SRI GURUNANAK DARBAR EDUCATION SOCIETY,MULUND WEST vs. CIT (EXEMPTIONS) MUMBAI, CUMBALLA HILL

Brief facts are that the assessee filed an application in Form No.10AB seeking registration/renewal of registration u/s 12AB of the Income-tax Act, 1961 ("the Act"). During the course of proceedings, the Ld. CIT(E) issued a notice dated 23/01/2026 calling upon the assessee to furnish the requisite details and documents. According to the Ld. CIT(E), there was no compliance to the said notice and, accordingly, the application came to be rejected.

Aggrieved by the impugned order, the assessee is in appeal before us.

When the appeal was called for hearing, none appeared on behalf of the assessee despite service of notice. We, therefore, proceed to dispose of the appeal ex parte qua the assessee, after hearing the Ld. DR and on the basis of the material available on record.

The Ld. DR relied upon the findings contained in the impugned order and submitted that the assessee had failed to comply with the notice issued by the Ld. CIT(E). However, it was fairly submitted that if the Bench finds that the assessee was not afforded an effective opportunity of being heard, appropriate directions may be issued restoring the matter to the file of the Ld. CIT(E).

We have heard the submissions of the Ld. DR and perused the material available on record. The impugned order reveals that

We find that the impugned order has been passed ex parte for non-compliance with the notice issued by the Ld. CIT(E). At the same time, the impugned order does not record any finding with regard to the charitable nature of the objects of the assessee or the genuineness of its activities, which are the relevant considerations while examining an application u/s 12AB of the Act. The application has thus been rejected solely on account of the alleged non-compliance.

Considering the totality of the facts and circumstances of the case and in the interest of substantial justice, we are of the considered opinion that the assessee deserves one more effective opportunity to present its case before the Ld. CIT(E). Accordingly, without expressing any opinion on the merits of the application, we set aside the impugned order and restore the matter to the file of the Ld. CIT(E) for de novo adjudication. The Ld. CIT(E) shall afford the assessee an adequate and reasonable opportunity of being heard, consider all the documents and evidences that may be furnished by the assessee and thereafter pass a reasoned and speaking order in accordance with law.

The assessee is directed to extend full cooperation during the fresh proceedings and furnish all requisite details and documents as may be called for by the Ld. CIT(E). Needless to state, in the event of any failure on the part of the assessee to cooperate, the Ld. CIT(E) shall be at liberty to proceed in accordance with law.