BLOOMING BLOSSOMS EDUCATIONAL SOCIETY,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI, MUMBAI,MAHARASHTRA

PDF · subscribers
ITA 5554/MUM/2026Status: DisposedITAT Mumbai10 July 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that passing orders before the expiry of the granted compliance time violated the principles of natural justice. Therefore, the impugned orders were set aside, and the matters were restored to the CIT(E) for fresh adjudication.

What were the facts?

The assessee's applications for renewal of registration under section 12AB and approval under section 80G were rejected by the CIT(Exemptions). The CIT(E) issued a show-cause notice granting time until March 9, 2026, but passed the rejection orders on March 4, 2026.

What were the issues?

Whether the rejection of registration and approval applications was in violation of the principles of natural justice due to premature passing of orders by the CIT(E)?

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH

Before: SHRI AMIT SHUKLA & SHRI ARUN KHODPIA

For Appellant: Shri Satish Modi
For Respondent: Shri Azhar Kabir, SR DR
Hearing: 10/07/2026

आदेश / O R D E R PER BENCH: These two appeals have been filed by the assessee against the separate impugned orders dated 04.03.2026 passed by the learned Commissioner of Income Tax (Exemption), Mumbai, whereby the assessee’s applications seeking renewal of registration under section 12AB and approval under section 80G of the Income-tax Act, 1961 have been rejected. Since common facts and

2 ITA No.5554 & 5555/Mum/2026 Blooming Blossoms Educational Society identical issues are involved, both the appeals were heard together and are being disposed of by this consolidated order.

2.

The learned counsel for the assessee submitted that the impugned orders deserve to be set aside as the assessee was not afforded an effective and reasonable opportunity of hearing before rejection of its applications. It was pointed out that the learned CIT(E) had issued only one show-cause notice dated 27.02.2026, wherein the assessee was granted time up to 09.03.2026 to furnish the requisite documents and explanations. However, without waiting for the expiry of the time granted in the very notice, the learned CIT(E) proceeded to pass the impugned orders on 04.03.2026, i.e., five days before the expiry of the time allowed for compliance. It was, therefore, submitted that the impugned orders are in clear breach of the principles of natural justice and deserve to be restored to the file of the learned CIT(E) for fresh adjudication. The learned Departmental Representative fairly left the issue to the discretion of the Bench.

3.

We have considered the rival submissions and perused the material available on record. The undisputed factual position emerging from the record is that the learned CIT(E) issued a show- cause notice dated 27.02.2026, granting the assessee time up to 09.03.2026 for furnishing the requisite details. However, the impugned orders came to be passed on 04.03.2026, much before the expiry of the time granted by the authority itself. Once a statutory authority grants time to an assessee for compliance, it is expected to honour the same and await the expiry of the stipulated

3 ITA No.5554 & 5555/Mum/2026 Blooming Blossoms Educational Society period before taking any adverse decision. Passing the impugned orders prior to the expiry of the time granted has effectively deprived the assessee of the opportunity expressly afforded under the notice and, therefore, constitutes a clear violation of the principles of natural justice.

4.

In these facts and circumstances, we deem it appropriate, in the interest of substantial justice, to set aside both the impugned orders and restore the matters to the file of the learned CIT(E). The learned CIT(E) shall consider the entire material and documents that may be furnished by the assessee and thereafter pass fresh speaking orders in accordance with law after affording adequate and effective opportunity of hearing. The assessee is also directed to extend full cooperation in the proceedings and promptly furnish all the information and documents as may be called for.

5.

In the result, both the appeals of the assessee are 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

4 ITA No.5554 & 5555/Mum/2026 Blooming Blossoms Educational Society 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

More judgments on Section 12AB

All 5,972 judgments and leading authorities on Section 12AB →

Recent GST High Court judgments

Search GST case law →