DESAI FOUNDATION FOR CHANGE,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI

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ITA 4592/MUM/2026Status: DisposedITAT Mumbai29 June 2026AY 2026-274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection was primarily due to non-compliance without examining the substantive merits of the claim. In the interest of justice, the matter was restored to the CIT(Exemptions) for fresh adjudication.

What were the facts?

The assessee trust's application for registration under Section 12AB was rejected by the CIT(Exemptions) for non-compliance with a notice. The assessee claimed the non-compliance was due to bona fide circumstances and sought an opportunity to furnish the required documents.

What were the issues?

Whether the rejection of registration under Section 12AB for non-compliance with a notice, without examining the merits, is justified. Whether the assessee should be granted an opportunity to furnish required documents.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘E’ BENCH

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

For Respondent: Smt. Amrita Singh, CIT DR
Hearing: 29/06/2026Pronounced: 29/06/2026

आदेश / O R D E R PER AMIT SHUKLA (J.M): The present appeal has been preferred by the above- named assessee trust against the order dated 14.03.2026 passed by the learned CIT (Exemption), whereby the application filed by the assessee seeking registration under section 12AB of the Income-tax Act has been rejected.

2 ITA No.4592/Mum/2026 Desai Foundation For Change 2. We have heard the rival submissions and perused the material available on record. From the impugned order, it transpires that the learned CIT (Exemption) has rejected the assessee’s application primarily on the ground that the assessee failed to comply with the notice dated 24.01.2026 and, consequently, did not furnish the documents and particulars required for examining its claim for registration under the Act.

3.

Before us, the learned counsel submitted that the non- compliance with the aforesaid notice was neither deliberate nor intentional and had occurred on account of bona fide circumstances. It was further submitted that the assessee is now ready and willing to furnish all the requisite documents, explanations and evidences as may be required by the learned CIT (Exemption) and requested that one effective opportunity be granted so that the application may be considered on its merits.

4.

Having considered the rival submissions and the material placed before us, we are of the considered view that the rejection of the assessee’s application has resulted primarily from non-compliance with the notice issued during the course of the proceedings, without the claim being examined on its substantive merits. In the interest of justice, therefore, we deem it appropriate to restore the matter to the file of the

3 ITA No.4592/Mum/2026 Desai Foundation For Change learned CIT (Exemption) for fresh adjudication. Accordingly, the impugned order is set aside and the matter is restored to the file of the learned CIT (Exemption) with a direction to examine the assessee’s application afresh in accordance with law after affording a reasonable opportunity of hearing. The assessee shall furnish all the documents, evidences and other particulars as may be called for by the learned CIT (Exemption), who shall thereafter pass a reasoned and speaking order in accordance with law.

5.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced on 29th June, 2026.

Sd/- Sd/- (GIRISH AGRAWAL) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 29/06/2026 KARUNA, sr.ps

4 ITA No.4592/Mum/2026 Desai Foundation For Change 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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