SHARDABEN EDUCATION TRUST,GANDHINAGAR V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2661/AHD/2025

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The case involves Shardaben Education Trust, which appealed against the orders of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for renewal of registration under section 12A(1)(ac)(ii) of the Income-tax Act, 1961. The CIT(Exemptions) had rejected the application due to non-response from the trust to notices requesting details and documents to verify the genuineness of the trust's activities. The Tribunal found that the rejection was primarily based on the non-furnishing of details and allowed the appeal, restoring the matter to the CIT(Exemptions) for a fresh examination with the additional evidence provided by the trust.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837828 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 30-12-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: PARIMALSINH B. PARMAR
• Keywords: Opportunity of being heard; Additional evidence; Principle of natural justice; Charitable institution
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. Nos.2660&2661/Ahd/2025 (Assessment Year: N.A.) Shardaben Education Trust, Opp. Kailash Dham, Pethapur- Mahudi Road, At Post Pethapur, Gandhinagar-382610 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No.AAGTS5243R] (Appellant) .. (Respondent) Appellant by : Shri Parimalsinh B. Parmar, AR Respondent by: Shri Rignesh Das, CIT-D.R. Date of Hearing 05.02.2026 Date of Pronouncement 19.02.2026 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: These appeals have been filed by the Assessee against the orders passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide orders dated 30.10.2025. We shall first discuss the assessee’s appeal against rejection of the assessee’s application for grant of registration under section 12A(1)(ac)(ii) of the Act in ITA Number 2660/Ahd/2025. 2. The Assessee has taken the following grounds of appeal:- “1. The Ld. CIT(E) has erred, both in law and on facts of the case, in passing annex-parte order rejecting the application for registration of the trust moved under sub-clause (ii) of the clause (ac) of sub-section (1) of section 12A of the Act. 2. The Ld. CIT(E) has erred, both in law and on facts, in passing the order without affording reasonable opportunity of being heard. Printed from counselvise.com ITA Nos. 2660&2661/Ahd/2025 Shardaben Education Trust vs. CIT(E) Asst. Year –NA - 2– 3. The Appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.” 3. The brief facts of the case are that the assessee, a charitable trust, filed an application for renewal of registration under section 12A(1)(ac)(ii) of the Income-tax Act, 1961 (“the Act”) in Form No. 10AB. The application was processed by the Commissioner of Income-tax (Exemptions) in terms of section 12AB(1)(b) of the Act read with Rule 17A of the Income-tax Rules, 1962. During the course of proceedings, the CIT(Exemptions) issued notices calling upon the assessee to furnish details and documents as prescribed under Rule 17A(2), in order to satisfy himself about the genuineness of the activities of the trust, their conformity with the stated objects and compliance with other laws material for achieving those objects. According to the CIT(Exemptions), although the notices were duly served, the assessee neither filed any submissions or documents nor sought adjournment. In the absence of the required details, the CIT(Exemptions) recorded that he was unable to satisfy himself regarding the genuineness of the activities of the trust and their alignment with the charitable objects. On this reasoning, the application for renewal of registration filed in Form No. 10AB was rejected by Ld. CIT (Exemption). 4. The assessee is in appeal before us against the order passed by CIT(Exemptions) rejecting the application of the assessee. 5. Before us, the learned Counsel for the assessee challenged the impugned order on the ground that it was passed ex-parte and in violation of the principles of natural justice. It was submitted that the CIT(Exemptions) erred in law and on facts in rejecting the application without affording a Printed from counselvise.com ITA Nos. 2660&2661/Ahd/2025 Shardaben Education Trust vs. CIT(E) Asst. Year –NA - 3– reasonable opportunity of being heard. It was contended that the assessee trust has charitable objects and carries on genuine activities, and the rejection of registration was not based on any adverse finding on merits but solely on account of non-response to notices by the assessee trust. 6. The learned Counsel further filed an application for admission of additional evidence before us. In the said application, it was submitted that the assessee had inadvertently failed to respond to the notices issued by the CIT(Exemptions) due to oversight, which resulted in the passing of the ex- parte order. It was submitted that the assessee has all the necessary details and documentary evidences which were called for by the CIT(Exemptions), and a complete draft reply along with supporting annexures has now been prepared. The additional evidence sought to be placed on record includes copies of Form Nos. 10AC and 10AB, notices issued by the CIT(Exemptions), draft replies to such notices and relevant annexures. According to the learned Counsel for the assessee, these documents go to the root of the matter, are vital for adjudication of the controversy and deserve to be admitted in the interest of justice. It was therefore prayed that the additional evidence be admitted and the matter be restored to the file of the CIT(Exemptions) for fresh consideration. 7. We have heard the rival submissions and carefully perused the material available on record, including the application for admission of additional evidence. 8. It is evident that the application for renewal of registration has been rejected by the CIT(Exemptions) primarily on the ground of non-furnishing Printed from counselvise.com ITA Nos. 2660&2661/Ahd/2025 Shardaben Education Trust vs. CIT(E) Asst. Year –NA - 4– of details. In the present case, the assessee has filed an application for additional evidence explaining the circumstances under which the notices issued by the CIT(Exemptions) could not be responded to and has produced material which is directly relevant for deciding the issue of renewal of registration. In our considered view, these evidences are necessary for a just and proper adjudication of the matter and deserve to be considered by the Ld. CIT (Exemption). 9. Accordingly, in the interest of justice, we restore the matter to the file of Ld. CIT(Exemptions) for de-novo consideration of the assessee’s application for renewal of registration under section 12A(1)(ac)(ii) of the Act. The CIT(Exemptions) shall consider the additional evidence and other material placed on record, afford a reasonable opportunity of being heard to the assessee and thereafter pass a fresh order in accordance with law. 10. Needless to say, we have not expressed any opinion on the merits of the claim for registration and all issues are left open for fresh adjudication. 11. The appeal of the assessee is allowed for statistical purposes. Now we shall come to the assessee’s appeal in ITA No. 2661/Ahd/2025 12. In ITA No. 2661/Ahd/2025, the assessee has challenged the order rejecting the assessee’s application for grant of registration u/s 80G of the Act. The facts and issues are similar to ITA No. 2660/Ahd/2025 in so far the application filed by the assessee was rejected primarily on account of non- compliance on part of the assessee. Printed from counselvise.com ITA Nos. 2660&2661/Ahd/2025 Shardaben Education Trust vs. CIT(E) Asst. Year –NA - 5– 13. Accordingly, the matter is hereby restored to the file of CIT(Exemptions) for de-novo consideration after affording due opportunity of hearing to the assessee. 14. The appeal of the assessee is allowed for statistical purposes. 15. In the combined result, both the appeals of the assessee are allowed for statistical purposes. This Order is pronounced in the Open Court on 19/02/2026 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 19/02/2026 TANMAY, Sr. PS TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 16.02.2026 (Dictated over dragon software) 2. Date on which the typed draft is placed before the Dictating Member 16.02.2026 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 16.02.2026 5. Date on which the fair order is placed before the Dictating Member for pronouncement 19.02.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S 19.02.2026 7. Date on which the file goes to the Bench Clerk 19.02.2026 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "