ANIL THOMAS FELLOWSHIP FOUNDATION ,MUMBAI vs. CIT(EXEMPTION), MUMBAI

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ITA 552/MUM/2026Status: DisposedITAT Mumbai28 April 2026AY 2026-275 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the non-compliance was not a legally tenable excuse, procedural lapses should not defeat substantive rights. Therefore, the assessee was granted one final opportunity to furnish the required details, subject to payment of costs.

What were the facts?

The assessee's applications for registration under Sections 12AB and 80G were rejected by the CIT (Exemptions) due to non-compliance with notices seeking information and documents. The assessee attributed this non-compliance to their consultant's preoccupation with other statutory filings.

What were the issues?

Whether non-compliance with notices due to consultant's preoccupation is a valid reason for rejecting registration applications. Whether procedural lapses should lead to denial of substantive rights.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “A” MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI ANIKESH BENERJEE

For Appellant: Shri Nilesh Karia, Shri Rajesh Kumar Yadav, (CIT. DR)
Pronounced: 28.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI

BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI ANIKESH BENERJEE (JUDICIAL MEMBER)

ITA Nos. 551 and 552/MUM/2026 Assessment Year: 2026-27

Anilthomas Fellowship Foundation, CIT (Exemption), Mumbai, Room 11, Silver Strip Chs Ltd V Akola Pipline, No.601, 6th Floor, Cumballa Hill, Vs. Nr Hanuman Mandir, Santa Cruz (East), MTNL Building, Pedder Road, Dr Mumbai – 400055, Maharashtra. Gopalrao, Deshmukh Marg, Cumballa Hill, Mumbai – 400026. PAN NO. AAXCA 2027 M APPELLANT RESPONDENT

Assessee by : Shri Nilesh Karia : Shri Rajesh Kumar Yadav, (CIT. DR) Department by : 21.04.2026 Date of Hearing Date of pronouncement : 28.04.2026 ORDER PER OM PRAKASH KANT, AM

The appeals preferred by the assessee arise from two separate but contemporaneous orders, both dated 12.11.2025, passed by the learned Commissioner of Income Tax (Exemptions), Mumbai, whereby the applications of the assessee for grant of registration under Sections 12AB and 80G of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) respectively came to be rejected.

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2.

At the outset, learned counsel for the assessee invited our At the outset, learned counsel for the assessee invited our At the outset, learned counsel for the assessee invited our attention to the grounds of appeal and submitted that the rejection attention to the grounds of appeal and submitted that the rejection attention to the grounds of appeal and submitted that the rejection of the applications for provisional registration under Section 12AB the applications for provisional registration under Section 12AB the applications for provisional registration under Section 12AB and approval under Section 80G was occasioned solely on account and approval under Section 80G was occasioned solely on account and approval under Section 80G was occasioned solely on account of non-compliance with the notices issued by the learned compliance with the notices issued by the learned compliance with the notices issued by the learned Commissioner, calling for requisite information and supporting Commissioner, calling for requisite information and supporting Commissioner, calling for requisite information and supporting documents. It was contended that such non ts. It was contended that such non-compliance was compliance was neither deliberate nor contumacious, but was attributable to the neither deliberate nor contumacious, but was attributable to the neither deliberate nor contumacious, but was attributable to the preoccupation of the assessee’s consultant with statutory timelines preoccupation of the assessee’s consultant with statutory timelines preoccupation of the assessee’s consultant with statutory timelines relating to audit report and return of income filings. A prayer was relating to audit report and return of income filings. A prayer was relating to audit report and return of income filings. A prayer was accordingly made for affording one further opportunity to the dingly made for affording one further opportunity to the dingly made for affording one further opportunity to the assessee to furnish the requisite details and substantiate its claim assessee to furnish the requisite details and substantiate its claim assessee to furnish the requisite details and substantiate its claim for registration.

3.

We have considered the rival submissions and perused the We have considered the rival submissions and perused the We have considered the rival submissions and perused the material available on record. It is an admitted position that the material available on record. It is an admitted posi material available on record. It is an admitted posi learned Commissioner of Income Tax (Exemptions) has passed learned Commissioner of Income Tax (Exemptions) has passed learned Commissioner of Income Tax (Exemptions) has passed substantially identical orders in both proceedings, rejecting the substantially identical orders in both proceedings, rejecting the substantially identical orders in both proceedings, rejecting the applications on the ground of persistent non applications on the ground of persistent non-compliance. compliance. For ready reference , the relevant extract from the order pa , the relevant extract from the order passed under Section ssed under Section 12AB is reproduced below 12AB is reproduced below:

“3. On verification of the application in Form 10AB filed by the “3. On verification of the application in Form 10AB filed by the “3. On verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and all applicant, it was found that the application was not complete, and all applicant, it was found that the application was not complete, and all the documents required to be accompanying the application were not the documents required to be accompanying the application were not the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the applican furnished. Hence, a notice was issued to the applicant vide DIN & t vide DIN & Notice No. ITBA/EXM/F/EXM43/ Notice No. ITBA/EXM/F/EXM43/ 2025-26/1080254213(1) 2025 26/1080254213(1) dated dated 02.09.2025 requesting the applicant to furnish the complete set of 02.09.2025 requesting the applicant to furnish the complete set of 02.09.2025 requesting the applicant to furnish the complete set of documents mentioned in Rule 17A(2). In response to the same, the documents mentioned in Rule 17A(2). In response to the same, the documents mentioned in Rule 17A(2). In response to the same, the

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applicant has made adjournment request on 30.09.2025 through applicant has made adjournment request on 30.09.2025 t applicant has made adjournment request on 30.09.2025 t ITBA/e-filing portal. Adjournment request of the applicant has been filing portal. Adjournment request of the applicant has been filing portal. Adjournment request of the applicant has been accepted and provided further opportunity to submit details/documents accepted and provided further opportunity to submit details/documents accepted and provided further opportunity to submit details/documents vide DIN & Notice No. vide DIN & Notice No. ITBA/EXM/F/EXM 43/ 2025-26/1081730146(1) 26/1081730146(1) dated 14.10.2025. However, no response was dated 14.10.2025. However, no response was received in this regard. received in this regard. Again, a final opportunity was provided vide DIN & Notice No. Again, a final opportunity was provided vide DIN & Notice No. Again, a final opportunity was provided vide DIN & Notice No. ITBA/EXM/F/EXM43/2025 ITBA/EXM/F/EXM43/2025-26/1081966067(1) dated 24.10.2025 to 26/1081966067(1) dated 24.10.2025 to comply with the above mentioned notice. However, the applicant has comply with the above mentioned notice. However, the applicant has comply with the above mentioned notice. However, the applicant has failed to respond to the above mentioned no failed to respond to the above mentioned notices within the stipulated tices within the stipulated date and time. 4. Since registration under section 12AB is to be granted in terms of the 4. Since registration under section 12AB is to be granted in terms of the 4. Since registration under section 12AB is to be granted in terms of the provisions of section 12AB(1)(b) of the Act after being satisfied about the provisions of section 12AB(1)(b) of the Act after being satisfied about the provisions of section 12AB(1)(b) of the Act after being satisfied about the objects of the trust or institution, the genuineness of activities, and the objects of the trust or institution, the genuineness of activit objects of the trust or institution, the genuineness of activit compliance of any other law for the time being in force as are material compliance of any other law for the time being in force as are material compliance of any other law for the time being in force as are material for the purposes of achieving its objects. In the absence of necessary for the purposes of achieving its objects. In the absence of necessary for the purposes of achieving its objects. In the absence of necessary compliance by the Applicant, the undersigned is unable to arrive at a compliance by the Applicant, the undersigned is unable to arrive at a compliance by the Applicant, the undersigned is unable to arrive at a satisfactory conclusion on the satisfactory conclusion on these parameters and is left with no other se parameters and is left with no other option but to reject the application seeking registration under section option but to reject the application seeking registration under section option but to reject the application seeking registration under section 12AB of the Act. However, the applicant is at liberty to pursue the 12AB of the Act. However, the applicant is at liberty to pursue the 12AB of the Act. However, the applicant is at liberty to pursue the remedies available in Statute, without any prejudice. remedies available in Statute, without any prejudice. 5. In conclusion, this 5. In conclusion, this application for grant of registration stands application for grant of registration stands rejected on the grounds of non rejected on the grounds of non-compliance of the notices compliance of the notices issued by this office.” 4. From the record, it is manifest that more than one opportunity From the record, it is manifest that more than one opportunity From the record, it is manifest that more than one opportunity was afforded to the assessee to cure the defects in its application was afforded to the assessee to cure the defects in its applica was afforded to the assessee to cure the defects in its applica and to furnish the requisite details as mandated under Rule 17A(2) and to furnish the requisite details as mandated under Rule 17A(2) and to furnish the requisite details as mandated under Rule 17A(2) of the Income-tax Rules. Despite such opportunities, the assessee tax Rules. Despite such opportunities, the assessee tax Rules. Despite such opportunities, the assessee failed to comply with the statutory notices within the prescribed failed to comply with the statutory notices within the prescribed failed to comply with the statutory notices within the prescribed time. In these circumstances, the learned Commissioner cannot be time. In these circumstances, the learned Commission time. In these circumstances, the learned Commission faulted for proceeding to dispose of the applications on the basis of faulted for proceeding to dispose of the applications on the basis of faulted for proceeding to dispose of the applications on the basis of the material available on record and for declining registration in the the material available on record and for declining registration in the the material available on record and for declining registration in the absence of necessary satisfaction as contemplated under Section absence of necessary satisfaction as contemplated under Section absence of necessary satisfaction as contemplated under Section 12AB(1)(b) of the Act. 12AB(1)(b) of the Act.

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5.

The explanation now sought to be advanced before us, tion now sought to be advanced before us, tion now sought to be advanced before us, attributing such non attributing such non-compliance to the preoccupation of the compliance to the preoccupation of the consultant with other statutory filings, does not constitute a legally consultant with other statutory filings, does not constitute a legally consultant with other statutory filings, does not constitute a legally tenable or sufficient cause. Proceedings before statutory authorities tenable or sufficient cause. Proceedings before statutory authorities tenable or sufficient cause. Proceedings before statutory authorities demand due diligence and adherence to prescribed timelines, and ligence and adherence to prescribed timelines, and ligence and adherence to prescribed timelines, and administrative inconvenience of a representative cannot ordinarily administrative inconvenience of a representative cannot ordinarily administrative inconvenience of a representative cannot ordinarily absolve an assessee of its obligations. absolve an assessee of its obligations. 5.1 Nevertheless, it is equally well Nevertheless, it is equally well-settled that procedural lapses settled that procedural lapses should not, in appropriate ca should not, in appropriate cases, defeat substantive rights, ses, defeat substantive rights, particularly particularly particularly where where where the the the consequence consequence is denial consequence is is denial denial of statutory of of statutory statutory registration affecting the charitable character of the assessee. registration affecting the charitable character of the assessee. registration affecting the charitable character of the assessee. Having regard to the totality of the facts and in the interest of Having regard to the totality of the facts and in the interest of Having regard to the totality of the facts and in the interest of substantial justice, we deem it app substantial justice, we deem it appropriate to afford the assessee ropriate to afford the assessee one final opportunity to place on record all requisite documents and one final opportunity to place on record all requisite documents and one final opportunity to place on record all requisite documents and explanations in support of its applications. explanations in support of its applications.

5.2 However, such indulgence cannot be granted unconditionally. However, such indulgence cannot be granted unconditionally. However, such indulgence cannot be granted unconditionally. Accordingly, the grant of this opportunity is Accordingly, the grant of this opportunity is made subject to made subject to payment of costs quantified at Rs.5,000/ payment of costs quantified at Rs.5,000/- in each appeal, which the in each appeal, which the assessee shall deposit with the Prime Minister’s Relief Fund within assessee shall deposit with the Prime Minister’s Relief Fund within assessee shall deposit with the Prime Minister’s Relief Fund within a period of 30 days from the date of receipt of this order. a period of 30 days from the date of receipt of this order. a period of 30 days from the date of receipt of this order.

5.3 In view of the foregoing, the impugned In view of the foregoing, the impugned orders of the learned orders of the learned Commissioner of Income Tax (Exemptions) in both appeals are set Commissioner of Income Tax (Exemptions) in both appeals are set Commissioner of Income Tax (Exemptions) in both appeals are set aside, and the matters are restored to his file with a direction to aside, and the matters are restored to his file with a direction to aside, and the matters are restored to his file with a direction to

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afford the assessee one effective opportunity of being heard, to afford the assessee one effective opportunity of being heard, to afford the assessee one effective opportunity of being heard, to consider the materials that may be p consider the materials that may be placed on record, and thereafter laced on record, and thereafter to pass a reasoned order in accordance with law. to pass a reasoned order in accordance with law.

6.

In the result, In the result, the appeals of the assessee are allowed for of the assessee are allowed for statistical purposes.

Order pronounced in the open Court on ounced in the open Court on 28/04/2026. /04/2026.

Sd/- Sd/ Sd/- (ANIKESH BENERJEE ANIKESH BENERJEE) (OM PRAKASH OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 28/04/2026 M. Ranganath Vittal , Sr. P.S. M. Ranganath Vittal , Sr. P.S. Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai

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