SETTNA MEMORIAL FOUNDATION,MUMBAI vs. CIT(EXEMPTION), MUMBAI

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ITA 4949/MUM/2026Status: DisposedITAT Mumbai12 August 2026AY 2027-284 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found the assessee's explanation for non-compliance to be bona fide and plausible. Therefore, the impugned order was set aside, and the matter was restored to the CIT for fresh adjudication.

What were the facts?

The assessee's appeal was dismissed ex parte by the CIT(Exemption) due to non-compliance with notices. The assessee, a chartered accountant, explained that they were unaware of the notice as no message was received on their registered mobile number.

What were the issues?

Whether the CIT(Exemption) was justified in dismissing the appeal ex parte without proper intimation to the assessee. Whether the assessee's explanation for non-compliance was acceptable.

Which sections of the Income-tax Act were involved?

Section 250,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI RAKESH KUMAR LODHA

For Appellant: Shri Petarasp Bhagwagar, Ld. AR

PER SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER:

This appeal has been preferred by the Assessee against the order dated 01.03.2026, impugned herein, passed by Ld. Commissioner of Income Tax (Exemptions), Mumbai, [in short “Ld. Commissioner] u/s 250 of the Income Tax Act, 1961 [in short “the Act”] for the A.Y 2027-28.

2.

The Assessee did not comply with the notices issued during the appellate proceedings before the learned Commissioner. Consequently, the learned Commissioner was constrained to dispose of the appeal ex parte and ultimately dismissed the same. The Assessee has now before us, filed a duly sworn

2 ITA No.4949/Mum/2026 Settna Memorial Foundation affidavit explaining the reasons for such non-compliance, wherein, inter alia, it has been stated as under:

“AFFIDAVIT

I, Percy Rustomji, Indian inhabitant, having address at 4J, Vijay Chambers, Tribhuvan Road, Opp. Dreamland Cinema, Mumbai–400004, do hereby solemnly affirm and state as under: 1. I am a practising Chartered Accountant and am looking after the income-tax matters of Settna Memorial Foundation [“the Assessee”], having its office at Oricon House, 7th Floor, 14, K. Dubash Marg, Mumbai–400001.

2.

On 29.09.2025, I electronically filed Form No. 10AD, being the application for renewal of registration of the Assessee under section 12AB of the Income-tax Act, 1961 [“the Act”].

3.

The said application was rejected by the Commissioner of Income-tax (Exemptions), Mumbai [“CIT(E)”], on the ground that the notice dated 09.01.2026 [“the said notice”], requiring the Assessee to furnish a complete set of documents/details as prescribed under Rule 17A(2) of the Income-tax Rules, 1962, had not been complied with.

4.

I state that the said notice could not be complied with, as I was not aware of its issuance by the CIT(E).

5.

Upon becoming aware that the application of the Assessee for renewal of registration had been rejected, I accessed the income-tax portal of the Assessee and found that the said notice had been issued by the CIT(E).

6.

My registered mobile number on the portal of the Assessee is 9819813066, which is registered as both the primary and secondary mobile number.

7.

I state that the said notice was issued electronically on the portal of the Assessee. As I did not receive any message from the Income-tax

3 ITA No.4949/Mum/2026 Settna Memorial Foundation Department on my aforesaid registered mobile number regarding issuance of the said notice, I could not comply with the same.”

3.

Considering the peculiar facts and circumstances of the case and finding the explanation offered in the affidavit placed on record to be bona fide and plausible, we set aside the impugned order and restore the matter to the file of the ld. Commissioner for adjudication afresh in accordance with law, after affording the Assessee an adequate opportunity of being heard and by passing a reasoned and speaking order.

4.

The Assessee shall cooperate in the proceedings and furnish the requisite documents and explanations within the time allowed. It is clarified that, in the event of any further default without sufficient cause, the Assessee shall not be entitled to any leniency.

5.

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

Order pronounced in the open court on 06.08.2026.

Sd/- Sd/- RAKESH KUMAR LODHA NARENDER KUMAR CHOUDHRY, ACCOUNTANT MEMBER JUDICIAL MEMBER

KRK, Sr. PS

4 ITA No.4949/Mum/2026 Settna Memorial Foundation

आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / The CIT(A) 4. आयकर आयु�(अपील) / Concerned CIT 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण,मु�ई/ DR, ITAT, Mumbai 6. गाड� फाईल / Guard file. आदेशानुसार/BY ORDER, स�ािपत �ित //True Copy//

1.

उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु�ई / ITAT, Mumbai

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