PRANA FOUNDATION,THANE vs. ITO, EXEM. WARD 2(2), MUMBAI, MUMBAI

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ITA 6899/MUM/2026Status: DisposedITAT Mumbai11 September 20263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that in the interest of justice, the assessee should be given an opportunity to present its case. The impugned orders were set aside, and the matters were restored to the file of the CIT(E) for fresh adjudication.

What were the facts?

The assessee trust's applications for registration under Section 12A and approval under Section 80G were rejected by the CIT(E) for non-representation. The assessee claimed that only one notice was issued, which was missed by the trustees.

What were the issues?

Whether the CIT(E) provided adequate opportunity to the assessee before rejecting its applications for registration and approval. Whether the matter should be remanded for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: S HRI SANJAY GARG & SHRI JAGADISH

Pronounced: 11.09.2026

आयकर अपीऱीय अधिकरण, म ुंबई पीठें, म ुंबई INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: C BEFORE S HRI SANJAY GARG, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER ITA Nos.6898 & 6899/MUM/2026 निर्धारणवर्ा/Assessment Year: 2026-27)

The ITO (Exemptions), Prana Foundation, Thane. Ward-2(2), Mumbai. Vs. अपीलधर्थीAppellant प्रत्यथी Respondent

Permanent Account Number of AAGTP 0856 R Assessee:

अपीलधर्थीद्वारा/Appellant represented by: Shri Aditya, CA (virtual) प्रत्यथीद्वारा/Respondent represented by: Shri Ajay Soneji, Sr.DR सुनवाईकीतारीख/Date of conclusion of hearing: 10.09.2026 घोषणाकीतारीख/Date of pronouncement: 11.09.2026 आदेश / ORDER Per Sanjay Garg, Judicial Member:

The captioned appeals filed by the assessee are against the order of the Learned Commissioner of Income Tax (Exemptions), Mumbai [hereinafter referred to as “Ld.CIT(E)”] dated 30.01.2026 for the Assessment Year 2026-27.

ITA Nos.6898 & 6899/Mum/2026 Prana Foundation :: 2 :: 2. ITA No.6899/Mum/2026 is against the rejection of the application of the assessee trust for registration u/s.12A of the Income Tax Act, 1961 (in short, “the Act”) whereas ITA No.6898/Mum/2026 is against the rejection of application for approval u/s.80G(5) of the Act.

3.

At the outset, the Ld. Counsel for the assessee has submitted that the Ld.CIT(E) has not given proper opportunity to the assessee to present its case. That only one notice was issued by the Ld.CIT(E) on the e-mail of the assessee trust, which escaped the attention of the trustees. Thereafter, the Ld.CIT(E) dismissed both the applications of the assessee for non-representation/want of prosecution. The Ld. Counsel for the assessee has submitted that the assessee has involved in charitable activities. That the assessee trust has a fair case on merits. He has further submitted that in the interest of justice, the assessee trust may be given an opportunity to present its case before the Ld.CIT(E).

4.

Considering the submissions of the Ld. Counsel for the assessee, in our view, in the interest of justice will be well served, if the assessee be given an opportunity to present its case before the Ld.CIT(E). In view of the above discussion, impugned orders of the Ld.CIT(E) in both the appeals are set aside and matter in both the appeals are restored to the file of the Ld.CIT(E) for fresh adjudication in accordance with law. Needless to say, the Ld.CIT(E) will give

ITA Nos.6898 & 6899/Mum/2026 Prana Foundation :: 3 :: proper opportunity to the assessee to present its case and thereafter will decide the application of the assessee by way of speaking order.

5.

With the above observations, both the appeals of the assessee trust are treated as allowed for statistical purposes.

Order pronounced in the open court on 11.09.2026

Sd/- Sd/- (JAGADISH) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: 11.09.2026 Copy to: 1 Prana Foundation, B-705, Dedhia Elita G.B. Road, Near Vedanth Hospital, Kasarvadavli Off. Ovala, Thane. 2 The ITO (Exemptions), Ward-2(2), Mumbai. 3 THE PCIT / CIT, Mumbai 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE TRUE COPY

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

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