DIVYANG FOUNDATION,MUMBAI vs. CIT EXEMPTIONS, MUMBAI

The Ld. CIT (Exemptions) erred in rejecting the Application in Form 10AB u/s 80G seeking renewal of approval under section 80G of the Income Tax Act on the ground of non-compliance to all the terms of notices issued to the Applicant seeking renewal of registration u/s 12A(1)(ac)(ii) of the I T Act.

The Ld. CIT (Exemptions) erred in rejecting the Application in Form 10AB u/s 80G seeking renewal of approval under section 80G of the Income Tax Act merely on the ground of rejection of 12A registration and without affording adequate opportunity of hearing.

The Order of the CIT (Exemptions) is against the weight of equity, good conscience and natural justice. All of the above grounds are without prejudice to each other. The Appellant craves leave to add, alter, modify, delete or amend any grounds of appeal on or before the final hearing.

Briefly stated, the assessee filed Form No. 10AB on 29.09.2025 seeking renewal of approval under section 80G(5) of the Act. The assessee had also filed a separate application on the same date seeking renewal of registration under section 12AB of the Act. The learned CIT(E), having rejected the application for registration under section 12AB vide order dated 01.03.2026, held that the assessee did not fulfil the condition prescribed under section 80G(5)(i) of the Act. Consequently, the application seeking renewal of approval under section 80G was also rejected.

During the course of hearing, the learned Authorised Representative (AR) submitted that the assessee’s appeal in ITA No. 4610/Mum/2026, challenging the rejection of registration under section 12AB of the Act, was heard by the Co-ordinate Bench on 30.06.2026. It was submitted that the Bench had indicated that the matter would be restored to the file of the learned CIT(E) for fresh adjudication. The learned AR contended that the rejection of the application under section 80G was entirely consequential to the rejection of the application under section 12AB. He, therefore, prayed that the present matter may also be restored to the file of the learned CIT(E).

The learned Departmental Representative raised no objection to the aforesaid prayer of the assessee.

We have considered the rival submissions and perused the material available on record. It is evident from the annexure to the impugned order that the application filed by the assessee for renewal of approval under section 80G was rejected solely on account of the rejection of its application for registration under section 12AB of the Act. No independent finding regarding non- fulfilment of any other condition prescribed under section 80G has been recorded in the impugned order.

We further find that the assessee’s appeal in ITA No. 4610/Mum/2026, concerning registration under section 12AB of the Act, which was heard on 30.06.2026, has since been disposed of by the Co-ordinate Bench vide order dated 14.08.2026. By the said order, the issue of registration under section 12AB has been restored to the file of the learned CIT(E) for fresh adjudication.

Since the rejection of the assessee’s application under section 80G was consequential to the rejection of its application under section 12AB, and the latter matter now stands restored to the file of the learned CIT(E), the very foundation of the impugned order requires reconsideration. In order to maintain consistency and to avoid conflicting adjudications, the application seeking approval under section 80G also requires to be restored to the file of the learned CIT(E).

Accordingly, we set aside the impugned order dated 01.03.2026 and restore the application for renewal of approval DIVYANG FOUNDATION under section 80G to the file of the learned CIT(E). The learned CIT(E) is directed to decide the application afresh, in accordance with law, after adjudicating the assessee’s application for registration under section 12AB pursuant to the directions of the Co-ordinate Bench in ITA No. 4610/Mum/2026. While deciding the application, the learned CIT(E) shall independently examine the assessee’s compliance with the conditions prescribed under section 80G and afford a reasonable opportunity of hearing to the assessee. The assessee is also directed to furnish the requisite details and supporting documents and to cooperate in the proceedings. We have not expressed any opinion on the merits of the application.

Accordingly, Ground Nos. 1 to 3 are allowed for statistical purposes. Ground No. 4, being general in nature, does not require separate adjudication.

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

""थ" / The Respondent. 3. संबंिधत आयकर आयु" / The CIT(A) 4. आयकर आयु"(अपील) / Concerned CIT DIVYANG FOUNDATION 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, मु"बई / DR, ITAT, Mumbai 6. गाड" फाईल / Guard file.