonable cause to submit the relevant details called for.
3. The Hon'ble CIT(Exemption) has erred in cancelling the provisional approval granted u/s 12A of the Act on the ground that the Appellant could not comply with the notices issued for furnishing certain details/documents
4. The Hon'ble CIT(Exemption) has erred in treating the present application for registration as non-maintainable, which is against the principle of natural justice.
5. The Hon'ble CIT(Exemption) has erred in directing the Appellant to pay tax as per the provisions of section 115TD(5) of the Act.
6. Your Appellant reserves the right to add, modify, amend or withdraw any ground(s) of appeal on or before the hearing of the appeal.
Ld. Counsel for the assessee pleaded that one more opportunity be given to the assessee trust to file all relevant details before Ld. CIT(E) for registration u/s. 12AB of the Act.
Per contra Ld. CIT-DR strongly oppose the above submission of the A.R. It is seen that Ld. CIT(E) has given three opportunities to the assessee trust to file required details, however the assessee has 3 Goyam Gunanuragi Shri Jaybhanu Bhakti Trust Vs. CIT(E) not responded to the notices. Therefore we hereby impose a cost of Rs.5,000/- payable by the assessee Trust in favour of Income Tax Department within 2 weeks of receipt of this order and produce copy of the Challan before Ld. CIT(E) to reconsider the application afresh and pass order by giving one more opportunity of hearing to the assessee Trust.
In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose.
Order pronounced in the open court on 22 -01-2026