SHREE KUTCH GURJAR JAIN KALYAN TRUST,MUMBAI vs. CIT(E) - MUMBAI, MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by the assessee are directed against separate orders of

ld. Commissioner of Income Tax (Exemption), Mumbai, [for short “CIT(E)”]

both dated 25.02.2026, for the assessment year 2026-27. In ITA No.

2626/Mum/2026, the assessee has challenged the order of ld CIT(E) in

rejection of an application for approval of funds under Section 80G(5) and

in ITA No. 2627/Mum/2026, the assessee has challenged the rejection of

the application for registration under Section 12AB. In both the appeals,

facts are common, therefore, both the appeals were clubbed heard

together and are decided by the way of common order. For appreciation of the facts, fact in ITA No. 2627/Mum/2026 (A.Y. 2026-27) is stated as a lead

case.

perused. The Learned Authorised Representative (‘Ld. AR’) of the assessee

submits that, the assessee is a charitable trust and registered with Charity

Commissioner, Mumbai. The assessee is having a provisional registration

under section 12AB valid up to A.Y. 2026-27. The assessee filed an

application for regular registration under Section 12AB in prescribed form.

The assessee also furnished certain details. However, in order to examine

object and activities of the assessee-trust, the Ld. CIT(E) issued show

cause notice vide notice dated 31.01.2026. However, the assessee could

not furnish such details. The assessee is a small trust and trustees are not

well-versed with the use of computer and electronic gadgets and not in a

habit for not checking their emails on regular basis, which resulted into

non-compliance. The assessee has filed an affidavit of one of the trustees.

The Ld. AR submits that, one more opportunity may be allowed to the

assessee to contest the case on merits. He undertakes on behalf of the

assessee to be more vigilant in future.

Ld. AR of the assessee submitted that, once the application for registration

under Section 12AB was rejected, the application for approval under

Section 80G was also rejected. The Ld. AR of the assessee submits that this

appeal may also be restored back to the file of Ld. CIT(E) for considering the application a fresh after the decision in application for registration

under Section 12AB.

Departmental Representative (CIT-DR) for the revenue submits that, the

assessee was allowed reasonable opportunity by the Ld.CIT(E). In this

case, the Bench is of the view, that the assessee deserves one more

opportunity, the assessee may be directed to make the compliance in time.

through the orders of the lower authorities carefully. We find that the

application of the assessee for registration under Section 12AB was

rejected for the want of compliance. Before us the Ld. AR of the assessee

vehemently prayed that he undertake on behalf of the assessee to be more

vigilant in making timely compliance, if one more opportunity is allowed to

substantiate object and activities of the assessee. Considering the facts of

the case that the application of the assessee was rejected due to non-

compliance. Therefore, keeping in view of the principle of natural justice,

the matter is restored back to the file of the Ld.CIT(E) with the direction to

the assessee to furnish its submission before the Ld.CIT(E) to substantiate

the object and activities of the assessee.The Ld. CIT(E) is directed to

reconsider the matter and pass the orderafresh and in accordance with law.

Needless, to direct that, before passing the order a fresh, the Ld. CIT(E)

shall allow a fair and reasonable opportunity to the assessee. In the result, grounds of the appeal raised by the assessee in ITA No. 2627/Mum/2026

are allowed for statistical purposes.

registration under Section 12AB in ITA No. 2627/Mum/2026, therefore, the

appeal in ITA No. 2626/Mum/2026 is also restored to the file of the

Ld.CIT(E), with the direction to reconsider the application afresh and pass

order after taking decision in application for registration under section

12AB.

Order pronounced in open Court on 30.06.2026

Sd Sd/- /- Sd/- Sd/- VIKRAM SINGH YADAV PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Dated: 30/06/2026 Aditi Pandare, PS Aditi Pandare, PS Aditi Pandare, PS Aditi Pandare, PS 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 ITAT, Mumbai