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.
