SARCOMA EDUCATION FOUNDATION,MUMBAI vs. ASSESSING OFFICER - EXEMPTION WARD 2(3), MUMBAI

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ITA 4605/MUM/2026Status: DisposedITAT Mumbai29 June 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal held that the rejection was based on a procedural defect (inadvertent error in filing) and not on any adverse findings regarding the trust's charitable objects or activities. The matter should be re-examined under the correct statutory provision.

What were the facts?

The assessee, a newly established charitable trust, applied for registration under section 12AB of the Income-tax Act. The application was rejected by the CIT (Exemption) due to an error in filing under an incorrect statutory clause.

What were the issues?

Whether a registration application under section 12AB can be rejected solely on the ground of a procedural error in selecting the statutory clause, without examining the substantive eligibility of the trust.

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. Krupa J Shah
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 impugned order 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.4605/Mum/2026 Sarcoma Education Foundation 2. We have heard the rival submissions and carefully perused the material placed before us. The facts borne out from the record reveal that the assessee is a newly constituted charitable trust, having been established on 04.12.2020, and was granted registration by the office of the Charity Commissioner on 12.08.2021. Thereafter, the assessee sought registration under the provisions of the Income-tax Act by filing the prescribed Form No. 10A/10AB. The impugned order reveals that the learned CIT (Exemption) rejected the assessee’s application essentially on the ground that the application had been filed under an incorrect statutory clause and, consequently, the registration claimed by the assessee under the amended registration regime was treated as not being in accordance with law.

3.

Before us, the learned counsel submitted that the error in filing the prescribed form under an incorrect clause was wholly inadvertent and occurred on account of the assessee being a newly established charitable trust navigating the amended registration framework. It was further submitted that the rejection has not been founded upon any adverse finding regarding the charitable objects of the trust or the genuineness of its activities. The sole basis of rejection is a procedural defect in invoking the appropriate statutory provision. It was, therefore, contended that the matter deserves to be restored to the file of the learned CIT

3 ITA No.4605/Mum/2026 Sarcoma Education Foundation (Exemption) so that the assessee’s application may be examined under the correct statutory provision.

4.

Having considered the rival submissions and the material available on record, we are of the considered opinion that the impugned order proceeds entirely on a technical premise arising out of an inadvertent error in filing the prescribed application. Such a procedural lapse, in our considered view, ought not to foreclose the examination of the assessee’s substantive entitlement for registration, particularly when no adverse finding has been recorded either regarding the charitable nature of its objects or the genuineness of its activities. The claim of the assessee deserves to be examined with reference to the appropriate statutory provision after affording it an effective opportunity to place all the relevant material on record.

5.

Accordingly, we set aside the impugned order and restore the matter to the file of the learned CIT (Exemption) with a direction to examine the assessee’s application afresh under the appropriate statutory provision in accordance with law. The assessee shall be at liberty to furnish all such documents, explanations and supporting material as may be required in support of its claim. Upon verification of the same and after affording a reasonable opportunity of hearing, the learned CIT (Exemption) shall pass a reasoned and speaking

4 ITA No.4605/Mum/2026 Sarcoma Education Foundation order and, if the assessee is found to satisfy the statutory conditions prescribed under the Act, grant registration in accordance with law.

6.

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

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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