RESOURCE & SUPPORT CENTRE FOR DEVELOPMENT,NAVI MUMBAI vs. COMMISSIONER OF INCOME TAX EXEMPTIONS MUMBAI, MUMBAI

The brief facts borne out from the impugned order are that the assessee had filed an application in Form No.10AB on 30.09.2025 seeking renewal of registration under section 12AB of the Act. The learned CIT(E) observed that the application was not complete and that all the documents required under Rule 17A(2) had not been furnished. Accordingly, a notice dated 07.01.2026 was issued calling upon the assessee to furnish the requisite details. According to the learned CIT(E), there was no complete compliance with the said notice and, therefore, he was unable to satisfy himself regarding the objects of the trust, the genuineness of its activities and compliance with other applicable laws. On this premise alone, the application for renewal of registration under section 12AB came to be rejected.

Before us, the learned counsel for the assessee submitted that the impugned order has been passed without properly

We have carefully considered the rival submissions and perused the material available on record. The power conferred upon the learned CIT(E) while considering an application for registration or renewal under section 12AB necessarily requires him to examine the objects of the trust, the genuineness of its activities and such other statutory requirements as are contemplated under the Act. Such an exercise necessarily presupposes due consideration of the material placed on record as well as an effective opportunity to the applicant to explain or furnish any further particulars that may be required for arriving at a proper satisfaction. In the present case, the impugned order proceeds substantially on the premise that the assessee had not complied with all the requirements contained in the notice issued by the

The assessee is also directed to extend full cooperation in the fresh proceedings and furnish all such documents, records and explanations as may be called for by the learned CIT(E), who shall thereafter decide the application independently and strictly in accordance with law. Subject to these observations, the appeal of the assessee in ITA No.5732/Mum/2026 is treated as allowed for statistical purposes.

The second appeal relates to the rejection of the assessee’s application for renewal of approval under section 80G of the Act. From the impugned order, it is evident that the learned CIT(E) has rejected the application solely on the ground that the assessee’s application for renewal of registration under section 12AB had already been rejected and, therefore, one of the essential conditions prescribed under section 80G(5) was not fulfilled. No independent examination of the assessee’s claim under section 80G has been undertaken.

Since we have already restored the issue relating to renewal of registration under section 12AB to the file of the learned CIT(E) for fresh adjudication, the consequential rejection of approval under section 80G also cannot survive independently. Accordingly, we set aside the impugned order passed under section 80G and restore this issue as well to the file of the learned CIT(E), who shall reconsider the assessee’s application afresh after adjudicating the application under section 12AB and thereafter decide the claim for renewal of approval under section 80G in accordance with law, by passing a speaking order after granting due and effective opportunity of hearing to the assessee.

In the result, both the impugned orders are set aside and the respective matters are restored to the file of the learned CIT(E) for fresh adjudication in accordance with law and in the light of the observations made hereinabove. The assessee shall cooperate in the proceedings and furnish all requisite documents and details as may be called for. Since we have restored the matters for fresh consideration, we refrain from expressing any opinion on the merits of the claims. Accordingly, both the appeals of the assessee are allowed for statistical purposes.

In the result, both the appeals of the assessee are allowed for statistical purposes.