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Facts
M/s. The Sajjan Jain Support Trust (Assessee) applied for permanent registration under Section 12AB, holding provisional registration under Section 12A(1)(ac)(iv). The CIT(E) rejected the application ex-parte as notices were sent to an outdated email ID of a former employee, leading to non-compliance, despite the Assessee updating its email on the income tax portal. This was the second such rejection, with a previous appeal having also been remitted.
Held
The Tribunal acknowledged that while the Assessee updated its email on the IT portal, it failed to specifically inform the CIT(E). However, considering the prior remand and to ensure justice, the Tribunal decided to provide a final opportunity, remanding the case to the CIT(E) for fresh adjudication, subject to the Assessee depositing Rs. 11,000/- and filing all required documents.
Key Issues
Whether the CIT(E) was justified in rejecting the application for permanent registration ex-parte due to non-compliance when notices were sent to an outdated email, and if the case warrants a remand for fresh consideration.
Sections Cited
12A, 80G, 250, 12AB, 12A(1)(ac)(iv)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & MS. RENU JAUHRI
Respondent CIT (Exemptions), M/s. The Sajjan Jain 601, 6th Floor, 6328/Mum/2025 Support Trust, Cumballa Hill 499/2, A Arkade House, MTNL TE Building, Ashok Nagar, Pedder Road, Near Children Academy, Dr. Gopalrao Deshmukh Kandivali (East), 6329/Mum/2025 Marg, Mumbai – 400 010 Cumballa Hill, PAN: AADTT2208C Mumbai – 400 026 Present for: Assessee by : Ms. Komal Dhedia Revenue by : Mr. R.A. Dhyani CIT-DR Date of Hearing : 02.12.2025 Date of Pronouncement :02.12.2025 O R D E R Per Bench: These two appeals have been preferred by the Assessee against the order, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short „the Act‟).
These appeals under consideration are having involved the identical issue/registration pertains to Section 12A and 80G of the Act and therefore for the sake of brevity, the same were heard together and being disposed of by this common order, considering as a lead case, which pertains to registration u/s. 12AB of the Act and the result of the same should be applicable mutatis mutandis, to both the appeals under consideration. we observe that in the instant case, the Assessee claimed that on the basis of provisional registration dt. 24.05.2022 granted u/s. 12A(1)(ac)(iv) of the Act, it had & 6329/M/2025 M/s. The Sajjan Jain Support Trust initially filed an application for permanent registration vide Form-10AB on dt. 31.03.2023 u/s. 12AB of the Act, which was scrutinized and considered by the then Ld. CIT(E) by issuing the notices dt. 14.08.2023 and 26.08.2023 to the e-mail ID pratik@ark.ade.in, which belonged to Mr. Pratik Mahesh Shah, who was the account staff of the assessee-trust and left the job of the assessee-trust on 31.07.2022, which resulted into non-checking the e-mail ID pratik@ark.ade.in and non-compliance and, therefore, the then Ld.CIT(E) rejected the said application vide order dt. 02.09.2023 and thus, the assessee preferred appeal before the Hon‟ble Tribunal, who vide order dt. 07.04.2025 remitted the case to the file of the Ld.CIT(E) for fresh adjudication.
The Assessee somehow once again filed an application for permanent registration on dt. 31.03.2025 u/s. 12AB of the Act, in which notices dt. 16.08.2025, 13.09.2025 and 19.09.2025 were issued to the assessee at the e-mail ID : pratik@ark.ade.in.
5. Though, the Assessee updated its e-mail address i.e., taxation@arkade.in on the income tax portal and was in impression that it would receive further notices on the updated e-mail ID. However, the Assessee came to know from the income tax portal that notice has been issued on 16.08.2025. Thus, the Assessee submitted its response vide letter dt. 20.08.2025 along with relevant documents, as acknowledged vide acknowledgment No.715162431200825 being e-proceedings response acknowledgment.
6. However, as the Assessee failed to check the notices dt. 13.09.2025 and 19.09.2025, as the same were issued to the e-mail ID pratik@ark.ade.in, but not on the e-mail ID i.e., taxation@arkade.in as updated by the assessee on the income tax portal, therefore, the said notices remained to be complied with, which resulted into passing the impugned order as ex-parte and the Ld. Commissioner therefore, vide impugned order dt. 27.09.2025, rejected the application filed by the Assessee, mainly on the following grounds:
“That information like proof of expenses on the objects of trust along with copy of bank statement were called-for vide notice dt. 13.09.2025. However, no response was received in this regard. Further, a final opportunity was provided vide notice dt. 19.09.2025, however, the Assessee has remained non-compliant to the terms of the above mentioned notices. Further, the earlier application dt. 31.03.2023 for regularization of provisional registration was rejected on 02.09.2023 on the grounds of non-compliance by the Assessee, during the appellate proceedings and the Tribunal vide order dt. 07.04.2025 by condoning the delay, set aside the proceedings for fresh consideration, but despite of clear and repeated directions issued by the Hon’ble ITAT and this office, the assessee has failed to submit the requisite documents that are essential for verifying the genuineness and bonafide nature of the trust’s activities. The assessee has accepted the negligent and non co- operative attitude towards the regularization of provisional registration granted u/s. 12A of the Act”.
We have given thoughtful consideration to the peculiar facts and circumstances of the case. The Assessee has claimed that though the Assessee-trust has updated its e-mail ID i.e., taxation@arkade.in in the income tax portal, however, still the Ld. Commissioner issued the notices to the earlier e-mail ID of the erstwhile account staff of the Assessee- trust, which resulted into non-compliance. We observe that there was a clear cut fault of the Assessee, as appears from the aforesaid facts and circumstances that the Assessee though updated its e-mail address on the income tax portal, however, it is a fact that the assessee has not updated and/or provided the updated e-mail ID to the Ld. Commissioner and, therefore, the Ld. Commissioner was constrained to issue notices to the e- mail address, as available on record and thus, the assessee is not entitled for any leniency.
However, it is a fact that in the absence of material facts and documents and submissions, the issue involved also remained to be adjudicated in its right perspective and proper manner and the Tribunal vide order dt. 07.04.2025 has also remitted to the file of the Ld.CIT(E) for fresh adjudication, which appears to be clubbed with the subsequent application filed by the assessee on 31.03.2025. Thus, considering the peculiar facts and circumstances again in totality for just and proper & 6329/M/2025 M/s. The Sajjan Jain Support Trust decision of the case and substantial justice, this court is inclined to provide last and final opportunity to the assessee to substantiate its claim before the Ld. Commissioner, and therefore remanding the case to the file of the Ld. Commissioner.
The Assessee on being asked specifically, has given complete details of the latest e-mail address, phone number and address of communication before this court and, therefore, we deem it appropriate to mention the same in this order, for the convenience of the Ld. Commissioner for issuing the notice(s) to the Assessee.
Particulars Address of communication for future notices and correspondence Email Id taxation@arkade.in Contact No. 9594393739 2nd Floor, Arkade House, AS Marg, Address for communication Ashok Nagar, Kandivali East, Kandivali East S.O. Mumbai-400101, Maharashtra.
Thus, being an exceptional case and to provide a last and final opportunity to the Assessee, the case is remanded to the file of the Ld. Commissioner for decision afresh, however subject to deposit of Rs. 11,000/- in the Revenue Department under “Other Heads” within thirty days of receipt of this order. Suffice to say, the Ld. Commissioner shall afford a reasonable opportunity of being heard to the Assessee.
The assessee is specifically directed to file all the relevant submissions and documents without any default, as would be essentially required for proper and just decision of the case by the Ld. Commissioner. We clarify that in case of subsequent default, the assessee shall not be entitled for any leniency. is allowed for statistical purposes.
Order pronounced in the open court on 02.12.2025.