BHARAT UTTHAN SANGH,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI

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ITA 5438/MUM/2026Status: DisposedITAT Mumbai10 July 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the principles of natural justice require an effective opportunity of hearing and that any deficiencies should be specifically communicated. The CIT(E) should have pointed out specific defects before rejecting the application.

What were the facts?

The assessee's application for renewal of approval under section 80G was rejected by the CIT(Exemptions). The assessee contended that they were not given a reasonable opportunity of being heard and that the rejection was based on non-compliance with a single questionnaire.

What were the issues?

Whether the rejection of the 80G approval renewal application violated the principles of natural justice by not providing an effective opportunity of hearing and specific reasons for rejection.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH

For Respondent: Shri Azhar Kabir, SR DR
Hearing: 10/07/2026Pronounced: 10/07/2026

आदेश / O R D E R PER AMIT SHUKLA (J.M): This appeal has been filed by the assessee against the impugned order dated 04.03.2026 passed by the learned Commissioner of Income Tax (Exemption), Mumbai, whereby the assessee’s application seeking renewal of approval under section 80G of the Income-tax Act, 1961 has been rejected.

2 ITA No.5438/Mum/2026 Bharat Utthan Sangh 2. The grievance of the assessee is that the learned CIT(E) rejected the application without affording an effective and reasonable opportunity of being heard, thereby violating the mandate of the proviso to section 80G. It has been submitted that the application filed by the assessee was complete in all material respects and was accompanied by the requisite supporting documents, including the trust deed, registration certificates, details of trustees along with KYC documents, audited financial statements and other relevant records. The learned counsel submitted that except for a single questionnaire-cum-notice, no further opportunity or specific show-cause notice pointing out any defect or deficiency in the application or supporting documents was issued. It was thus contended that mere non-response to one questionnaire-cum- notice, without recording any adverse finding regarding the objects of the trust or the genuineness of its activities, could not have been made the sole basis for rejecting the application.

3.

We have considered the rival submissions and perused the material available on record. From the impugned order as well as the grounds raised before us, it appears that the application has primarily been rejected on account of non- compliance with the questionnaire-cum-notice issued by the learned CIT(E). At the same time, the assessee has consistently maintained that the application was duly

3 ITA No.5438/Mum/2026 Bharat Utthan Sangh supported by all primary documents and that no specific defect or deficiency was ever pointed out before passing the impugned order. In our considered opinion, where an application for renewal of approval under section 80G is sought to be rejected, the principles of natural justice require that the applicant should be afforded an effective and meaningful opportunity of hearing. If the authority finds any deficiency in the documents or requires any further clarification, the same ought to be specifically communicated so as to enable the assessee to furnish the requisite explanation or supporting material before an adverse decision is taken.

4.

Considering the totality of the facts and circumstances of the case, and in the interest of substantial justice, we deem it appropriate to set aside the impugned order and restore the matter to the file of the learned CIT(E) for fresh adjudication. The learned CIT(E) shall afford adequate and effective opportunity of hearing to the assessee, examine all the documents and explanations that may be furnished, and thereafter pass a reasoned order in accordance with law. The assessee is also directed to extend full cooperation in the proceedings and promptly comply with all notices and requisitions issued by the learned CIT(E).

4 ITA No.5438/Mum/2026 Bharat Utthan Sangh 5. In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced on 10th July, 2026.

Sd/- Sd/- (ARUN KHODPIA) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 10/07/2026 KARUNA, sr.ps

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy//

BY ORDER,

(Asstt. Registrar) ITAT, Mumbai

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