DIGVIJAY LIONS FOUNDATION,ASARWA V. CIT(EXEMPTION), VEJALPUR

ITA 169/AHD/2026

AI Insights

The case involves Digvijay Lions Foundation appealing against the decision of the Commissioner of Income Tax (Exemption), who rejected their application for renewal of registration under section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) had requested additional documents to verify the genuineness of the Trust's activities, which the assessee failed to provide within the stipulated time. The Tribunal found that while the CIT(E) had the authority to request documents, the rejection of the application without considering the documents submitted shortly before the deadline was not justified. The Tribunal's decision allows the assessee another chance to comply with the documentation requirements.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841623 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 24-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: SHREEKANT SHAH
• Keywords: Set aside; Period of limitation; Principle of natural justice; Time period of passing order
• Section: 12AA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No. 169/AHD/2026 Assessment Years: NA Digvijay Lions Foundation, Opposite Civil Hospital, Asarwa, Ahmedabad, Gujarat – 380016 [PAN – AAATD2202K] Vs. The Commissioner of Income Tax (Exemption), Ahmedabad – 380015 (Appellant) (Respondent) Assessee by Shri Shreekant Shah, AR Revenue by Shri Alpesh Parmar, CIT-DR Date of Hearing 23.02.2026 Date of Pronouncement 25.02.2026 O R D E R PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER: This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption) [in short “CIT(E)”], dated 31.12.2025 in the proceeding u/s 12A(1)(ac)(ii) of the Income Tax Act. 2. The brief facts of the case are that the assessee had filed an application in Form No. 10AB on 26.06.2025 for renewal of registration u/s. 12A(1)(ac)(ii) of the Act. The Ld. CIT(E) had required the assessee to furnish certain details/documents vide notices dated 07.10.2025 and 17.10.2025, which was not complied. In the absence of required documents the Ld. CIT(E) was not satisfied about the genuineness of the Printed from counselvise.com ITA No. 169/Ahd/2026 Digvijay Lions Foundation Vs. CIT(E) 2 activities of the Trust and, therefore, the application for renewal of registration was rejected vide the impugned order. 3. Now the assessee is in appeal before us. The following grounds have been taken in this appeal. 1 The CIT (Exemption) erred in rejecting Form 10AB despite complete compliance with Rule 17A(2) 2. The order was passed in violation of natural justice, ignoring the extension request dated 24.12. 2025 and replies filed on 01.01.2026 and 02.01.2026 3. The CIT wrongly held that only FY 2023-24 accounts were submitted, ignoring audited accounts for FY 2021-22 to 2024-25 4. The CIT failed to appreciate detailed notes, photographs, donor lists, and expenditure ledgers evidencing genuine charitable activities 5. The rejection was based on mechanical reliance on CBDT Circular 01/2024, without specific adverse findings against the appellant 6. The order is contrary to binding precedents of the Supreme Court and Gujarat High Court, which mandate fair consideration of evidence and prohibit rejection on suspicion or technicalities. 7. The rejection order is arbitrary, passed in undue haste, and liable to be set aside. 4. Shri Shreekant Shah, the Ld. AR of the assessee submitted that the assessee had made a request vide letter dated 24.12.2025 for allowing further time to submit the required documents. Further that a reply was also filed by the assessee on 02.01.2026, which was not considered by the Ld. CIT(E). The Ld. AR submitted that the rejection order of the Ld. CIT(E) was arbitrary, passed in undue haste and liable to be set aside. Printed from counselvise.com ITA No. 169/Ahd/2026 Digvijay Lions Foundation Vs. CIT(E) 3 5. Per contra, Shri Alpesh Parmar, the Ld. CIT-DR, supported the order of Ld. CIT(E). 6. We have considered the submissions of the assessee. The assessee had filed application u/s. 12A(1)(ac)(ii) of the Act, on 26.06.2025 for renewal of registration. As per provision of section 12AA of the Act, the CIT(E) is empowered to call for such documents or information as he thought necessary to satisfy himself about the genuineness of activities of the trust and to ensure compliance of requirements of any other law. The CIT(E) is also empowered to make such enquiries as he deemed necessary in this regard. Accordingly, the Ld. CIT(E) had called for certain details and documents from the assessee vide notices dated 07.10.2025 and 17.12.2025. There was no compliance to the notices and details and documents as required were not furnished. The assessee vide letter dated 24.12.2025 had requested for 10 days’ time to furnish the required documents. As per provision of section 12AA(2) of the Act, the CIT(E) was required to pass the order granting or refusing registration within a period of six months from the end of the month in which the application was received. Since the application was filed by the assessee on 26.06.2025, the CIT(E) had time till 31.12.2025 to pass the final order in this regard. The assessee was aware of this fact, still time of 10 days was sought on 24.12.2005, which was beyond the limitation period. No details and documents were filed by the assessee within the time limit as available to the CIT(E) to pass the order. In fact, the Ld. CIT(E) had waited till the last date, still no documents were provided by the assessee. Therefore, the order of the Ld. CIT(E) rejecting the application of the assessee, cannot be faulted. Printed from counselvise.com ITA No. 169/Ahd/2026 Digvijay Lions Foundation Vs. CIT(E) 4 7. The assessee had filed certain documents vide letter dated 02.01.2026, which could not be considered by the Ld. CIT(E). The assessee has not given any reasonable explanation for non-furnishing those documents before the limitation date for passing the order. The documents were in the possession of the assessee itself and no third party information was called for. We, therefore, deem it proper to impose a cost of Rs.10,000/- on the assessee which should be deposited to the Prime Minister National Relief Fund within a period of 15 days from the date of receipt of this order. Subject to the payment of cost, the Ld. CIT(E) is directed to allow one more opportunity to the assessee to file the details and documents as required. The assessee is free to resubmit the documents filed on 02.01.2026 or any other details/documents as deemed necessary. Thereafter, the Ld. CIT(E) should consider the application of the assessee for renewal of registration u/s. 12A(1)(ac)(ii) of the Act, as per law. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the Court on 25/02/2026 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 25th February, 2026 Neelesh True Copy आदेश आदेश आदेश आदेश क\u0002 क\u0002 क\u0002 क\u0002 \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप अ ेिषत अ ेिषत अ ेिषत अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b यथ\u0007 / The Respondent. Printed from counselvise.com ITA No. 169/Ahd/2026 Digvijay Lions Foundation Vs. CIT(E) 5 3. संबंिधत आयकर आयु / Concerned CIT 4. आयकर आयु (अपील) / The CIT(A) 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड\u0014 फाईल /Guard file. आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/BY ORDER, उप उप उप उप/सहायक सहायक सहायक सहायक पंजीकार पंजीकार पंजीकार पंजीकार (Dy./Asstt.Registrar) आयकर आयकर आयकर आयकर अपीलीय अपीलीय अपीलीय अपीलीय अिधकरण अिधकरण अिधकरण अिधकरण, अहमदाबाद अहमदाबाद अहमदाबाद अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "