SMART COMMUTE FOUNDATION,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI., MUMBAI

The assessee, Smart Commute Foundation, filed an application in Form 10AB under section 12A(1)(ac)(ii) of the Act on 30.09.2025 seeking renewal of registration under section 12AB of the Act. The learned Commissioner, on verification of the application, observed that the application was not complete and that all the documents required to accompany the application had not been furnished. Accordingly, a notice dated 30.01.2026 was issued to the assessee requiring it to furnish the complete set of documents and details as required under Rule 17A(2). The learned Commissioner recorded that the assessee had not complied with all the terms of the said notice till the date of passing of the order. He further observed that registration under section 12AB is to be granted after being satisfied about the objects of the trust or institution, the genuineness of its activities and compliance with any other law for the time being in force which is material for achieving its objects. Since, according to the learned Commissioner, the necessary compliance had not been made by the assessee, he was unable to arrive at a satisfactory conclusion on these parameters and, accordingly, rejected the application for renewal of registration under section 12AB of the Act.

Aggrieved by the aforesaid order of the learned Commissioner of Income Tax (Exemptions), the assessee has preferred the present appeal before the Tribunal. The learned Authorised Representative (“ld.AR”) appearing for the assessee submitted that the assessee was not aware of the communication stated to have been sent through e-mail and, therefore, could not furnish the requisite details and documents before the learned Commissioner. It was submitted that the assessee is engaged in charitable activities and that it has all the necessary documents and supporting material to establish the genuineness of its activities and to substantiate its claim for registration under section 12AB of the Act. The ld.AR submitted that, in the interest of natural justice, the assessee ought to be granted one more effective opportunity to place all the relevant documents and details before the learned Commissioner. He accordingly submitted that the impugned order may be set aside and the matter may be restored to the file of the learned Commissioner of Income Tax (Exemptions) for fresh adjudication after providing sufficient and effective opportunity to the assessee.

The learned Departmental Representative (“ld.DR”), on the other hand, relied upon the order passed by the learned Commissioner of Income Tax (Exemptions) and submitted that an opportunity had in fact been granted to the assessee. He pointed out that the learned Commissioner had issued notice dated 30.01.2026 calling upon the assessee to furnish the complete set of documents and details required for consideration of the application, but the assessee failed to furnish the requisite submissions and documents. It was, therefore, submitted that the learned Commissioner was justified in rejecting the application for renewal of registration under section 12AB on account of non-compliance with the notice and that the impugned order ought to be sustained.

We have heard the rival submissions and perused the material available on record. The perusal of the order passed by the learned Commissioner of Income Tax (Exemptions) shows that the application filed by the assessee was found to be incomplete and that a notice dated 30.01.2026 was issued requiring the assessee to furnish the requisite documents and details. The learned Commissioner has thereafter proceeded to reject the application on the ground that the assessee had not complied with all the terms of the notice and, consequently, the necessary satisfaction regarding the objects of the trust or institution, the genuineness of its activities and the other relevant requirements could not be arrived at. Thus, the rejection of the application is substantially founded upon the non-furnishing of the requisite information and documents by the assessee.

We have also considered the submission of the ld.AR that the assessee was not aware of the communication sent through e-mail and, 3 therefore, could not effectively respond to the same. The assessee has further submitted that it is engaged in charitable activities and possesses the relevant documents and material necessary to establish the genuineness of its activities. In these circumstances, we are of the considered view that the requirement of natural justice would warrant that sufficient and effective opportunity be granted to the assessee to establish its status as a charitable institution and the genuineness of its activities. Merely because one opportunity was granted and the requisite details were not furnished in response thereto, the claim of the assessee for registration under section 12AB should not, in the facts of the present case, be brought to an end without providing a further effective opportunity, particularly when the assessee has stated before us that it is ready and willing to furnish the relevant documents and details.

In view of the foregoing discussion and in order to render substantial justice, we deem it appropriate to set aside the impugned order passed by the learned Commissioner of Income Tax (Exemptions) and restore the matter to his file for fresh adjudication. The learned Commissioner shall provide sufficient and effective opportunity to the assessee to furnish the documents, explanations and other details in support of its application for renewal of registration under section 12AB of the Act. After considering the material furnished by the assessee and after providing reasonable opportunity of being heard, the learned Commissioner shall decide the application afresh in accordance with law by passing an appropriate and speaking order. We make it clear that we have not expressed any opinion on the merits of the assessee's application and all issues are left open for fresh consideration by the learned Commissioner.

The assessee, on its part, shall fully cooperate with the proceedings before the learned Commissioner of Income Tax (Exemptions) and shall furnish all the documents and details upon which it seeks to rely in support of its claim, as well as such further information and documents as may be called for by the learned Commissioner. The assessee shall avail the opportunity so granted and shall not seek unnecessary adjournments. The learned Commissioner, after considering the material furnished by the assessee and after granting sufficient opportunity, shall pass an order afresh in accordance with law.

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