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Judgment
PER AMITABH SHUKLA, AM
This appeal filed by the Assessee is directed against the order of Ld. Commissioner of Income Tax (Exemption), Chandigarh, dated 23.02.2026 passed under section 12A of the Act. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
At the outset, ld. Counsel for the assessee submitted that its rights on natural justice have been violated in as much as the impugned order u/s 12A dated 23.02.2026 has been passed without giving adequate opportunity of being heard. It was contended that the rejection was done on the premise that assessee had failed to provide crucial documents in support of its contention. The ld. Counsel submitted that the same is now available. The ld. Counsel assured that full cooperation would be made to the Revenue authorities and that the matter be remitted back to the CIT(E) for re-adjudication.
The ld. DR though relying upon the order of lower authorities did not seriously oppose to the proposed move.
Heard rival parties in the light of material available on record.
On the issue of the rejection order being based upon insufficient opportunity, we have noted following conclusions drawn by ld. CIT(E) in her impugned order:-
“5.In view of the foregoing facts and circumstances, including failure to furnish documentary evidence establishing genuineness of donations, failure to properly account for disposal of trust asset, failure to furnish rent agreement and supporting evidences regarding advance of Rs. 22,00,000/-, and failure to demonstrate genuine charitable activities, the undersigned is not satisfied about the genuineness of activities of the applicant trust within the meaning of section 12AB of the Income-tax Act, 1961. Accordingly, the present application of the applicant filed in Form 10AB u/s 12A(1)(ac)(ii) of the Act is rejected and registration is cancelled for the above discussed reasons. This rejection would also supersede any registration granted u/s 12AB of the Act by any authority at any earlier time…”
Thus, the fact of ex-parte order of CIT(E) is evident from the conclusion drawn by ld. CIT(E) to reject assessee’s application on the premise of non-submission of required documents extracted hereinabove. We are conscious that no litigant gains by non-prosecution of its case. In the interest of justice, we remit the matter back to the file of Ld. CIT(E) for re-adjudication de novo, in accordance with law and by passing a speaking order. The assessee shall be at liberty to file all or any documents deemed necessary for grant of registration and shall be bounden to comply with all the statutory notices and any non-compliance would be adversely viewed. Accordingly, the appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.