DATTA DURGA PUBLIC CHARITABLE TRUST,MUMBAI vs. DLC-WX-1 EXEM.WARD1(2) MUMBAI, INCOME TAX APPELLATE TRIBUNAL MUMBAI

आयकरअपीलीयअिधकरण�ायपीठमुंबईम�। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRICHALLA NAGENDRA PRASAD, JM & SHRI ARUN KHODPIA, AM I.T.A. No.4756/Mum/2026 (Assessment Year: 2026-27) Datta Durga Public Charitable DLC-WX-1 Exem. Ward 1(2), Trust Mumbai B 213 Sat Aasra Griha, Nirman Vs. DLC-WX-1 Exem. Ward 1(2), SA, Dr. SS Rao Road, Lalbaugh, Mumbai-400020 Mumbai-400012 PAN: AAATD9405E Assessee- अपीलाथ� / Appellant Revenue-��थ�/ Respondent :

Assesseeby : None : Shri Sandeep Lakra, CIT DR. Revenueby : 24.07.2026 Date of Hearing : 03.08.2026 Date of Pronouncement

O R D E R Per Arun Khodpia, AM: This appeal is preferred by the assessee, against the order of the Commissioner of Income Tax (Exemption), Mumbai [in short,“the Ld. CIT(E)”], dated 27.02.2026 rejecting the application of assessee for renewal of registration u/s 12AB of the Income Tax Act, 1961 [in short,“the Act”]. The grounds raised by the assessee are as under: “1. Ground No. 1 Rejection Order Passed in Violation of Natural Justice and in Ignorance of Documents on Record The Ld. CIT(Exemptions), Mumbai erred in law and on facts in passing the impugned rejection order dated 27.02.2026 without considering the complete set of documents

ITA No. 4756/Mum/2026 Datta Durga Public Charitable Trust including the self-certified copy of the earlier registration under Section 12A/12AA/10(23C) held under the old regime prior to 01.04.2021, which were duly uploaded on the Income Tax e-filing portal on 05.01.2026, as evidenced by the portal- generated acknowledgement of upload. The finding recorded at paragraphs 3 and 3.4 of the annexure to the impugned order that "the applicant has not furnished the requisite old 12A registration certificate" and "the applicant has failed to furnish the same" is factually incorrect and perverse on the face of the record, and accordingly, the rejection order is liable to be set aside. 2. Ground No. 2 Rejection Order is Based on a Mistake Apparent from the RecordThe Ld. CIT(Exemptions) committed a manifest error apparent from the record by recording a finding of non-submission of documents that were in fact submitted and duly uploaded, thereby rendering the impugned order passed in Form No. 10AD legally unsustainable. The Appellant has separately filed an application for rectification under Section 154 of the Income Tax Act, 1961 dated 21.03.2026, which remains pending adjudication. Without prejudice to the same, this appeal is being filed to safeguard the Appellant's interest within the prescribed limitation period. 3. Ground No. 3 Eligibility Conditions Duly Fulfilled; Erroneous Declaration of Valid Statutory Registration as Invalid Without Initiating Prescribed Cancellation Proceedings The Ld. CIT(Exemptions) erred in holding that the registration obtained under Section 12AB vide Form No. 10AC dated 28.05.2021 granted by CPC, Bengaluru, cannot be treated as invalid in law, solely on account of the alleged non-furnishing of the old regime registration certificate. This conclusion is erroneous both in law and on facts inasmuch as: (a) The Appellant was granted regular registration under Section 12AB for a period of five years from A.Y. 2022-23 το Α.Υ, 2026-27 by the competent authority (CPC, Bengaluru), which registration was in full force and effect at the time of filing Form 10AB; (b) Registration granted under Section 12AB by CPC, Bengaluru in Form 10AC is a valid statutory order issued under the Income Tax Act, 1961 and cannot be collaterally invalidated by the CIT(Exemptions) in proceedings under Section 12A(1)(ac)(ii) of the Act; (c) The CIT(Exemptions) does not have authority to declare a registration granted by CPC, Bengaluru, as invalid in Form 10AD proceedings under the amended registration regime without initiating proper proceedings under section 12AB(4) and giving an opportunity of being heard for the requisite information or documents. 4. Ground No. 4 Trust's Activities are Genuine Charitable and Spiritual Activities The Appellant is a public charitable trust registered under the Bombay Public Trusts Act, 1950, established for propagating spiritual guidance as imparted by Shri Swami Dattaavadhut, and for spreading the discipline of meditation, devotion, and spiritual lectures for the peace of mind and the right spiritual path. The objects and activities of the Trust are clearly charitable and spiritual in nature within the meaning of Section 2(15) of the Act, and the Trust has been consistently camrying on such activities since 2

ITA No. 4756/Mum/2026 Datta Durga Public Charitable Trust its inception. The Ld. CIT(Exemptions) erred In not adjudicating upon the genuineness of the Trust's activities before passing the impugned rejection order. The Ld. CIT(E) has erred in rejecting the application for renewal of registration under Section 12AB without granting a proper opportunity of being heard and without considering the material placed on record, thereby violating the principles of natural justice 5. Ground No. 5 Consequential and General The Appellant reserves the right to add, alter, or amend any of the above grounds of appeal with the leave of the Hon'ble Tribunal. The impugned order is contrary to the facts, law, and judicial precedents, thus, the Appellant prays that the impugned order be set aside and the matter be restored to the file of the Ld. CIT(E) with a direction to consider the application for renewal of registration in Form No. 10AB afresh on merits, after duly considering all submissions and documents filed, including those dated 05.01.2026. 2. On perusal of the facts available on record, it is noticed that the assessee’s application in Form No. 10AB, dated 26.09.2025, seeking renewal of registration under section 12AB of the Act, was rejected by the Ld. CIT(E) vide the impugned order on the ground that the assessee had not furnished the requisite registration certificate under the erstwhile provisions of section 12A, which was held by it prior to 01.04.2021 (the old regime).

2.1 It is further noted by the Ld. CIT(E) that the assessee had not complied with the procedure prescribed under the new regime for obtaining registration under section 12AB, namely, obtaining registration from the CPC in Form No. 10AC consequent to filing an application in Form No. 10A under sub-clause (i) of clause (ac) of section 12A(1) of the Act.

2.3 It is noted by the Ld. CIT(A) that, in absence of any prior registration under section 12AA or approval under section 10(23C) of the Act, the assessee

ITA No. 4756/Mum/2026 Datta Durga Public Charitable Trust was required to file an application in the prescribed manner under section 12AB, resulting in issuance of Form No. 10AC, by filing Form No. 10A under sub- clause (iv) of clause (ac) of section 12A(1) of the Act.

2.4 Since, the assessee had neither furnished the requisite details evidencing registration under the erstwhile regime nor submitted the details of expenses, bank statements, activities, donor details, etc., the Ld. CIT(E), treating such non- compliance as a violation of the mandatory provisions of law, rejected the application filed by the assessee.

ITA No. 4756/Mum/2026 Datta Durga Public Charitable Trust the order of Ld. CIT(E) in aforesaid appeals are set aside and the matter is restored back to his files for fresh consideration. 4.3 In result, both the appeals of assessee in ITA No.4883/Mum/2026 and 5577/Mum/2026 are allowed for statistical purposes.” 4. Having parity of facts and issue in instant case, respectfully following the aforesaid view adopted by the Tribunal (supra), we deem it appropriate to restore this matter back to the file of Ld. CIT(E) for fresh consideration of the application of the assessee and to dispose it of in accordance with the mandate of law. Needless to say that the assessee shall be afforded with reasonable opportunity of being heard in the set aside proceedings.

Order pronounced in the open court on 03.08.2026.

Sd/- Sd/- (ARUN KHODPIA) (CHALLA NAGENDRA PRASAD) JUDICIAL MEMBER ACCOUNTANT MEMBER

Mumbai, Dated: 03-08-2026. Ankit K., Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. Guard File 5. CIT

BY ORDER,

(Dy./Asstt. Registrar) ITAT, Mumbai 5