Sneha Sinchana Trust Vs CIT (Exemptions) (ITAT Bangalore)
No Hearing, No Speaking Order: 12AB 80G Rejection Set Aside – ITAT Bangalore Remands Matter
The Bangalore Bench of the ITAT, in M/s. Sneha Sinchana Trust vs. CIT(E), Bengaluru (ITA Nos.1510 & 1511/Bang/2025, AY 2025-26, order dated 19-12-2025), set aside the rejection of registration u/s 12AB and approval u/s 80G, holding that the Commissioner of Income-tax (Exemptions) violated principles of natural justice.
The Tribunal noted that the Trust was registered in FY 2022-23 and commenced activities in FY 2024-25. Mere non-filing of return of income at that stage could not be treated as a fatal defect, since return filing would arise only after completion of the relevant assessment year. The ITAT further held that the CIT(E) had passed a cryptic, non-speaking order and, more importantly, failed to grant a mandatory opportunity of being heard as required u/s 12AB(1)(b)(ii)(B) before rejecting the applications.
Accordingly, the ITAT set aside both rejection orders dated 25-06-2025 and remanded the matters to the CIT(E) for de-novo consideration, with a direction to afford reasonable opportunity to the Trust to establish the genuineness of its activities. The appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
