SELVAM EDUCATIONAL AND CHARITABLE TRUST,VADAKANKULAM vs. ACIT EXEMPTIONS, COIMBATORE

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ITA 3282/CHNY/2026Status: DisposedITAT Chennai12 August 2026AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found substance in the assessee's grounds and restored the matter to the CIT(E) for de novo proceedings. The assessee was directed to participate without adjournment.

What were the facts?

The assessee trust applied for registration under Section 12AB but the application was rejected by the CIT(E) for non-furnishing of required documents. The assessee argued that they held a valid registration under Form 10AC and the omission to reattach documents was a procedural oversight.

What were the issues?

Whether the rejection of registration application under Section 12AB was justified due to procedural omissions, despite the assessee holding a valid prior registration and presenting a reasonable cause.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 282

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: HONOURABLE SHRI GAGAN GOYAL & SHRI MANU KUMAR GIRI

Hearing: 23.07.2026Pronounced: 12.08.2026

आयकर अपीलीय अधिकरण ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI माननीय श्री गगन गोयल लेखा सदस्य के समक्ष एवं श्री मनु कुमार धगरर, न्याययक सदस्य BEFORE HONOURABLE SHRI GAGAN GOYAL, ACCOUNTANT MEMBER AND SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकर अपील सं./ITA No.3282/Chny/2026 यनिाारण वर्ा /Assessment Years: 2025-26 Selvam Educational & Charitable Trust, v. Assistant Commissioner of No.27, Raja nagar, Rajas Colleges, Income Tax Officer , College Road, Vadakkankulam, Exemptions Circle, Tirunelveli, Tamil Nadu-627 116. Coimbatore. [PAN: AACTS4170R] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr. Pon Shivaram NL, C.A, Ld. AR प्रत्यर्थी की ओर से /Revenue by : Mr. K. Jayaganesh, CIT, Ld. DR सुनवाईकीतारीख/Date of Hearing : 23.07.2026 घोषणाकीतारीख /Date of Pronouncement : 12.08.2026 आदेश / O R D E R PER GAGAN GOYAL, AM: This is an appeal preferred by the assessee against the order of Ld. Commissioner of Income Tax (E), (hereinafter referred as the ‘Ld. CIT(E)’), Chennai dated 30.03.2026, for the Assessment Year (hereinafter referred as the ‘AY’) 2025-26.

GROUDS OF APPEAL 1 The learned CIT Exemptions Chennai erred in law and on facts in rejecting the registration application filed under 1 Form 10AB, without considering that the appellant holds a valid registration under Form 10AC and satisfies all statutory compliance mandates under Rule 17A. 2 The learned CIT Exemption failed to appreciate that the appellant operated under a bona fide belief that Form 10AC with URN AACTS4170RE20211, having been issued by 2 the Department itself on 30.11.2022, was already fully integrated and visible within the

ITA No.3282/Chny/2026 (2025-26) Selvam Educational & Charitable Trust Department internal electronic record. The omission to manually reattach it was a purely procedural and clerical slip by a non-technical charitable organization. 3 The learned CIT Exemption failed to consider the reasonable cause presented by the appellant trust, which was undergoing a transitional phase involving the appointment of a new Statutory Auditor and the subsequent migration of tax and financial files, leading to an inadvertent administrative oversight during the e-proceedings. 4 The learned CIT Exemption erred in not granting relief in light of CBDT Circular No. 1/2026 and the beneficial amendments brought by the Finance Act 2024, which explicitly encourage the condonation of purely procedural and clerical delays to prevent genuine hardship for long standing philanthropic institutions. 5 The learned CIT Exemption erred in rejecting the application summarily under Section 12AB (1) (b) (ii) without evaluating the substantive objects (Education and Relief of the Poor) and verified audited financials of the trust on their true merits.

2.

The brief facts of the case are that the assessee filed an application in Form No.10AB on 13.09.2025 seeking registration u/s. 12AB of the Act. The application of the assessee was rejected by the Ld. CIT (E), Chennai as specified in para 2 of the order passed vide dated 30.03.2026. The assessee being aggrieved preferred the present appeal before us. We have gone through the order of the Ld. CIT (E), Chennai and submissions of the assessee along with ground taken before us.

3.

It is observed that the Ld. CIT (E), Chennai has observed that the following documents were not furnished by the assessee as prescribed under Rule 17A of the Income Tax Rules 1962: i. Trust deed / MOA/instrument creating or establishing the institution. ii. Financials & Note on activities. iii. Copy of approval u/s. 12A / 12AA obtained in the old regime i.e. prior to 01.04.2021.

4.

Before us the assessee has taken five grounds, out of these, ground nos. 1 & 2 drew our attention and the same are reproduced herein below as under: 1 The learned CIT Exemptions Chennai erred in law and on facts in rejecting the registration application filed under 1 Form 10AB, without considering that the appellant holds a valid registration under Form 10AC and satisfies all statutory compliance mandates under Rule 17A.

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ITA No.3282/Chny/2026 (2025-26) Selvam Educational & Charitable Trust 2 The learned CIT Exemption failed to appreciate that the appellant operated under a bona fide belief that Form 10AC with URN AACTS4170RE20211, having been issued by 2 the Department itself on 30.11.2022, was already fully integrated and visible within the Department internal electronic record. The omission to manually reattach it was a purely procedural and clerical slip by a non-technical charitable organization. 5. We find substance in the these grounds raised by the assessee and deem it fit to restore the matter back to the file of the Ld. CIT (E), Chennai based on ground nos. 1 & 2 mentioned (supra) for de novo proceedings after giving the assessee a proper opportunity of being heard as prescribed in section 282 of the Act. The assessee is also directed to participate in the proceedings against the notices issued by the office of Ld. CIT (E), Chennai without seeking any adjournment and so called presumptions and assumptions. Based on the above, grounds raised by the assessee are allowed for statistical purposes only.

6.

In the result, the appeal of the assessee is allowed for statistical purposes only.

Order pronounced on the 12th day of August, 2026 in Chennai.

Sd/- Sd/- (मनु कुमार गिरर) (गगन गोयल) (MANU KUMAR GIRI) (GAGAN GOYAL) न्याययक सदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER चेन्नई/Chennai, ददनाांक/Dated: 12th August, 2026. KB आदेश की प्रयतललपप अग्रेपषत/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT, Chennai /Madurai/Coimbatore/Salem 4. पवभागीय प्रयतयनधि/DR Digitally signed 5. गार्ड फाईल/GF K BABU by K BABU Date: 2026.08.13 16:02:18 +05'30'

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