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Facts
The assessee society's applications for registration under sections 12AB and 80G were rejected by the CIT(E) due to non-submission of required documents. The assessee contended they were unaware of the notices as they were sent to a previous Chartered Accountant.
Held
The Tribunal set aside the rejection orders and remanded the case back to the CIT(E) for fresh adjudication. The assessee was directed to furnish all necessary documents and undertake to provide free education to at least 20 students.
Key Issues
Whether the rejection of applications for registration under sections 12AB and 80G due to non-compliance was justified, and if the matter warranted remand for a fresh opportunity.
Sections Cited
12A, 12AB, 80G
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िनधा�रती की ओर से/Assessee by : Sh. Paras Dawar, CA राज� की ओर से/ Revenue by : Shri Manav Bansal, CIT DR सुनवाई की तारीख/Date of Hearing : 09.03.2026 उदघोषणा की तारीख/Date of Pronouncement : 09.03.2026 आदेश/Order PER LALIET KUMAR, J.M: Captioned appeals by the assessee are directed against the separate orders of the Ld. Commissioner of Income Tax Exemptions, Chandigarh each dated 3.11.2025 with regard of the rejection of applications of the Assessee under section 12A and 80G of the Income Tax Act, 1961 (in short 'the Act') respectively.
2 1876 & 1877/Chd/2025
Brief facts of the case are that the assessee society had filed an application in Form No. 10AB seeking registration under section 12AB of the Income-tax Act, 1961 before the learned Commissioner of Income Tax (Exemptions), Chandigarh. During the course of proceedings, the learned CIT(E) issued notices calling for various details and documentary evidence in order to verify the objects of the society and the genuineness of its activities. However, as noted in the impugned order, the assessee did not furnish the requisite information in response to the notices issued through the e- proceeding portal. In view of the non-compliance and absence of supporting material on record, the learned CIT(E) rejected the application for registration under section 12AB of the Act.
The learned Authorised Representative submitted that the assessee society could not respond to the notices issued by the learned CIT(E) as the communications were sent to the earlier Chartered Accountant who was handling the matter at that time, and therefore, the assessee remained unaware of the notices issued through the portal. It was contended that the assessee had no intention to avoid compliance and that the society was carrying out genuine charitable activities even prior to the independence of the country for the uplift of women and their education.
3 1876 & 1877/Chd/2025 4. The learned AR, therefore, requested that one more opportunity be granted and the matter be kindly remanded back to the file of the learned CIT(E) so that the assessee may place all necessary documents and evidence in support of its application for registration.
The learned Departmental Representative, on the other hand, opposed the request for restoration of the matter and supported the order of the learned CIT(E). It was submitted that sufficient opportunities were already granted by the learned CIT(E), but the assessee failed to furnish any reply or supporting documents. Therefore, according to the learned DR, the learned CIT(E) was justified in rejecting the application due to non-compliance on the part of the assessee.
We have heard the rival submissions and perused the material available on record, including the orders passed by the learned Commissioner of Income Tax (Exemptions), Chandigarh, dated 03.11.2025, rejecting the applications of the assessee society for registration under section 12AB and 80G of the Income-tax Act, 1961. We find that the assessee's applications were rejected primarily on account of the non-submission of certain details and documents called for by the learned CIT(E), which prevented the authority from examining the genuineness of the society's activities.
4 1876 & 1877/Chd/2025
Considering the facts and circumstances of the case and in the interest of substantial justice, we deem it appropriate to set aside the impugned orders and restore the matter to the file of the learned CIT(E) for fresh adjudication of the applications filed by the assessee seeking registration under section 12AB and 80G of the Act. The assessee society is directed to participate in the proceedings and furnish all requisite information, documents and supporting evidence as may be called for by the learned CIT(E) so as to enable verification of its objects and the genuineness of its activities in accordance with law.
It is further directed that the assessee society shall file before the learned CIT(E) separate affidavits and undertakings, in each case, to the effect that, as part of its charitable activities, it shall provide free education to at least twenty (20) students with requisite details like name phone number of parents and class etc. in each of its affiliated schools/colleges or educational institutions during the ensuing academic year. The learned CIT(E) shall consider the applications afresh after affording an adequate opportunity to be heard to the assessee and shall pass a speaking orders in accordance with law.
5 1876 & 1877/Chd/2025 9. Accordingly, the matter is restored to the file of the learned CIT(E) for fresh consideration in the light of the above directions
With the above directions, both the appeals of the Assessee are allowed for statistical purposes. Order Pronounced in the open Court on 09.03.2026. Sd/- Sd/- (MANOJ KUMAR AGGARWAL ) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER rkk आदेश की �ितिलिप अ�ेिषत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��थ�/ The Respondent 3. आयकर आयु�/ CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�ीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File