Accountant Not Informed About Income Tax Notice: ITAT Restores 12AB and 80G Registration Matter with 10k Costs [Read Order]
The Tribunal restored the Trust’s registration matter under Sections 12AB and 80G to the CIT(E) for fresh consideration, imposing a total cost of Rs. 10,000 for non-compliance.
![Accountant Not Informed About Income Tax Notice: ITAT Restores 12AB and 80G Registration Matter with 10k Costs [Read Order]](https://images.taxscan.in/h-upload/2025/07/11/2062678-income-tax-notice-taxscan.webp "Accountant Not Informed About Income Tax Notice: ITAT Restores 12AB and 80G Registration Matter with 10k Costs [Read Order]")
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) restored applications for registration under Sections 12AB and 80G to the Commissioner of Income Tax (Exemptions) [CIT(E)] for de-novo consideration with a cost of Rs. 5,000 for each appeal, totaling Rs. 10,000, to be paid to the Prime Minister’s Relief Fund. Ram Bhakt Mandal Trust (assessee) faced rejection of...
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) restored applications for registration under Sections 12AB and 80G to the Commissioner of Income Tax (Exemptions) [CIT(E)] for de-novo consideration with a cost of Rs. 5,000 for each appeal, totaling Rs. 10,000, to be paid to the Prime Minister’s Relief Fund.
Ram Bhakt Mandal Trust (assessee) faced rejection of its applications for registration under Sections 12AB and 80G by the CIT(E). The rejection was due to the trust’s failure to respond to notices issued by the CIT(E) during the approval proceedings. Aggrieved by the CIT(E)’s order, The trust filed appeals before ITAT.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The counsel for the assessee submitted that the email ID registered on the portal belonged to the trust’s accountant, who did not inform the trust about the notices. Therefore the counsel submitted that the assessee could neither attend hearings nor file timely appeals.
The counsel submitted that the CIT(E) rejected the applications due to the trust’s inability to provide evidence of the genuineness of its activities and compliance with trust objects. The counsel requested restoration of the matters to the CIT(E) for fresh consideration in the interest of Justice.
Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here
The counsel also ensured that if given an opportunity the assessee shall comply with the notices of hearing issued by the CIT(E).
The two-member bench comprising SiddharthaNautiyal (Judicial Member) and Narendra Prasad Sinha (Accountant Member) observed that the trust’s non-compliance was evident but deemed it appropriate to provide another opportunity.
The Bench restored the both appeals to the CIT(E) for fresh adjudication, directing the trust to comply diligently with all notices. It also imposed a cost of Rs. 5,000 per appeal, totaling Rs. 10,000, to be deposited with the Prime Minister’s Relief Fund as a condition for restoration.
The tribunal set aside the rejection order. The appeals filed by the assessee was allowed for statistical purposes
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
