SHREE VIRSHASAN PRABHAVANA TRUST ,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

This appeal filed by the assessee is directed against the order dated 30.12.2025 passed by the learned Commissioner of Income Tax (Exemptions), Mumbai [“CIT(E)”] rejecting the application filed by the assessee in Form No.10AB for approval under section 80G(5) of the Income-tax Act, 1961 (“the Act”).

The effective grievance of the assessee is that the learned CIT(E) erred in rejecting its application for renewal of approval under section 80G of the Act.

Briefly stated, the assessee is a religious-cum-charitable trust. It filed an application in Form No.10AB on 22.04.2025 seeking approval under clause (iv)(B) of the first proviso to section 80G(5) of the Act. The learned CIT(E), observing that one of the objects of the assessee contemplated activities outside India, held that the same was in violation of section 11 of the Act and rejected the application.

The learned Authorised Representative submitted that registration under section 12A/12AB of the Act has subsequently been granted to the assessee. He further submitted that the impugned order, though arising from an application for approval under section 80G, has proceeded entirely on considerations relevant to registration under section 12AB. Reliance was placed on the decision of the Co-ordinate Bench in Dedhia Music Foundation v. CIT(E), ITA Nos.743 & 734/Mum/2025, dated 02.04.2025. The learned Departmental Representative relied upon the impugned order.

We have considered the rival submissions and perused the material available on record. We find that the application before the learned CIT(E) was for approval under section 80G(5) of the Act. However, in paragraphs 8 and 9 of the impugned order, the learned CIT(E) has discussed the conditions for registration under section 12AB and has even recorded that the application seeking registration under section 12AB stands rejected. Thus, the application for approval under section 80G has not been examined on the parameters relevant to that provision. Further, the registration under section 12A/12AB is stated to have subsequently been granted to the assessee.

Considering the above facts and the decision of the Co-ordinate Bench in Dedhia Music Foundation (supra), we set aside the impugned order and restore the application to the file of the learned CIT(E) for fresh adjudication in accordance with law. The learned CIT(E) shall take into consideration the subsequent grant of registration under section 12A/12AB and decide the application for approval under section 80G on its own merits, after affording reasonable opportunity of hearing to the assessee. We have not expressed any opinion on the merits of the application.

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