VENKATESA PERUMALSWAMY PADITHARA KOTTALAI ARAKKODAI PORUPATCHI NIRUVANAM,COIMBATORE. vs. ACIT (E), COIMBATORE

Facts of the case: The assessee/applicant filed an application in Form No. 10AB on 24.08.2025 seeking registration u/s. 12AB of the Act. The said application came to be rejected by the ld. CIT(E) on the ground that the assessee had not complied with the notices issued during the course of proceedings and had not furnished certain documents considered necessary for examining the objects of the trust/institution and the genuineness of its activities. The ld. CIT(E), inter alia, observed that the Trust Deed/Memorandum of Association/Instrument creating or establishing the institution, financial statements, note on activities and copy of earlier approval/registration u/s. 12A/12AA, wherever applicable, were required for examining the application. The ld. CIT(E) further observed that, in the absence of the Trust Deed/MOA/Instrument, it was not possible to examine, inter alia, whether the objects of the applicant were charitable in nature, whether the benefits were restricted to any particular caste, creed, religion or community, whether the activities were confined to India, whether the trust was irrevocable and whether its funds and properties were to be utilised for achieving its objects. On the above reasoning, the application filed in Form No. 10AB was rejected.

None appeared for the assessee. As per assessee’s grounds of appeal, the application has been rejected essentially on account of non-furnishing/non-compliance of certain documents/notices and that the merits of the objects of the assessee as well as the genuineness of its activities have not been examined after considering the relevant documents.

The ld. Departmental Representative (DR), though relying upon the order of the CIT(E), seriously opposed restoration of the matter to the file of the CIT(E) for examination in accordance with law, subject to compliance by the assessee with the requirements of the Act and the Rules.

We have considered the submissions of ld.DR and perused the material available on record. The application of the assessee in Form No. 10AB has been rejected primarily on the ground that the assessee did not comply with the notices issued and did not furnish the documents considered necessary for examining its eligibility for registration u/s. 12AB. It is well settled that while considering an application for registration u/s. 12AB, the competent authority is required to examine, inter alia, the objects of the trust/institution and the genuineness of its activities, as contemplated under the relevant provisions of the Act. The documents prescribed under the Income-tax Rules are relevant for enabling the competent authority to undertake such examination. At the same time, the rejection of an application without examining the matter on merits, particularly where the assessee expresses its willingness to furnish the requisite documents and explanations, may result in denial of an effective opportunity to substantiate its claim.

In the present case, from the order of the CIT(E), it appears that the application has been rejected principally because of non- compliance with the notices and non-furnishing of the requisite documents. There is no detailed examination on merits of the objects of the assessee or the genuineness of its activities based

We make it clear that we have not expressed any opinion on the merits of the assessee's claim for registration u/s. 12AB. The ld. CIT(E) shall examine the application independently in accordance with the provisions of the Income-tax Act, 1961 and the Rules made thereunder. The assessee is also directed to extend full cooperation and furnish the requisite documents and explanations within the time allowed by the CIT(E). The assessee shall not seek unnecessary adjournments and shall comply with the notices issued by the CIT(E).

In view of the above discussion, the impugned order passed by the ld. CIT(E) rejecting the assessee's application in Form No. 10AB is set aside and the matter is restored to the file of the ld. CIT(E) for fresh consideration. The ld. CIT(E) shall reconsider the application of the assessee u/s. 12AB afresh, on merits and in accordance with law, after providing reasonable and effective opportunity of being heard to the assessee and after considering the documents and explanations furnished by the assessee. The assessee is directed to furnish all requisite documents and information as may be called for

Accordingly, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on the 08th day of September 2026, in Chennai.