SWITCHTECH INCUBATOR FOUNDATION,KHORDA vs. DEPUTY COMMISSIONER OF INCOME TAX, BHUBANESWAR

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ITA 676/CTK/2025Status: DisposedITAT Cuttack09 February 2026AY 2026-27Bench: ITAT. The Ld. counsel submitted that merely for non-submission of financial statement should not be taken base for rejecting of the Form 10AB filed by the assessee for registration of the trust u/s 12AB. He requested and undertook that if one more chance be given to the assessee to produce documents as desired by the Ld. CIT(E). the assessee will comply for the documents.4. On the other hand, the Ld. DR relied on the order of lower authorities.5. Considering the rival submissions and perusi3 pages

AI SummaryRemanded

Facts

The assessee applied for registration under Section 12AB of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected the application for failure to submit financial statements for the last three years and to prove the application of income towards the trust's objects.

Held

The Tribunal noted that the rejection was solely based on the non-submission of financial statements. Considering the assessee's undertaking to furnish the required documents, the Tribunal remitted the issue back to the Commissioner for fresh consideration.

Key Issues

Whether the rejection of registration under Section 12AB solely for non-submission of financial statements is justified, and if the assessee should be given another opportunity to produce documents.

Sections Cited

12AB, 12A(1)(ac)(ii), 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “CUTTACK BENCH, CUTTACK

Hearing: 02.02.2026Pronounced: 09.02.2026

O R D E R

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Exemption), Hyd [hereafter “the Ld. CIT(E)] dated 20.11.2025, DIN & Notice No. ITBA/EXM/F/EXM45/2025- 26/1082828059(1) for not granting registration u/s 12AB of the Act.

Briefly stated the facts of the case are that the assessee has filed an application in Form No. 10AB under Rule 11AA of the IT Rules, 1962 seeking approval u/s 12A(1)(ac)(ii) of the Act. In compliance to the Switchtech Incubator Foundation provision of section 12AB of the Act, detailed questionnaire were sent vide notice dated 07.08.2025 to the applicants with a request to furnish information documents as mentioned therein. The assessee furnished partially information to the compliance of the notice and the assessee was asked to file financial statement for last three years. However, the assessee did not file the financial statements for the said period and for 31.03.2025, even after the lapse of extended due date for filing audit report u/s 10B/10BB and further opportunities was granted to the assessee vide SCN dated 11.11.2025. However, the assessee did not file desired financial statements/documents, therefore, the genuineness of the activities and application of income of the trust could not be verified. Accordingly, he rejected the application filed by the assessee.

Aggrieved from the above order, the assessee filed appeal before ITAT.

The Ld. counsel submitted that merely for non-submission of financial statement should not be taken base for rejecting of the Form 10AB filed by the assessee for registration of the trust u/s 12AB. He requested and undertook that if one more chance be given to the assessee to produce documents as desired by the Ld. CIT(E). the assessee will comply for the documents.