GUJARAT HIRA BOURSE,SURAT V. CIT (EXEMPTION), AHMEDABAD

ITA 89/AHD/2026

AI Insights

The case involves Gujarat Hira Bourse appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which had rejected their application for renewal of registration under section 12A(1)(ac)(ii) of the Income Tax Act, 1961. The rejection was primarily due to the non-submission of required documents and details by the assessee in response to a notice from the CIT(E). The Tribunal considered the circumstances under which the documents were submitted and the principles of natural justice, ultimately deciding to allow the appeal for statistical purposes and directing a re-evaluation of the application after imposing a cost on the assessee.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840090 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 13-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: HIMALI MISTRY
• Keywords: Opportunity of being heard; Period of limitation; Principle of natural justice; Time period of passing order
• Section: 12AA; 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No. 89/AHD/2026 Assessment Years: NA Gujarat Hira Bourse, 4th Floor, Administrative Building, Gems Jewellery Park, Opp. Ichhapore Bus Stand-2, Icchapore B.O. Surat, Gujarat – 394510 [PAN – AACCG0717B] Vs. The Commissioner of Income Tax (Exemption), Ahmedabad – 380015 (Appellant) (Respondent) Assessee by Ms. Himali Mistry, AR Revenue by Shri R P Rastogi, 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), Ahmedabad, [in short “CIT(E)”], dated 23.12.2025 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 for renewal of registration u/s. 12A(1)(ac)(ii) of the Act. The Ld. CIT(E) had required the assessee to file certain details and documents vide notice dated 07.10.2025. The assessee vide letter Printed from counselvise.com ITA No. 89/Ahd/2026 Gujarat Hira Bourse Vs. CIT(E) 2 dated 18.10.2025 had sought adjournment but the details and documents as required by the Ld. CIT(E) was not furnished. In the absence of required documents the Ld. CIT(E) was not satisfied about the genuineness of the 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 learned CIT (E) was not justified in rejecting application u/s. 12A of the Act without hearing the assessee. 2. The learned CIT(E) erred in noting the limitation to 31.12.2025 when the limitation fell on 31.03.2026 when admittedly the application fell under section 12A(1)(ac)(ii). 3. The application deserved one more opportunity on the score of natural justice. 4. The above grounds are without prejudicial to one another. 5. The appellant craves leave to add, alter or vary any of the grounds of appeal. 4. Ms. Himali Mistry, the Ld. AR of the assessee did not press ground No.-2 and hence this ground is dismissed. 5. As regarding rejection of the application, the Ld. AR submitted that the assessee had uploaded the required details and documents on 25.12.2025 which was not considered by the Ld. CIT(E). She, therefore, requested that assessee may be allowed another opportunity of being heard by setting aside the matter to the file of Ld. CIT(E). 6. Per contra, Shri R P Rastogi, the Ld. CIT-DR, supported the order of Ld. CIT(E). Printed from counselvise.com ITA No. 89/Ahd/2026 Gujarat Hira Bourse Vs. CIT(E) 3 7. We have considered the request of the assessee. The application in Form No. 10AB was filed by the assessee on 26.06.2025. 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 notice dated 07.10.2025. There was no compliance to the notice and the assessee vide letter dated 18.10.2025 had only requested for adjournment. However, no details and documents were filed by the assessee till the passing of order by the Ld. CIT(E) on 23.12.2025. 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 Ld. CIT(E) had time till 31.12.2025 to pass the final order in this regard. The assessee was aware of this fact, still no documents were filed in spite of seeking adjournment. The Ld. CIT(E) couldn’t have waited till the last date of limitation period to pass the order. Therefore, the order of the Ld. CIT(E) rejecting the application of the assessee, cannot be faulted. 8. The assessee had filed certain documents vide letter dated 23.12.2025, 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 passing the order. Further, the assessee can’t pre-empt the CIT(E) from making any further enquiry by filing the Printed from counselvise.com ITA No. 89/Ahd/2026 Gujarat Hira Bourse Vs. CIT(E) 4 details just before the limitation period. 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 25.12.2025 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. 9. 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. 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 "