DIVYANG FOUNDATION,MUMBAI vs. CIT EXEMPTIONS, MUMBAI

Ld. Counsel for the assessee, at the outset, submitted that the Assessee has filed the present Appeal on 21.04.2026 seeking directions of this Hon'ble Tribunal for setting aside order dated 01.03.2026 passed by the Ld. CIT(E) rejecting the Application in Form 10AB u/s 12A(1)(ac)(ii) filed by the Assessee seeking renewal of registration under section 12AB of the Income Tax Act. Ld. Counsel submitted that the Assessee is a Charitable Trust incorporated/registered at Delhi before the Sub Registrar, Delhi on 10.10.2019 bearing registration number 1621. The Assessee has been carrying on charitable activities since inception and has enjoyed registration under Income Tax Act, 1961. The Assessee has regularly applied and granted renewal of registration under section 12AA of the Income Tax Act in the past. The Assessee applied for provisional registration in 2021 and provisional registration was granted from AY 2022-23 to AY 2024-25 after which the Assessee obtained registration under section 12AB from AY 2022-23 to AY 2026-27. Ld. Counsel submitted that since the Assessee's registration was coming to an end, the Assessee filed Form 10AB seeking renewal of Registration under section 12AB, within the prescribed time limit. During the processing of the Application, the Ld. CIT(E) issued only one Notice dated 24.01.2026 calling upon the Assessee to furnish certain documents and details. However, before the Assessee could compile and upload the information called for in the Notice, the Assessee came to know that the impugned Order was passed by the Respondent, without granting any further opportunity. The Assessee states that the non-compliance with the aforementioned Notice was neither deliberate nor intentional. 3. Ld. Counsel further submitted that the person entrusted with collating the records and uploading the documents on behalf of the Assessee suffered the unfortunate demise of his father during the relevant period and was required to immediately leave Mumbai to attend to the last rites and other family obligations. Owing to these unforeseen and exceptional circumstances, the documents sought in the Notice could not be compiled and uploaded within the prescribed time. The Assessee respectfully submits that the commission was purely inadvertent and beyond the Assessee's control. The Assessee states that no further notice, reminder, show cause notice or opportunity for personal hearing was granted prior to passing the impugned Order. The Assessee further states that the Impugned Order did not record any findings that the objects of the Assessee are not charitable or that the activities undertaken are not genuine. The Application has been rejected solely on account of the alleged non- compliance with the solitary notice. Ld. Counsel submitted that since the Ld. CIT(E) had provided only one opportunity to the assessee, the matter may be restored for fresh consideration.

Ld. DR has no serious objection in restoring this appeal to the file of the Ld. CIT(E) for adjudicating afresh.

Considering the rival submissions, perusing the order of the Ld. CIT(E), and taking note of the contentions of the assessee, we are of the view that, in the interest of justice, this appeal has to be restored to the file of the Ld. CIT(E) for adjudicating afresh the application filed by the assessee for registration u/s 12AB of the Act. Accordingly, we restore this appeal to the file of the Ld. CIT(E), who shall dispose of and adjudicate the application filed by the assessee for registration u/s 12AB of the Act after providing adequate opportunity of hearing to the assessee.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 14/08/2026