AKHIL BHARATIYA KUTCH JAIN GURJAR CHARITABLE TRUST,MUMBAI vs. CIT(E) - MUMBAI, MUMBAI

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ITA 2585/MUM/2026Status: DisposedITAT Mumbai20 May 2026AY 2026-273 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal restored the matter back to the CIT(Exemption) for a fresh decision. This was done to uphold the principles of natural justice, as the assessee claimed non-receipt of the notice.

What were the facts?

The assessee's application for approval under section 12AB was rejected by the CIT(Exemption) because the assessee failed to respond to a show cause notice. The assessee claimed they never received the notice.

What were the issues?

Whether the rejection of the application for approval under section 12AB was justified without ensuring proper service of notice to the assessee.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

PER PAWAN SINGH, JUDICIAL MEMBER:

1.

This appeal by assessee is directed against the order of ld. CIT(E) dated

25.02.2026 in rejecting the application for approval under section 12AB.

2.

Rival submissions of both the parties have been heard and record perused. The

ld. Authorised Representative (AR) of the assessee fairly submits that notice

issued by ld. CIT(E) is not received by assessee either in physical mode or by

way of email. Thus, no compliance could be made. The matter may be restored

back to ld. CIT(E). He undertakes on behalf of the assessee to make compliance

of fresh notice by ld. CIT(E).

AkhilBharatiya Kutch Jain Gurjar Charitable Trust ITA No. 2585/M/2026 (AY: 2026-27)

3.

On the other hand, ld. Sr. DR for the revenue submits that he has no objection if

the matter is restored back to the file of ld. CIT(E).

4.

We have considered the rival submissions of both the parties. We find that the

application of assessee for registration under section 12AB was rejected for the

want of submissions by assessee. We find that application of assessee was

dismissed for the sole reason that no response was made by the assessee to the

show cause notice issued by ld CIT(E). The ld CIT(E) has passed the order of

rejection in ex-parte order. Before us, the ld AR of the assessee vehemently

submitted that notice of hearing was not received. Thus, keeping in view of

principal of natural justice, the matter is restored back to the file of ld CIT(E) to

pass the order afresh in accordance with law. Needless to direct that before

passing the order of ld. CIT(E) shall allow fair and reasonable opportunity to the

assessee. The assessee is also directed to provide necessary detail. In the result,

grounds of appeal of assessee are allowed for statistical purpose.

5.

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

Order was pronounced in the open Court on20/05/2026 at the time of hearing.

/- S/- /- Sd/- Sd/- GIRISH AGRAWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Dated: 20/05/2026 Biswajit

AkhilBharatiya Kutch Jain Gurjar Charitable Trust ITA No. 2585/M/2026 (AY: 2026-27)

Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. By Order

Assistant Registrar / DDO ITAT, Mumbai

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