DAWAT E ISLAMI HIND,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI

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ITA 4455/MUM/2026Status: DisposedITAT Bangalore20 May 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) was obligated to consider the documents filed by the assessee. The matter was remitted back to the CIT(Exemptions) for fresh adjudication after considering the submitted documents and providing an opportunity of hearing.

What were the facts?

The assessee's application for renewal of registration under Section 12AB was rejected by the CIT(Exemptions) for not furnishing complete documents and verifiable evidence. The assessee contended that voluminous documents were submitted.

What were the issues?

Whether the rejection of registration renewal under Section 12AB was justified without considering all submitted documents and providing a proper hearing. Whether the approval under Section 80G(5) also requires re-consideration.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(ii),Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH MUMBAI

Before: HON’BLE SHRI SANDEEP GOSAIN & HON’BLE SHRI BIJAYANANDA PRUSETH

For Appellant: Shri. Dharmendra Kumar (Virtually)
For Respondent: Shri. Umashankar Prasad (CIT DR) &, Shri. Annavaram Kosuri, SR. AR
Hearing: 18.05.2026Pronounced: 20.05.2026

आदेश / ORDER PER SANDEEP GOSAIN, JM: The present appeals have been filed by the assessee challenging the impugned order dated 30/03/2026 passed u/s 12AB/(I)(b)(ii) of the Income Tax Act, 1961 (‘the Act’),

2 ITA No. 4455 & 4456/Mum/2026

by the Ld. CIT (Exemptions), Mumbai for the assessment years 2026-27.

2.

Now we first take up the ITA No. 4455/Mum/2026 for A.Y. 2026-27, raising following grounds:

“Ground No. 01 i) That Ld. CIT(E) erred to mention that application in Form 10AB was not complete and all the documents required to be accompanying such application were not furnished. Whereas, the appellant furnished all the required details, explanations and documents along with application in Form 10AB and documentary evidences demonstrating the actual activities undertaken and corroborative evidences to establish that the expenditures were incurred wholly and exclusively towards its religious cum charitable objects in compliance of notice dated 14-11-2025. Hence rejection of renewal of registration under section 12AB of the Act is illegal, against the facts and without jurisdiction. Ground No. 02 2. That the Ld. CIT(E) failed to afford opportunity of being heard to the appellant by way of issuance of show-cause notice before rejecting the application of appellant for renewal of registration under section 12AB of the Act, hence rejection order in Form 10AD passed by Ld. CIT(E) is against the law of natural justice, illegal and without jurisdiction.”

2.

At the very outset, we notice that the application in Form 10AB u/s 12A(1)(ac)(ii) filed by the assessee for seeking renewal of registration u/s. 12AB of the Act was rejected by the Ld.CIT(Exemptions) on the grounds that the assessee had not filed any primary or verifiable evidences and thus in the absence of the proper clarifications or

3 ITA No. 4455 & 4456/Mum/2026

documents the genuineness of the activities of the applicant trust remains unsubstantiated.

3.

On the contrary, the Ld. AR drawn our attention to the paper book and submitted that voluminous documents were filed along with the replies before the Ld. CIT (Exemptions) which are at paper book page no. 1 to 1147. Thus, considering the said facts, we are of the view that the Ld.CIT (Exemptions) was under statutory obligation to consider the documents placed on record by the assessee.

4.

Be that as it may considering the facts of the present case, Bench is of the view that the matter requires to be sent back to the file of the Ld.CIT (Exemptions) for passing afresh order by considering the documents filed and relied upon by the assessee. Consequently, we set aside the impugned order and remit the matter back to the file of the Ld. CIT (Exemptions) to decide the same afresh by considering the documents, being relied upon by the assessee. Needless to mention after providing adequate opportunity of hearing to the assessee.

5.

Before parting, we make it clear that our decision to restore the matter to the file of the Ld. CIT (Exemptions) shall in no way be construed as expressing any opinion on the merits of the dispute, which shall be adjudicated independently by the Ld. CIT (Exemptions) in accordance with law.

4 ITA No. 4455 & 4456/Mum/2026

Needless to mention, the Ld. CIT (Exemptions) shall 7. provide adequate opportunity of hearing to the assessee. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings.

ITA No. 4456/Mum/2026 (AY 2026-27) 8. Since we have already remitted the matter relating to registration u/s. 12AB back to the file of the Ld. CIT(Exemptions) for fresh consideration, we are of the considered opinion that the issue of approval u/s. 80G(5) of the Act also requires re-consideration. Accordingly, we remit this matter as well to the file of the Ld. CIT(E) for fresh adjudication, after giving due opportunity to the assessee to substantiate its claim. The assessee is also directed to comply with all the notices issued by the Ld. CIT(Exemptions) and furnish all relevant details for its fresh consideration.

9.

In the result, all the appeals filed by the Assessee stands allowed for statistical purposes.

Order pronounced in the open court on 20.05.2026

Sd/- Sd/- (BIJAYANANDA PRUSETH) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER

5 ITA No. 4455 & 4456/Mum/2026

Mumbai, Dated 20/05/2026 Aditi Pandare, PS आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent. 2. संबंिधत आयकर आयु� / The CIT(A) 3. आयकर आयु�(अपील) / Concerned CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण,मु�बई/ DR, ITAT, Mumbai 5. 6. गाड� फाईल / Guard file. आदेशानुसार/BY ORDER, स�ािपत �ित //True Copy//

उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु�बई / ITAT, Mumbai

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