Ramkrushna Sharda Sevashram Vs CIT(Exemption) (ITAT Rajkot)
The appeal before the ITAT, Rajkot arose from the rejection of an application for regular registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Ahmedabad. The assessee trust, incorporated on 11.01.2019, was engaged in educational, medical, and charitable activities. It had earlier obtained provisional registration under section 12A for different assessment periods. Due to a bona fide mistake, the trust filed a second provisional registration application and later applied for regular registration in June 2024. However, because the trustees failed to notice email communications regarding proceedings, no response was filed, leading to rejection of the application and cancellation of provisional registration on 13.11.2024.
Subsequently, the trust filed a fresh application for registration on 21.03.2025, which was rejected on 08.08.2025 as non-maintainable, citing earlier rejection and cancellation. Aggrieved, the assessee approached the Tribunal, contending that no proper opportunity of being heard had been granted. The Revenue relied on the order of the CIT(E).
After hearing both sides and examining the record, the Tribunal observed that the assessee had not been afforded due opportunity to explain its case or submit supporting documents. Accepting the assessee’s request, the Tribunal remitted the matter back to the CIT(E) with directions to provide proper opportunity and decide the registration application in accordance with law. The appeal was allowed for statistical purposes.
