LIONS CLUB OF SOL MUMBAI CHARITABLE TRUST ,MUMBAI vs. CIT EXEMPTIONS, MUMBAI

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ITA 4602/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. The matter was restored to the CIT for a fresh examination after providing an effective opportunity.

What were the facts?

The assessee trust applied for registration under section 12AB of the Income-tax Act. The CIT (Exemption) rejected the application for non-compliance with a notice seeking documents and details.

What were the issues?

Whether the CIT (Exemption) was justified in rejecting the registration application solely on grounds of non-compliance with a notice, without considering the merits of the application.

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 Appellant: Ms. Mahima Sharma
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 28.02.2026 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.4602/Mum/2026 Lions Club of Sol. Mumbai Charitable Trust 2. We have heard the rival submissions and carefully perused the material available on record. From the impugned order, it is seen 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 02.01.2026 calling upon it to furnish the requisite documents and details in support of its claim for registration. In the absence of the requisite compliance, the learned CIT (Exemption) proceeded to reject the application.

3.

Before us, the learned counsel submitted that the non- compliance with the aforesaid notice was occasioned by bona fide circumstances and was neither deliberate nor intentional. It was further submitted that the assessee is prepared to furnish all the documents, evidences and explanations as may be required by the learned CIT (Exemption) and, therefore, prayed that one effective opportunity may be granted so that the application can be examined on its merits.

4.

Having considered the rival submissions and the facts borne out from the record, we are of the considered opinion that the assessee’s application deserves to be examined on the basis of the relevant material after affording an effective opportunity of hearing. Since the impugned order has been passed primarily on account of non-compliance with the notice issued during the course of the proceedings, without

3 ITA No.4602/Mum/2026 Lions Club of Sol. Mumbai Charitable Trust the claim being examined on its substantive merits, the ends of justice would be best served by restoring the matter to the file of the learned CIT (Exemption). 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 consider the same objectively and 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.4602/Mum/2026 Lions Club of Sol. Mumbai Charitable Trust

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

(Asstt. Registrar) ITAT, Mumbai

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