SANSKARDHAM KELAVANI MANDAL,MUMBAI vs. INCOME TAX OFFICER, MUMBAI

The brief facts of the case are that the assessee is a charitable trust who filed an application in Form No. 10AB on 30.09.2025 under section 12A(1)(ac)(ii) of the Income-tax Act, 1961 ("the Act") for renewal of its registration under section 12AB of the Act. During the course of processing the application, the CIT(Exemptions) noticed that the application was incomplete and requisite documents prescribed under Rule 17A(2) of the Income-tax Rules, 1962 had not been furnished. Accordingly, CIT(Exemptions) issued a notice dated 17.11.2025 asking the assessee to furnish various documents like a self- certified copy of the registration certificate granted under the erstwhile provisions of section 12A/12AA or the approval granted under section 10(23C) prior to 01.04.2021, along with supporting documents relating to the activities of the trust, details of expenditure, bank statements and donor details.

In response, the assessee furnished certain details and documents vide letter dated 14.01.2026. However, according to the CIT(Exemptions), the assessee failed to produce the earlier registration certificate under section 12A/12AA of the Act, despite having been given an opportunity to do so.

The CIT(Exemptions) observed that under the amended registration regime introduced with effect from 01.04.2021 by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, trusts and institutions which already held registration under section 12AA of the Act under the old regime were required to migrate to the new regime by filing Form No. 10A under section 12A(1)(ac)(i), wherein registration under section 12AB was granted in Form No. 10AC without any detailed verification by the Centralised Processing Centre. On the other hand, trusts which did not possess registration under the old regime were required to seek only provisional registration under section 12AB by filing Form No. 10A under section 12A(1)(ac)(vi) of the Act. Therefore, according to the CIT(Exemptions), while considering an application for renewal in Form No. 10AB, the applicant was required to establish that it was having a registration under section 12A/12AA or approval under section 10(23C) prior to 01.04.2021 (under Old regime) by producing the relevant registration certificate. The CIT(Exemptions) further observed that although the assessee had been granted registration under section 12AB in Form No. 10AC dated 04.04.2022 which was valid from Assessment Years 2022-23 to 2026-27, this registration had been issued by CPC without verification. In the absence of the earlier registration certificate under the old regime, the CIT(Exemptions) held that the validity of the registration granted in Form No. 10AC itself could not be verified and, consequently, the assessee was unable to satisfy the eligibility conditions for renewal of registration under section 12AB of the Act.

The CIT(Exemptions) further observed that registration under section 12AB can be granted only after being satisfied about the charitable objects of the trust, the genuineness of its activities and whether the assessee / applicant trust had complied with various laws as applicable to the assessee. Since the assessee had not produced the documentary evidence to show that registration had been granted to it under the old regime CIT(Exemptions) rejected the application filed by the assessee / applicant trust.

The assessee is in appeal before us against the order passed by the CIT(Exemptions) rejecting the application for renewal of registration under section 12AB of the Act.

We have heard the rival contentions and perused the material available on record. We observe that the application filed by the assessee / applicant trust has been rejected on the ground that the assessee trust failed to furnish the approval/registration granted under section 12A/12AA of the Act under the old regime. Accordingly, the learned CIT(Exemptions) rejected the application filed by the assessee. The counsel for the assessee submitted before us that the assessee trust had inadvertently failed to furnish the approval granted under section 12A of the Act during the proceedings before the CIT(Exemptions). However, before us, the learned Authorised Representative has drawn our attention to page 78 of the Paper Book, wherein the earlier approval granted under section 12A under the Old regime has been placed on record.

In our considered view, once the relevant approval is available, the same deserves to be examined by the CIT(Exemptions) in the interest of justice. At the same time, we also note that after noticing the deficiency in the documents furnished by the assessee / applicant trust, the CIT(Exemptions) simply proceeded to reject the application filed by the assessee, without granting the assessee trust any further opportunity to furnish the document, which as per CIT(Exemptions) was required to be filed in order to process the application filed by the assessee / applicant trust. Considering the fact that there is a genuine omission on part of the assessee / applicant trust and further since the relevant approval granted under the Old regime has been produced before us, we are of the view that, in the interest of justice, the matter may be restored to the file of the CIT(Exemptions) for de novo consideration.

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

The brief facts of the case are that the assessee is a charitable trust which filed an application for approval under section 80G(5) of the Act.. The CIT(Exemptions) observed that the assessee had also filed a separate application seeking renewal of registration under section 12AB of the Act. The CIT(Exemptions) held that since the assessee was not entitled to registration under section 12AB of the Act, the application for approval under section 80G of the Act was also liable to be rejected

The Applicant Trust is in appeal before us against the order passed by CIT(Exemptions) rejecting the application filed by the assessee / applicant trust.

We have heard the rival contentions and perused the material available on record. We find that the impugned order rejecting the application for approval under section 80G of the Act is consequential to the order passed by the CIT(Exemptions) rejecting the assessee's application for renewal of registration under section 12AB of the Act. Since, in the connected appeal, we have already set aside the order passed under section 12AB of the Act and restored the matter to the file of the CIT(Exemptions) for de novo adjudication, the very basis on which the present order has been passed no longer survives.

Accordingly, we hereby restore the matter of grant of approval u/s 80G of the Act to the file of the CIT(Exemptions) for de novo consideration.

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

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