DESTITUTE ERANIS CHARITY FUND,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI

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ITA 3180/MUM/2026Status: DisposedITAT Mumbai27 July 2026AY 2027-284 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the denial of Section 12AB registration was the sole basis for rejecting the Section 80G approval, and that basis no longer exists, the impugned order cannot be sustained. The matter was restored to the CIT(E) for fresh consideration.

What were the facts?

The assessee's application for approval under Section 80G(5) was rejected because registration under Section 12AB was denied. Subsequently, the assessee was granted registration under Section 12AB.

What were the issues?

Whether the rejection of Section 80G approval is valid when the underlying reason (denial of Section 12AB registration) has been subsequently rectified.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: SMT. BEENA PILLAI, HON’BLE & SHRI ARUN KHODPIA, HON’BLE

For Respondent: Shri Sandeep Lakra CIT DR
Pronounced: 27/07/2026

आयकर अपील�य अ�धकरण, मुंबई पीठ�, मुंबई INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: D BEFORE SMT. BEENA PILLAI, HON’BLE JUDICIAL MEMBER AND SHRI ARUN KHODPIA, HON’BLE ACCOUNTANT MEMBER

ITA 3180/MUM/2026 िनधा�रण वष�/Assessment Year: 2027-28) DESTITUTE ERANIS CHARITY CIT (EXEMPTIONS) FUND ROOM NO.601, 6TH FLOOR, ERANI DHARAMSHALA CUMBALLA HILL MTNL TE BUILDING, 1ST FLOOR, 26, BUILDING, PEDDER ROAD, PANDITA RAMABAI MARG, Vs. DR GOPALRAO DESHMUKH GAMDEVI, MUMBAI, MUMBAI- MARG, CUMBALA HILL, 400007, MAHARASHTRA MUMBAI-400026, MAHARASHTRA अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of AAATD0119P Assessee:

अपीलाथ� �ारा/Appellant represented by: None ��थ� �ारा/Respondent represented by: Shri Sandeep Lakra CIT DR.

सुनवाई की तारीख / Date of conclusion of hearing: 21-Jul-2026 घोषणा की तारीख / Date of pronouncement: 27/07/2026 आदेश / ORDER PER SMT. BEENA PILLAI, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order dated 14/02/2026 passed by the Ld. Commissioner of Income Tax (Exemptions), Mumbai ["Ld. CIT(E)"], whereby the assessee's application seeking approval u/s 80G(5) of the Income-tax Act, 1961 ("the Act") came to be rejected.

2.

At the outset, the Ld. AR submitted that the impugned order rejecting the assessee's application for approval u/s 80G(5) of the Act was passed solely on the ground that registration u/s 12AB had been denied. It was submitted that, subsequent to the passing of the impugned order, the Ld. CIT(E) has granted registration to the assessee u/s 12AB vide order dated 04/05/2026. The Ld. AR further submitted that the appeal filed by the assessee against the earlier rejection of registration u/s 12AB in ITA No. 2395/Mum/2026 was disposed of by the Tribunal vide order dated 09/07/2026 as having become infructuous in view of the subsequent grant of registration. It was, therefore, contended that the rejection of approval u/s 80G, being purely consequential to the earlier denial of registration u/s 12AB, no longer survives and the matter may be restored to the file of the Ld. CIT(E) for considering the assessee's application for approval u/s 80G afresh in accordance with law.

2.1. The Ld. DR did not seriously dispute the factual position regarding the subsequent grant of registration u/s 12AB to the assessee.

We have perused the submissions advanced by both sides in light of the records placed before us.

3.

It is an admitted position that the impugned order rejecting approval u/s 80G(5) of the Act was founded entirely on the denial of registration u/s 12AB. It is equally undisputed that the assessee has subsequently been granted registration u/s 12AB vide order dated 04/05/2026 and, consequently, the appeal filed by the assessee against the earlier rejection of registration was dismissed 2 as infructuous by the Tribunal in ITA No. 2395/Mum/2026 vide order dated 09/07/2026. Since the very basis on which approval u/s 80G was denied no longer exists, the impugned order cannot be sustained. We, therefore, set aside the impugned order and restore the matter to the file of the Ld. CIT(E) with a direction to examine the assessee's application for approval u/s 80G(5) afresh, independently and in accordance with law, after affording the assessee a reasonable opportunity of being heard. We clarify that we have not expressed any opinion on the merits of the assessee's eligibility for approval u/s 80G, and all contentions are left open.

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

Order pronounced in the open court on 27/07/2026.

Sd/- Sd/- ARUN KHODPIA BEENA PILLAI ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: 27/07/2026 SC, Sr. P.S.

Copy to: DESTITUTE ERANIS CHARITY FUND, ERANI DHARAMSHALA BUILDING, 1ST FLOOR, 26, PANDITA RAMABAI MARG, 1 GAMDEVI, MUMBAI, MUMBAI-400007, MAHARASHTRA CIT (EXEMPTIONS), ROOM NO.601, 6TH FLOOR, CUMBALLA HILL MTNL TE BUILDING, 2 PEDDER ROAD, DR GOPALRAO DESHMUKH MARG, CUMBALA HILL,, MUMBAI-400026, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE

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