THE SHIKSHAN MANDAL, GOREGAON,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI, MUMBAI

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ITA 5765/MUM/2026Status: DisposedITAT Mumbai10 July 2026AY 2027-283 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not afforded an effective and reasonable opportunity to furnish explanations. Therefore, the matter was restored to the CIT(E) for fresh adjudication.

What were the facts?

The assessee's application for registration under section 12AB of the Income-tax Act was rejected by the CIT(E). The assessee contended that the rejection was based on a single show-cause notice without an effective opportunity to respond.

What were the issues?

Whether the rejection of registration under Section 12AB was valid without providing an effective opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH

For Appellant: Shri Viral Shah
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 26.03.2026 passed by the learned Commissioner of Income Tax (Exemption), Mumbai, whereby the assessee’s application seeking registration under section 12AB of the Income-tax Act, 1961 has been rejected.

2 ITA No.5765/Mum/2026 The Shikshan Mandal, Goregaon 2. Before us, the learned counsel for the assessee submitted that the learned CIT(E) rejected the application after issuing only one show-cause notice and without affording an effective and meaningful opportunity of hearing. It was contended that the assessee could not adequately respond to the said notice, resulting in the impugned order being passed. It was, therefore, prayed that the matter 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. We find that the application has been rejected after issuance of only one show-cause notice. In our considered opinion, before rejecting an application seeking registration under section 12AB, the assessee should be afforded an effective and reasonable opportunity to furnish the requisite documents and explanations. Since such opportunity was not effectively available in the present case, we deem it appropriate, in the interest of substantial justice, to restore the matter to the file of the learned CIT(E).

4.

Accordingly, we set aside the impugned order and restore the matter to the file of the learned CIT(E) with a direction to adjudicate the assessee’s application afresh in accordance with law after affording due and effective opportunity of

3 ITA No.5765/Mum/2026 The Shikshan Mandal, Goregaon hearing. The assessee shall extend full cooperation in the proceedings and furnish all such documents and information as may be required by the learned CIT(E).

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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