AHURA SUPPORT,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH MUMBAI BEFORE SHRISAKTIJIT DEY, VICE PRESIDENT& SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER 1. ITA No. 4472/Mum/2026 (Assessment Year: 2026-27) 2. ITA No. 4461/Mum/2026 (Assessment Year: 2026-27) Ahura Support CIT (Exemptions) A6 Rustom Baug Room No. 601, Byculla, Mumbai- Vs. Cumballa Hill MTNL, 400 017 Pedder Road, Mumbai -400 026 PAN/GIR No. AAATA0045P (Applicant) (Respondent) Assessee by Shri M. M. Golvala, Ld. AR Revenue by Shri Yogesh Kamat, Ld. DR Date of Hearing 24.06.2026 Date of Pronouncement 29.06.2026 आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM: Since the above appeals arise out of two separate orders dated 25.02.2026 passed by the Commissioner of Income Tax (Exemptions), Mumbai, involving the same assessee, common

2 ITA No. 4472 & 4461/Mum/2026 Ahura Support facts and interconnected issues, they were heard together and are being disposed of by this consolidated order for the sake of convenience. 2. We first take up ITA No.4472/Mum/2026 relating to rejection of the assessee's application for renewal of registration under section 12AB of the Income-tax Act, 1961. 3. The assessee is a charitable trust established on 30.11.2006 with the principal object of rendering charitable services for the welfare, education and rehabilitation of children suffering from Down's Syndrome, spasticity and other severe disabilities. The trust had earlier been granted registration under section 12AA on 19.09.2007 and approval under section 80G on 18.07.2008. Subsequently, provisional registration under section 12AB as well as provisional approval under section 80G were granted on 28.05.2021. 4. The assessee filed Form No.10AB on 18.09.2025 seeking renewal of registration under section 12AB. During the course of proceedings, the learned CIT(Exemptions) issued a notice dated 23.01.2026 calling upon the assessee to furnish certain documents required under Rule 17A(2). Since, according to the learned CIT(Exemptions), the assessee failed to comply with the terms of the said notice, he observed that he was unable to satisfy himself regarding the objects of the trust, the genuineness of its activities and compliance with the applicable laws as contemplated under section 12AB(1)(b). Accordingly, vide order

3 ITA No. 4472 & 4461/Mum/2026 Ahura Support dated 25.02.2026, the application for renewal of registration under section 12AB was rejected. 5. Aggrieved by the aforesaid order, the assessee is in appeal before us. 6. The learned Authorised Representative (AR) submitted that the rejection of the application was solely on account of alleged non-compliance. It was contended that the assessee never received the notice dated 23.01.2026 either through its registered e-mail address or by way of SMS alert and consequently remained unaware of the proceedings before the learned CIT(Exemptions). The learned AR invited our attention to the affidavit dated 19.06.2026 sworn by Shri Burzis Shapur Taraporevala, Trustee of the assessee trust, wherein it has been affirmed that no notice in respect of the proceedings under section 12AB or section 80G was ever received through e-mail or SMS and that the non-compliance was neither deliberate nor intentional. It was, therefore, submitted that the impugned order deserves to be set aside and the matter restored to the file of the learned CIT(Exemptions) for fresh adjudication after granting adequate opportunity of hearing. 7. The learned Departmental Representative relied upon the impugned order. However, he fairly did not raise any serious objection if the matter is restored to the file of the learned CIT(Exemptions) for fresh consideration after affording one more opportunity to the assessee.

4 ITA No. 4472 & 4461/Mum/2026 Ahura Support 8. We have heard the rival submissions and perused the material available on record. It is an admitted position that the impugned order rejecting the assessee's application has been passed primarily on account of non-compliance with the notice issued by the learned CIT(Exemptions). The record further reveals that only one notice dated 23.01.2026 was issued during the course of the proceedings. 9. The assessee has placed on record an affidavit sworn by its Trustee affirming that the notice issued by the learned CIT(Exemptions) was never received either through the registered e-mail address or through SMS alert and, therefore, the assessee could not comply with the requirements contained therein. Significantly, the learned Departmental Representative has not seriously disputed the request of the assessee for restoration of the matter. 10. In our considered opinion, rejection of an application seeking renewal of registration under section 12AB has serious civil consequences. Therefore, before passing an adverse order, the authority concerned is required to afford a reasonable and effective opportunity of hearing consistent with the principles of natural justice. In the peculiar facts of the present case, where only one notice appears to have been issued and the assessee has explained the circumstances leading to non-compliance by filing a duly sworn affidavit, the ends of justice would be adequately served by restoring the matter to the file of the learned CIT(Exemptions) for fresh adjudication.

5 ITA No. 4472 & 4461/Mum/2026 Ahura Support 11. We accordingly set aside the impugned order dated 25.02.2026 passed under section 12AB and restore the matter to the file of the learned CIT(Exemptions). The learned CIT(Exemptions) shall afford the assessee a reasonable and effective opportunity of hearing, permit it to file all relevant documents and explanations in support of its application and thereafter pass a fresh speaking order in accordance with law. We clarify that we have expressed no opinion on the merits of the assessee's claim. 12. We shall now take up ITA No.4461/Mum/2026 relating to rejection of approval under section 80G. 13. The learned CIT(Exemptions) rejected the assessee's application for renewal of approval under section 80G solely on the ground that the application for renewal of registration under section 12AB had already been rejected by order dated 25.02.2026. Thus, the rejection of approval under section 80G is entirely consequential to the rejection of registration under section 12AB. 14. Since we have already set aside the order passed under section 12AB and restored the matter to the file of the learned CIT(Exemptions) for fresh adjudication, the consequential order rejecting approval under section 80G cannot survive independently. Accordingly, the impugned order dated 25.02.2026 rejecting approval under section 80G is also set aside and the matter is restored to the file of the learned CIT(Exemptions) for fresh adjudication. The learned

6 ITA No. 4472 & 4461/Mum/2026 Ahura Support CIT(Exemptions) shall decide the assessee's application for approval under section 80G afresh in accordance with law after adjudicating the application under section 12AB and after granting adequate opportunity of hearing to the assessee.

Order pronounced in the open court on 29.06.2026.

Sd/- Sd/- (SAKTIJIT DEY) (MAKARAND VASANT MAHADEOKAR) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 29/06/2026 Dhananjay, Sr.PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलाथी / The Appellant 1. प्रत्यथी / The Respondent. 2. 3. संबंधधत आयकर आयुक्त / The CIT(A) आयकर आयुक्त(अपील) / Concerned CIT 4. धिभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, मुम्बई/ DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. 6. आदेशानुसार/BY ORDER, सत्याधपत प्रधत //True Copy// 1. उि/सहायक िंजीकार ( Asst. Registrar) आयकर अिीिीय अतिकरण, मुम्बई / ITAT, Mumbai