SHRI SHANTINATH FOUNDATION,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2296/AHD/2025

AI Insights

The case involves Shri Shantinath Foundation, a Public Charitable Trust, which appealed against the ex parte order of the Commissioner of Income Tax (Exemption), Ahmedabad, dated 30.09.2025. The order denied the Trust's application for registration under section 12AB of the Income Tax Act, 1961, due to the Trust's failure to respond adequately to previous notices. The Trust argued that the delays were not willful but due to genuine circumstances, including non-communication of the notices by their consultant. The Tribunal found merit in the Trust's arguments and decided to set aside the CIT's order, providing the Trust another opportunity to comply with the registration requirements.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833497 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 27-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Shri Shantinath Foundation T/32, Shantinagar Society, Usmanpura, Ahmedabad Gujarat-380013 PAN: AACTS3713N (Appellant) Vs The CIT (Exemption), Ahmedabad (Respondent) Assessee Represented: Shri Dhruv Parikh, CA Revenue Represented: Shri Alpesh Parmer, CIT-DR Date of hearing : 29-01-2026 Date of pronouncement : 03 -02-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Assessee as against exparte order dated 30.09.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Brief facts of the case is that the assessee is a Public Charitable Trust temporarily registered u/s. 12A(1)(ac)(i) of the Act and its registration valid from Asst. Year 2022-23 to A.Y. 2026-27 for final ITA No: 2296/Ahd/2025 Printed from counselvise.com I.T.A No. 2296/Ahd/2025 Shri Shantinath Foundation Vs. CIT(E) 2 registration. Assessee Trust filed in Form 10AB. Learned CIT(E) given two opportunities of hearing on 04-04-2025 and 27-05-2025. But assessee trust sought for adjournment on 15 days on 29-09- 2025. Since the limitation to pass order on the final registration expiring on 30-09-2025, Ld. CIT(E) denied the adjournment request and rejected the application filed by the assessee. 3. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. That the Ld. CIT (Exemptions) erred in law and on facts in rejecting the application for renewal of registration under section 12A(1)(ac) (ii) of the Income Tax Act, 1961 vide order dated 30.09.2025, without affording effective and sufficient opportunity of being heard thereby violating principles of natural justice. 2. That the Ld. CIT (Exemptions) failed to appreciate that the delay in responding to the notices dated 04.04.2025 and 27.05.2025 was neither wilful nor deliberate, but due to genuine bonafide circumstances, as the said notices were not communicated to the appellant trust by its consultant. 3. That the Ld. CIT (Exemptions) erred in not considering the part-submission made on 29.09.2025 seeking a reasonable adjournment and clarification of facts and part submission dated 30.09.2025 along with most of the data/information sought for in the notice dated 04.04.2025, which indicates the bona fide intention of the appellant to comply with the proceedings. 4. That the order passed by the Ld. CIT (Exemptions) rejecting the renewal application is bad in law, arbitrary, and deserves to be quashed in the interest of justice, equity, and fair play. 5. That the appellant craves leave to add, alter, amend, or withdraw any of the above grounds of appeal at the time of hearing. 4. Ld. Counsel for the assessee submitted that the representative who has handling the matters not informed the trustees the hearing notices issued by Ld. CIT(E). However, the assessee Printed from counselvise.com I.T.A No. 2296/Ahd/2025 Shri Shantinath Foundation Vs. CIT(E) 3 uploaded all the available information on 29-09-2025 and sought further time which was not considered by Ld. CIT(E) and denied final registration. The assessee also placed on record, the interim reply filed by the assessee on 29-09-2025 and requested one more opportunity be given to the assessee for regular registration of the assessee Trust. 5. Ld. D.R. appearing for the Revenue supported the order passed by the Ld. CIT(E). 6. We have given our thoughtful consideration and perused the materials available on record. Though the assessee submitted partial details before Ld. CIT(E) on 29-09-2025 and the same was not considered by Ld. CIT(E) and passed the exparte order on 30— 09-2025 as it is getting time barred. Therefore in the Principle of Natural Justice, we deem it fit to set-aside the matter back to the file of Ld. CIT(E) to give one more opportunity of hearing by issuing physical hearing notice to the assessee Trust to explain its case and pass order in accordance with the provisions of law. Needless to say the assessee should cooperate by filing all necessary details before Ld. CIT(E). 7. In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose. Order pronounced in the open court on 03-02-2026 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 03/02/2026 Printed from counselvise.com I.T.A No. 2296/Ahd/2025 Shri Shantinath Foundation Vs. CIT(E) 4 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद Printed from counselvise.com "