ARCHANA FOUNDATION,MUMBAI vs. CIT EXEMPTIONS, MUMBAI

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ITA 6320/MUM/2026Status: DisposedITAT Mumbai18 September 2026AY 2026-274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(E)'s order was based on incorrect facts as the Section 12AB registration was actually granted. Therefore, the impugned order could not be sustained.

What were the facts?

The assessee applied for renewal of registration under Section 80G. The CIT(E) rejected the application based on the erroneous premise that the assessee's application for registration under Section 12AB was rejected.

What were the issues?

Whether the rejection of an application for registration under Section 80G is valid when it is based on a mistaken belief about the status of the assessee's registration under Section 12AB.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Amit Agrawal, CA
For Respondent: Shri Manoj Kumar (CIT-DR)
Pronounced: 18.09.2026

INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: A BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA 6320/MUM/2026 (AssessmentYear:2026-27) ARCHANA FOUNDATION CIT EXEMPTIONS MORE HOUSE, 28 NEW INDIA HSG 601, 6TH FLOOR, CUMBALL SOCIETY, 11 NS ROAD, JVPD HILL MTNL TE BUILDING, SCHEME, MUMBAI, MUMBAI- Vs. PEDDER ROAD, CUMBALLA 400049, MAHARASHTRA HILL,MUMBAI-400026, MAHARASHTRA Appellant Respondent

Permanent Account Number of Assessee: AABTA0873E

Appellant represented by: Shri Amit Agrawal, CA Respondent represented by: Shri Manoj Kumar (CIT-DR) Date of conclusion of hearing: 15.09.2026 Date of pronouncement: 18.09.2026 ORDER PER SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER:

This appeal by the assessee is directed against order dated 30.03.2026 passed by the learned Commissioner of Income-tax (Exemption)-Mumbai, wherein the application of the assessee seeking for renewal of registration u/s 80G of the Income-tax Act, 1961 (in short ‘the Act’) came to be rejected.

2.

The Assessee has raised the following grounds of appeal:

“1. Under the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (exemptions) was not justified in rejecting on 30- 3/2026, the application filed for renewal of registration u/s 80G of the Income Tax Act 1961

2.

Under the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (exemptions) was not justified in rejecting the application on the ground that "12AB renewal has been rejected vide order dated 30-3-2026 3. Under the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (exemptions) failed to appreciate that the appellants registration under section 12AB of income tax act had not been rejected but was already been renewed vide order dated 30.03.2026 and is valid upto AY 2031-32 4. Under the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (exemptions) the impugned order has been passed on incorrect facts without proper verification of the records and is therefore bad in law and liable to be quashed. 5. The appellant craves leave to amend OR modify any ground of appeal OR to add a new ground of appeal till the final disposal of the appeal.”

3.

Briefly stated facts of the case are that assessee is a registered public charitable trust under section 12AB of the Act for upliftment of Adivasi people. It also runs old-age home Maato Shri Vriddhashram at Khada Pali and Balwandi in Adivasi village Shahapur. The assessee filed Form No. 10AB on 11th August, 2025 and requested for renewal of the registration under section 80G of the Act under clause (ii) of first proviso to sub-section (5) of section 80G of the Act, but said renewal was rejected by the learned Commissioner of Income-tax (Exemption) on the premise that application of the assessee for registration under section 12AB was rejected vide order dated 30th March, 2026. The relevant finding of the learned CIT(E) is reproduced as under:

“2. It is observed that the applicant had also applied for registration u/s 12AB of the Act vide form 10AB filed on 18.09.2025, under sub-clause (iii) of clause (ac) of sub-section (1) of Section 12A of the Act. This application has been rejected vide Order dated 30.03.2026. 3. The provision of Section 80G(5)(i) of the Act stipulates the condition that the provision of this section is only available for institution or fund for which section 11, 12 or clause 23AA or clause 23C of Section 10 of the Act applies. The applicant fails to fulfil any of the above criteria in view of the rejection of its application for registration u/s 12AB of the Act. Thus, its application for approval u/s 80G of the act becomes untenable.” 4. Before us, the learned counsel for the assessee produced a copy of the order dated 30.03.2026 passed under section 12AB of the Act. A perusal thereof shows that, contrary to the basis recorded in the impugned order, the assessee’s application under section 12AB was allowed and registration was granted for a period of five years, valid up to Assessment Year 2031-32. It is, thus, evident that the impugned order proceeds on a factual premise contrary to the very order passed under section 12AB on the same date. The rejection of the application under section 80G is consequently founded on an erroneous factual basis. In these circumstances, the impugned order cannot be sustained.

5.

We, accordingly, set aside the impugned order and restore the matter to the file of the learned CIT(E) for fresh consideration of the assessee’s application for renewal of approval under section 80G, in accordance with law, after taking into consideration the order dated 30.03.2026 granting registration under section 12AB. Needless to say, the assessee shall be afforded reasonable opportunity of being heard.

6.

In the result, appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 18/09/2026.

Sd/- Sd/-

SIDDHARTHA NAUTIYAL OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 18/09/2026. K.Kr.ps Copy to: ARCHANA FOUNDATION, MORE HOUSE, 28 NEW INDIA HSG SOCIETY, 11 NS ROAD, JVPD SCHEME, 1 MUMBAI, MUMBAI-400049, MAHARASHTRA CIT EXEMPTIONS, 601, 6TH FLOOR, CUMBALL HILL MTNL TE 2 BUILDING, PEDDER ROAD, CUMBALLA HILL, MUMBAI-400026, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAIBENCH 5 GUARD FILE

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