Case Law Details
Madan Mohan Prabhu Vs CIT (Exemption) (ITAT Rajkot)
The assessee filed two appeals against separate orders dated 09.03.2026 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting its applications for registration under Sections 12AB and 80G(5) of the Income Tax Act.
The assessee had applied in Form No. 10AB seeking registration under Sections 12AB and 80G(5)(iii). The Commissioner issued a single notice dated 19.02.2026 seeking details of activities and supporting documents in relation to the Section 12AB application. As no response was received, the Commissioner passed an ex parte order rejecting registration under Section 12AB and cancelling the provisional registration already granted. The application under Section 80G(5) was also rejected on the sole ground that registration under Section 12AB had been denied, without granting any opportunity of hearing.
Before the Tribunal, the assessee submitted that all details had been furnished along with Form No. 10AB and expressed readiness to provide any further documents and evidence required to satisfy the conditions under Sections 12AB and 80G(5)(iii). The Departmental Representative supported the orders but did not object to the matter being remanded for another opportunity.
The Tribunal observed that the rejection under Section 12AB was primarily based on the absence of supporting documentary evidence and that only one opportunity of hearing had been granted. Considering these facts, it held that the assessee should be given one more opportunity to produce the necessary documents and evidence. Without expressing any opinion on the merits, the Tribunal set aside the impugned orders and restored the matter to the Commissioner of Income Tax (Exemption) for fresh adjudication. The Commissioner was directed to provide adequate opportunity of hearing and pass a speaking order in accordance with law. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
These two appeals are filed by the same Assessee as against separate orders both dated 09.03.2026 passed by Commissioner of Income Tax (Exemption), Ahmedabad (in short “Ld. CIT(E)”) denying registration under Section 12AB and 80G(5) of the Income Tax (hereinafter referred to as “the Act”).
2. The brief facts of the case are that the assessee filed applications in Form No. 10AB seeking registration under section 12AB and 80G(5)(iii) of the Act. Ld. CIT(E) given single opportunity of hearing on 19.02.2026 and the application filed for registration under section 12AB of the Act calling for the details of the activities and documents. However, the Assessee has not responded to the same which has resulted in passing an ex-parte order rejecting registration under section12AB of the Act as well as cancelling the provisional registration already granted by passing impugned order dated 09.03.2026. As far as application filed under section 80G(5) no opportunity was given to the Assessee Trust and the application for registration under section80G(5) was also rejected on the sole ground 12AB registration also denied to the Assessee Trust.
3. Aggrieved against the same Assessee Trust are in appeal before us raising the following Grounds of Appeal in ITA No. 542/Rjt/2026:
“1. The grounds of appeal mentioned hereunder are without prejudice to one another.
2. That the learned Commissioner of Income Tax Exemptions, Ahmedabad has erred in law and on facts in refusing to grant registration U/S 12AB of the Income Tax Act, 1961.
3. Your Honours appellant craves leave to add, to amend, alter, OR withdraw any OR more grounds of appeal on OR before the hearing of appeal.”
4. The Grounds of appeal raised by the assessee in ITA No.543/Rjt/2026 reads as under: –
“1. The grounds of appeal mentioned hereunder are without prejudice to one another.
2. That the learned Commissioner of Income Tax Exemptions, Ahmedabad has erred in law and on facts in refusing to grant registration U/S 80G of the Income Tax Act, 1961.
3. Your Honours appellant craves leave to add, to amend, alter, OR withdraw any OR more grounds of appeal on OR before the hearing of appeal.”
5. Shri Darshak Thakkar, the Ld. AR of the assessee submitted that the assessee had furnished all details along with the application in Form No. 10AB before the Ld. CIT(E). He submitted that the assessee is in a position to furnish all other requisite details and documentary evidences to substantiate its claim and satisfy the conditions prescribed under sections 12AB and 80G(5)(iii) of the Act. He, therefore, prayed that the impugned order be set aside and the matter be restored to the file of the Ld. CIT(E) for fresh adjudication.
6. Per contra, Shri Sanjay Punglia, the Ld. CIT-DR, supported the orders passed by Ld. CIT(E). He, however, had no objection if the matter was set aside the file of the Ld. CIT(E) for allowing another opportunity to the Assessee Trust.
7. We have carefully considered the facts of the case and the material available on record. It is observed that the application of the assessee-trust for registration under section 12AB of the Act came to be rejected by the Ld. CIT(E) on the ground that the assessee failed to furnish supporting documentary evidences to establish fulfillment of the conditions prescribed under the said provision. Before us, the Ld. AR submitted that the assessee is ready and willing to furnish all the relevant details and evidences required for verification of its claim. Considering the facts and circumstances of the case and keeping in view that the rejection has been made primarily for want of supporting documentary evidence and only one opportunity of hearing given to the Assessee Trust. We are of the considered view that one more opportunity deserves to be granted to the Assessee Trust to place all relevant material before the Ld. CIT(E). Therefore, in the interest of substantial justice and without expressing any opinion on the merits of the claim of the assessee, we deem it appropriate to set aside the impugned orders and restore the matter to the file of the Ld. CIT(E) for fresh adjudication. The assessee shall furnish all the documents, explanations and evidences as may be called for by the Ld. CIT(E) and shall fully cooperate in the registration proceedings. The Ld. CIT(E) shall afford adequate opportunity of being heard to the assessee and thereafter pass a speaking order in accordance with law. Accordingly, the impugned orders are set aside and the matter is restored to the file of the Ld. CIT(E) for de novo consideration. The ground raised by the assessee is allowed for statistical purposes.
8. In the result, the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the Court on 12.06.2026 at Ahmedabad.
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