SHARMA SHIKSHAN SANSTHA,MUMBAI vs. COMMISSIONER OF INCOME TAX EXEMPTION, MUMBAI

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ITA 7432/MUM/2025Status: DisposedITAT Mumbai30 April 2026AY 2025-20263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's contention that the delay condonation application was not disposed of before the rejection order was passed. Therefore, the impugned order was set aside.

What were the facts?

The assessee filed an application for re-registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The application was rejected by the CIT(E) on the ground of being belated, without adjudicating on the assessee's application for condonation of delay.

What were the issues?

Whether the CIT(E) erred in rejecting the re-registration application without considering the delay condonation application and adhering to principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

[ Per Rahul Chaudhary, Judicial Member:

1.

The present appeal preferred by the Assessee is directed against the order, dated 18/09/2025, passed by the Learned Commissioner of Income Tax (Exemption), Mumbai [hereinafter referred to as the ‘CIT(E)’] whereby the application filed by the Assessee in Form 10AB for re-registration w.e.f Assessment Year 2025-2026 under Section 12(A)(1)(ac)(iii) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] on 20-02-2025 was rejected.

2.

The Assessee has raised the following grounds of appeal: ” 1) The Asssessee had filed an application for renewal of 12AA by filing Form NO 10AB on 20.02.2025. The Honourable Commissioner had without giving sufficient time to explain the case has rejected the application on technical ground. The assessee had filed condonation delay request on 6th September 2025 for earlier years in which though Assessment Year 2025-2026

80-G was granted and for lapse of 12A application condonation request was filed which was also not taken into account before passing order on 18.09.2025. the principle of Natural Justice was not done. The assessee prays that Registration under Section 12A(1)(ac)(iii) of the income tax be granted to the assesee.

2) The assessee reserves the right to add amend and alter any ground of appeal.”

3.

On hearing both the sides it emerges that the application filed by the Assessee on 20-02-2025 was in Form 10AB for re-registration w.e.f Assessment Year 2025-2026 under Section 12(A)(1)(ac)(iii) of the Act was rejected by the Learned CIT(E), inter alia, on the ground that the same was filed belatedly. The Learned Authorised Representative for the Assessee submitted that the Assessee had filed application seeking condonation of delay. However, the impugned order got to be passed before the disposal of the application. Thus, the Learned Authorised Representative for the Assessee sought setting aside of the impugned order. It was further submitted that the Assessee be granted benefit of Circular No. 01 of 2026, dated 23-03-2026 (F.No. 3001173/26/2026- ITA-I) issued by the Central Board of Direct Taxes and delay in filing the application be condoned. Per Contra, the Learned Departmental Representative supported the order passed by the Learned CIT(E).

4.

After thoughtful consideration to the rival submission and on perusal of record, we find some merit in the contention advanced on behalf of the Assessee. The Circular No. issued by CBDT empowers the Learned CIT(E) to entertain and allow application seeking condonation of delay. Since the application seeking condonation for delay filed by the Assessee was not adjudicated upon, before the impugned order got to be passed, we set-aside the impugned order with the direction to learned CIT(E) to adjudicate the application seeking condonation of delay filed by the Assessee as per law after taking into consideration the aforesaid Circular cited by the Authorised Representative for the Assessee and thereafter, adjudicate the application filed by the 2 Assessment Year 2025-2026

Assessee afresh as per law. It is clarified that the Assessee would be granted a reasonable opportunity of being heard. Thus grounds raised by the Assessee are allowed for statistical purposes without returning any finding on merits.

5.

In result, the present appeal is allowed for statistical purposes.

Order pronounced on 30.04.2026. (Om Prakash Kant) Judicial Member

मुंबई Mumbai; िदनांक Dated : 30.04.2026 Aditi Pandare, PS

आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : अपीलाथ" / The Appellant

1.

""थ" / The Respondent. 2. आयकर आयु"/ The CIT

3.

"धान आयकर आयु" / Pr.CIT 4. िवभागीय "ितिनिध ,आयकर अपीलीय अिधकरण ,मुंबई / DR, ITAT,

5.

Mumbai गाड" फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, स"ािपत "ित //// उप/सहायक पंजीकार /(Dy./Asstt.

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