SNEHAJYOT DIVYANG SEVA PRATISHTHAN,MUMBAI vs. CIT EXEMPTION , MUMBAI

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ITA 3345/MUM/2026Status: DisposedITAT Mumbai14 July 2026AY 2025-265 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection of the approval was unsustainable as the assessee had disclosed the date of its creation and the original approval was granted considering this fact. No violation of the earlier approval was pointed out.

What were the facts?

The assessee trust applied for renewal of registration under Section 80G(5). The CIT(Exemptions) rejected the application, stating that the original approval was invalid as no registration existed in the old regime prior to April 1, 2021. The assessee argued that it was established after this date and had disclosed this fact.

What were the issues?

Whether the rejection of the renewal of 80G approval was justified when the assessee was established after the specified cut-off date and had disclosed this fact during the initial approval.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12AB,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: HON’BLE SHRI PAWAN SINGH, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Manoj Kumar Aggarwal (Accountant Member)

1.

Aggrieved by rejection of registration application seeking renewal of regular approval u/s 80G(5) vide impugned order dated 22.02.2026 of learned Commissioner of Income Tax (Exemption), the assessee is in further appeal before us with following grounds:

1.

The learned CIT (Exemptions) erred in rejecting the application in Form 10AB filed for renewal under section 80G (5) of the Act, without appreciating that the assesses trust was registered under 12AB of the Act up to 31/3/2036 vide order date 21/2/2026 and sec. 80G (5) regular approval was granted up to A.Y. 2026 – 2027, therefore, denial of further approval vide order dated: 22-02-2026 was unjustified.

2.

The learned CIT(Exemptions) failed to appreciate that complete facts of formation of trust as on 21.12.2021, registration dated 08-02-2022 under section 12A of the Act were already on the record of the department while granting registration u/s. 80G of the Act dated 10/3/2022 for a period of 5 years, therefore the denial was unjustified.

2.

Upon perusal of para 3.4 of the impugned order, it could be seen that the approval has been denied on the fact that the assessee failed to furnish the requisite approval u/s 80G as granted to the assessee in old regime prior to 01.04.2021. Since no registration existed in the old regime, the validity of approval granted u/s 80G in form 10AC on 10.03.2022 was held to be not established. Accordingly, the approval claimed by the assessee was held to be not valid in law and the assessee was held ineligible to claim impugned approval. The approval was not allowable on the ground of invalid approval obtained u/s 80G for 5 years in Form No.10AC.

3.

The Ld. AR advanced arguments and tabulated the sequence of registration events as under: - No. DATE EVENTS PG. NO. 1. 21.12.2021 The trust registered with Charity Commissioner. Registered under 1 Society Act 1860 on 06.07.2021. Vision: To empower Physical challenged people to live their life with self pride through skill training, medical assistance, counseling etc. 2. 19.01.2022 The Assessee filed Form no. 10A Application for provisional registration 2-7 u/s 12A. 3. 08.02.2022 In Form 10AC Provisional Registration granted u/s 12A(1)(ac)(vi) to the 8-10 Trust from A.Y.:2022-23 to 2024-25 4. 22.02.2022 The Assessee filed Form no. 10A Application for Registration u/s 80G(5). 11-16 5. 10.03.2022 In Form no. 10AC Approval granted u/s 80G(5)(i) to the Trust from A.Y.: 17-18 2022-23 to 2026-27 6. 22.09.2023 The Assessee filed Form no. 10AB Application for registration u/s 12A 19-29 7. 06.02.2024 Form no. 10AD Approval granted u/s 12AB(1)(b) upto A.Y.:2022-23 to 30-33 2026-27 to the Trust.

8.

25.09.2025 The Assessee filed Form no. 10AB Application or Registration u/s 34-44 12A(1)(ac)(ii) 9. 25.09.2025 The Assessee filed Form no. 10AB Application for Registration u/s 49-58 80G(5)(ii). 10. 01.02.2026 Notice issued by CIT(E) to the Assessee. 59-61 11. 05.02.2026 Assessee letter filed before CIT(E) 62-71 12. 21.02.2026 Form no. 10AD Approval granted u/s 12 AB(1)(b) upto A.Y.: 2027-28 to 45-48 2036-37 to the Trust. 13 22.02.2026 Sec 80G approval rejected

From the above tabulation, it could be seen that the assessee trust was duly registered with Charity Commissioner on 21.12.2021 with an objective to empower physically challenged people to live their life with self-pride through skill training, medical assistance, counseling etc. It had no existence prior to 01.04.2021. The assessee was granted provisional registration u/s 12A(1)(ac)(vi) on 08-02-2022 for AYs 2022- 23 to 2024-25. The said registration is applicable for new institutions / trusts. Subsequently, the assessee was also granted regular registration u/s 12AB(1)(b) on 06.02.2024 for AYs 2022-23 to 2026-27 which was again renewed on 21.02.2026 for AYs 2027-28 to 2036-37. 5. So far as the approval u/s 80G is concerned, it could be seen that the assessee was granted approval u/s 80G(5)(i) on 10.03.2022 for AYs 2022-23 to 2026-27. The said approval was granted on the basis of an application filed by the assessee in Form No.10A on 22.02.2022 which is kept on Page Nos.11 to 16 of the paper-book. Upon perusal of the same, it could be seen that the date of creation in column no.4C was clearly mentioned as 21.12.2021. There was thus clear disclosure

of the fact about date of creation of assessee-trust and considering this fact only, the approval was granted to the assessee. Subsequently, the assessee sought renewal of the approval in Form No.10AB on 25.09.2025 disclosing all the material facts including particulars of assets and liabilities and income details for the past three years. However, the registration has been denied merely on the ground that the original approval granted to the assessee was not valid since no registration existed in the old regime overlooking the fact that the assessee was not even in existence before 01.04.2021 and it was granted original approval u/s 80G wherein this fact was clearly disclosed by the assessee in its relevant applcation. Pertinently, no violation of earlier approval has been pointed out in the impugned order. Therefore, the rejection of approval, in our considered opinion, has no sound basis. The assessee has acted in a bona-fide manner and rejection of impugned application could not be held to be sustainable. Therefore, we direct registration authority to grant impugned approval to the assessee as per its application.

6.

The appeal stand allowed. Order pronounced u/r 34(4) of ITAT Rules, 1963. (PAWAN SINGH) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER ANKIT, PS Dated: 14.07.2026

आदेश की प्रतितलतप अग्रेतिि /Copy of the Order forwarded to : 1. अपीलाथी/Appellant 2. प्रत्यथी/Respondent 3. आयकरआयुक्त/CIT 4. ववभागीयप्रवतवनवि/DR 5. गार्डफाईल/GF

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