SANA MOHAMMAD HUSEIN MALAGI CHARITABLE FOUNDATION,HUBBALLI vs. COMMISSIONER OF INCOME TAX, EXEMPTIONS, BANGALORE

The assessee has raised following grounds of appeal in ITA No.43/Bang/2026:

Now the brief facts of the case are that the assessee trust is constituted by the deed of trust dated 12.11.2020 for the Charitable purposes. The assessee trust was granted provisional registration under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act vide Unique Registration No. (URN) : ABBTS0207RE20211 on 3.11.2021 effective from AY 2022-23 to AY 2024-25. The assessee trust is also granted provisional approval under clause (iv) of 1st proviso to sub-section (5) of section 80G of the Act vide URN : ABBTS 0207RF20227 effective from 10.3.2022 to AY 2024-25. Thereafter, the assessee trust applied for the final registration in Form No.10AB on 21.3.2025 for registration u/s 12AB of the Act and on 20.5.2025 for approval u/s 80G(5) of the Act. On receipt of application, the assessee was granted opportunity of being heard by the ld. CIT(Exemption) by issuing notice dated 7.8.2025 and SCN dated 29.9.2025, however, assessee had made only partial compliances. Upon verification verification of the submissions, the ld. CIT(Exemptions) observed the following shortcomings as below: a) Upon perusal of the trust-deed/MOA, mandatory clauses are missing and the assessee has not submitted an affidavit for the missing mandatory clauses. b) The assessee has filed present application in Form 10AB belatedly which is not accompanied with an application for condonation of delay explaining reasons for the delay. c) The assessee has not submitted a copy of provisional registration in Form 10AC. d) The assessee has submitted a detailed note on activities of trust but has not attached pictures to prove genuineness of its stated objects. e) The assessee has not submitted sample invoices/bills/vouchers as the proof of expenditure to prove

Aggrieved by the aforesaid rejection orders, the assessee has filed the present appeals before this Tribunal in ITA Nos.43 & 44/Bang/2025.

Before us, the ld. A.R. of the assessee vehemently submitted that the Managing Trustee as well as the founder of the Trust is a senior citizen aged 88 years. Further, the ld. A.R. submitted that while passing the impugned order dated 30.9.2025, the ld. CIT(Exemption) had erroneously recorded that none appeared on behalf of the assessee and also noted that the required documents were not submitted, whereas the assessee on 29.9.2025 filed a detailed reply by uploading the formal application for condonation of delay explaining the reasons along with copy of provisional registration in Form No.10AC as well as photographs evidencing charitable activities carried out in furtherance of its stated objects. Lastly, the ld. A.R. of the assessee vehemently submitted that the ld. CIT(Exemptions) cancelled the registration without considering the relevant details filed on 29.9.2025, which is a gross violation of principles of natural justice and accordingly prayed that one more

The ld. D.R. on the other hand, relied on the order of ld. CIT(Exemptions).

We have heard the rival submissions and perused the materials available on record. On perusal of the order of ld. CIT(Exemptions), we noticed that the ld. CIT (Exemptions) had categorically observed that none appeared on behalf of the assessee trust nor the required documents were submitted in response to show cause notice dated 29.9.2025 and accordingly concluded that since the assessee has not furnished the relevant information/documents and failed to substantiate the genuineness of its activity, the conditions prescribed u/s 12AB of the Act are not satisfied.

Before us, the ld. A.R. of the assessee drew our attention to e- proceedings response acknowledgement no.880975791290925 as well as no.881115221290925 and vehemently submitted that all the details required for registration as well as approval were filed before the ld. CIT (Exemptions) and accordingly requested that one more opportunity may be granted to appear before the ld. CIT (Exemptions) to substantiate its claim. This being so, considering the response acknowledgement filed before us and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue of registration u/s 12AB of the Act as well as approval u/s 80G of the Act to the file of ld. CIT (Exemptions), Bengaluru to decide afresh in accordance with law, after taking into consideration, the detailed reply filed on 29.9.2025. The ld. CIT (Exemptions) may also call for any other further documents/information/records in order to satisfy himself about conditions for granting registration/approval.

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes.