MANUBHAI A PATEL CHARITABLE TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

आयकर अपीलीय अधिकरण, म ुंबई पीठें, म ुंबई INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: C BEFORE SMT. BEENA PILLAI, HON’BLE JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, HON’BLE ACCOUNTANT MEMBER ITA 4761/MUM/2026 (निर्धारण वर्ा/Assessment Year: NA) MANUBHAI A PATEL COMMISSIONER OF CHARITABLE TRUST INCOME TAX (EXEMPTIONS) 27-A SURYA KIRAN, 2ND FLOOR, PAN GALLY GOYALIYA ROOM NO. 601, 6TH FLOOR, TANK, MUMBAI, MUMBAI- CUMBALLA HILL, MTNL TE 400036, MAHARASHTRA Vs. BUILDING, PEDDAR ROAD, DR GOPALRAO DESHMUKH MARG, MUMBAI MUMBAI-400026, MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

Permanent Account Number of AAATM0827F Assessee:

अपीलधर्थी द्वारा/Appellant represented by: Ms. Pranaya, AR प्रत्यर्थी द्वारा/Respondent represented by: Shri. Mukesh Jain, CIT.DR सुनवाई की तारीख / Date of conclusion of hearing: 10-Jul-2026 घोषणा की तारीख / Date of pronouncement: 21-09-2026 आदेश / ORDER PER SMT. BEENA PILLAI, JUDICIAL MEMBER: Present appeal is filed by the assessee against the order dated 12/02/2026 passed by the Ld. Commissioner of Income Tax (Exemptions), Mumbai [“Ld. CIT(E)”] in Form No.10AD, whereby the application filed by the assessee in Form No.10AB seeking renewal of approval u/s.80G(5)(ii) of the Income-tax Act, 1961 (“the Act”) was rejected.

“1) That on the facts and in the circumstances of the case of the appellant and in law, the Ld. CIT(E) has rejected the application for approval u/s. 80G(5)(ii) filed in Form 10AB, and passed the rejection order in Form 10AD on 12.02.2026, solely on the ground of non-availability of the regular registration certificate u/s. 12A of the Act which is valid for the period beyond 31.03.2026. 2) That on the facts and in the circumstances of the case and in law, the Ld. CIT(E) has erred in treating the application as non-maintainable by incorrectly holding that the appellant has not filed the application in form 10AB for renewal of registration u/s. 12A, without examining the factual position and without proper enquiry. 3) That on the facts and in the circumstances of the case and in law, the Ld. CIT(E) has failed to appreciate that the due date for filing Form No. 10AB for renewal of registration was 31.03.2026 and the appellant has duly filed the same within the prescribed time limit on 16.03.2026, and therefore the rejection of the application u/s. 80G(5)(ii) is premature and not justified. 4) That on the facts and in circumstances of the case of the appellant and in law, the Ld. CIT(E) has failed to appreciate that the trust in question was constituted in 1986 and has been in functioning as a public charitable trust for the benefit of the general public for several decades. 5) That on the facts and in circumstances of the case of the appellant and in law, the impugned order is contrary to the principles of natural justice as the Ld. CIT(E) has erred in holding that the appellant failed to furnish documents, whereas all required documents, detailed submission were duly submitted on 12.01.2026, and the said submissions were ignored. 6) That on the facts and in the circumstances of the case of the appellant and in law, the Ld. CIT(E) has failed to consider that the appellant was already granted provisional registration u/s. 12A as well as approval u/s. 80G(5) in Form 10AC for A.Y. 2022-23 to A.Y. 2026-27 and ought to have verified the documents rather than rejecting the application in a mechanical manner. 7) The appellant therefore humbly prays that the impugned order passed in Form 10AD u/s. 80G(5)(ii) of the Act on 12.02.2026 be set aside and the matter be restored before the Ld. CIT(E) for fresh adjudication after granting the appellant a reasonable opportunity of being heard.

8) That the impugned order being contrary to law, evidence and facts of the case may kindly be set aside, amended and modified in the light of the grounds of appeal enumerated above and the appellant be granted such relief as is called for on the facts and in the circumstances of the case of the appellant and in law. 9) That each of the grounds of appeal enumerated above is without prejudice to and independent of one another. 10) That the appellant craves leave to reserve to the trust the right to add, to alter or amend any of the grounds of appeal before or at the end of the hearing and to produce such further evidence, documents and papers as may be necessary” 3. Brief facts of the case are as under:-

Assessee is a charitable trust and filed an application in Form No.10AB on 27/09/2025 seeking renewal of approval u/s.80G(5)(ii) of the Act. On verification of the application, the Ld.CIT(E) observed that certain documents were not furnished and accordingly issued notice dated 05/01/2026. The impugned order itself records that, in response to the said notice, the assessee furnished relevant details and documents on 12/01/2026. The Ld.CIT(E) further noticed that the assessee had been granted registration in Form No.10AC u/s.12A on 24/09/2021, stated to be valid up to 31/03/2026. The application seeking renewal of approval u/s.80G was, however, rejected on the ground that the assessee had not, as on the date of passing of the impugned order, filed Form No.10AB for renewal of its registration u/s.12A beyond 31/03/2026. The Ld. CIT(E) therefore held that grant of approval u/s.80G for a period extending beyond the subsisting registration u/s.12A would not satisfy the requirement of s.80G(5)(i), and consequently treated the application as non-maintainable.

3.1. Before us, the Ld.AR submitted that the rejection of the application was premature. It was submitted that, on the date of passing of the impugned order on 12/02/2026, the existing registration u/s.12A was admittedly subsisting. It is further the specific case of the assessee that the due date for filing the application for renewal thereof was 31/03/2026 and that Form No.10AB seeking such renewal was in fact filed on 16/03/2026, i.e., before expiry of the prescribed period. The Ld. AR therefore submitted that the application seeking renewal of approval u/s.80G ought not to have been rejected merely because the renewal application u/s.12A had not been filed as on 12/02/2026. It was further submitted that no adverse finding has been recorded by the Ld. CIT(E) regarding the charitable objects or genuineness of activities of the assessee. The Ld. DR relied upon the impugned order.

We have perused the submissions advanced by both sides in light of the record placed before us.

4.1. We further note that, according to the specific ground raised before us, the assessee had time up to 31/03/2026 to file the renewal application and claims to have filed Form No.10AB for renewal of registration u/s.12A on 16/03/2026. Evidently, such subsequent filing could not have been examined by the Ld. CIT(E), as the impugned order had already been passed on 12/02/2026. In our considered opinion, the eligibility of the assessee for renewal of approval u/s.80G ought to be examined having regard to the complete and updated position concerning its registration u/s.12A/12AB rather than the application being finally rejected merely on the basis of the position obtaining on 12/02/2026, particularly when the existing registration was admittedly subsisting on that date.

4.2. At the same time, the assertion of the assessee that the application for renewal of registration u/s.12A/12AB was filed on 16/03/2026 and the present status and outcome of such application require verification by the Ld.CIT(E). We therefore consider it appropriate, in the interest of justice, to set aside the impugned order and restore the application to the file of the Ld.CIT(E) for fresh adjudication. The Ld.CIT(E) shall verify the application stated to have been filed by the assessee on 16/03/2026 for renewal of registration u/s.12A/12AB, ascertain its present status and thereafter decide the application seeking renewal of approval u/s.80G(5)(ii) in accordance with law. Needless to say, the assessee shall be afforded reasonable opportunity of being heard and shall be at liberty to furnish all relevant documents in support of its claim.

In the result, the appeal filed by the assessee stands allowed for statistical purposes.

Order pronounced in the open court on 21-09-2026.

Sd/- Sd/- GIRISH AGRAWAL BEENA PILLAI ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: 21-09-2026 Shamik Sr. P.S.

Copy to: MANUBHAI A PATEL CHARITABLE TRUST, 27-A SURYA KIRAN, 2ND FLOOR, PAN 1 GALLY GOYALIYA TANK, MUMBAI, MUMBAI-400036, MAHARASHTRA COMMISSIONER OF INCOME TAX (EXEMPTIONS) , ROOM NO. 601, 6TH FLOOR, 2 CUMBALLA HILL, MTNL TE BUILDING, PEDDAR ROAD, DR GOPALRAO DESHMUKH MARG, MUMBAI, MUMBAI-400026, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE TRUE COPY

ASSISTANT REGISTRAR / SR. PRIVATE SECRETARY I.T.A.T., MUMBAI