ITAT Grants Second Chance; Trust's 12AB & 80G Registration Denial Set Aside for Fresh Hearing [Read Order]
The ITAT observed that the CIT(E) had passed ex-parte orders without fully considering the trust’s case.
![ITAT Grants Second Chance; Trusts 12AB & 80G Registration Denial Set Aside for Fresh Hearing [Read Order]](https://images.taxscan.in/h-upload/2025/08/19/2078330-itat-second-chance-trusts-12ab-80g-taxscan.webp "ITAT Grants Second Chance; Trusts 12AB & 80G Registration Denial Set Aside for Fresh Hearing [Read Order]")
The Income Tax Appellate Tribunal (ITAT) Ahmedabad bench has given a trust, another opportunity to secure tax-exempt registrations under Sections 12AB and 80G(5) of the Income Tax Act. The tribunal set aside earlier rejection orders by the Commissioner of Income Tax (Exemption) and directed a fresh hearing, citing the trust’s undertaking to submit pending documents.Stellin Foundation had...
The Income Tax Appellate Tribunal (ITAT) Ahmedabad bench has given a trust, another opportunity to secure tax-exempt registrations under Sections 12AB and 80G(5) of the Income Tax Act. The tribunal set aside earlier rejection orders by the Commissioner of Income Tax (Exemption) and directed a fresh hearing, citing the trust’s undertaking to submit pending documents.
Stellin Foundation had filed appeals against two separate orders dated September 2024, where the CIT(E) denied its registration applications without granting a proper hearing. The trust explained that a 19-day delay in filing appeals occurred because its accountant failed to check emails regularly, causing it to learn about the rejections only in November 2024. It then appointed a lawyer to challenge the orders.
During proceedings, the Revenue did not strongly oppose condoning the delay. The tribunal, comprising Vice President Dr. BRR Kumar and Judicial Member T.R. Senthil Kumar, accepted the explanation, noting the delay was unintentional. However, it emphasized that this would be the trust’s final opportunity to present all required documents, including activity proofs and compliance details, to justify its eligibility for registrations.
The ITAT observed that the CIT(E) had passed ex-parte orders without fully considering the trust’s case. It directed the commissioner to rehear the matter and decide afresh after reviewing the submissions. The tribunal clarified that its ruling was procedural and did not comment on the merits of the trust’s eligibility.
The decision highlights the importance of natural justice in tax proceedings, ensuring entities get a fair chance to present their case. For the Stellin Foundation, the order revives its hope of securing tax-exempt status, critical for donor benefits and operational flexibility. The CIT(E) must now reevaluate the applications based on the trust’s forthcoming submissions.
Dr. BRR Kumar and T.R. Senthil Kumar pronounced the order, allowing the appeals for statistical purposes. The trust must now act swiftly to comply with documentation requirements during the fresh hearing to avoid another rejection.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
