R C F EX EMPLOYEES SOCIAL FORUM,CHEMBUR vs. DCIT (EXEMPTION), INCOME TAX APPELLATE TRIBUNAL

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER ITA No. 3661/Mum/2026 (Assessment Year: 2027-28) R C F Ex Employees DCIT (Exemptions) Social Forum 102, Exem. Circle-1, Vs. Mumbai Income Tax 7, Kedarnath, Dongre Appellate Tribunal, Park, Chembur, Mumbai-400 020 Mumbai-400 074 PAN/GIR No. AAAAR9028A (Applicant) (Respondent) Assessee by Shri Ketan Butala, Ld. AR Revenue by Shri Yogesh Kamat, Ld. DR Date of Hearing 23.06.2026 Date of Pronouncement 30.06.2026 आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM: This appeal has been preferred by the assessee against the order dated 28.01.2026 passed by the Commissioner of Income Tax (Exemptions), Mumbai [“CIT(Exemptions)”] under section 12AB of the Income-tax Act, 1961 [“the Act”], whereby the application filed by the assessee in Form No. 10AB seeking renewal of registration under section 12A(1)(ac)(ii) of the Act came to be rejected.

2 ITA No. 3661/Mum/2026 R C F Ex Employees Social Forum 2. The assessee has raised the following grounds of appeal: 1. On the facts and circumstances of the case and in law, the Commissioner of Income Tax Exemptions Mumbai has erred in rejecting the application filed by Appellant Trust under Sub clause (ii) of clause (ac) of sub-section (1) of section 12A. 2. The Appellant leave to add, alter, delete, modify or amend any of the above ground of appeal during the course of hearing of the appeal. 3. The brief facts are that the assessee trust filed an application in Form No. 10AB on 27.09.2025 seeking renewal of registration under section 12AB of the Act. During the course of processing the application, the learned CIT(Exemptions) observed that the application was incomplete and that the documents required under Rule 17A(2) had not been furnished. Accordingly, a notice dated 13.12.2025 was issued calling upon the assessee to furnish the complete set of documents. Since, according to the learned CIT(Exemptions), no response was received, a final opportunity was granted vide notice dated 05.01.2026 requiring the assessee to comply with the earlier notice and furnish the requisite documents.

3 ITA No. 3661/Mum/2026 R C F Ex Employees Social Forum held that he was unable to arrive at the requisite satisfaction regarding the statutory conditions. Consequently, vide order dated 28.01.2026, the application seeking renewal of registration under section 12AB was rejected on the ground of non- compliance with the notices issued. 5. The learned Authorised Representative (AR) submitted that the rejection of the application was solely on account of non- compliance with the notices and not because of any adverse finding regarding the objects of the trust or the genuineness of its charitable activities. It was submitted that the alleged non- compliance was neither deliberate nor intentional but occurred due to a bona fide communication gap arising from the change in the authorised person associated with the trust, because of which the notices issued by the Department were not brought to the notice of the management. 6. The learned AR further submitted that the assessee has throughout been carrying on genuine charitable activities and possesses all the records and documents necessary to establish its eligibility for registration under section 12AB. It was argued that had the notices come to the knowledge of the assessee, the information sought would have been duly furnished. It was therefore contended that the rejection was occasioned by circumstances beyond the control of the assessee and not on account of any lack of genuineness of its activities.

4 ITA No. 3661/Mum/2026 R C F Ex Employees Social Forum 7. The learned AR further invited our attention to the notice dated 13.12.2025 and submitted that the principal documents sought therein, namely the Registration Certificate, Trust Deed, Note on Activities and the earlier order granting registration under section 12AA, had already been uploaded along with Form No.10AB. According to him, the material necessary for examining the objects of the trust, genuineness of activities and eligibility for registration was already available on record. He submitted that the impugned order had been passed ex parte without granting an effective opportunity of hearing and without examining the application on merits. He, therefore, prayed that, in the interest of substantial justice, the matter be restored to the file of the learned CIT(Exemptions) for fresh adjudication after granting adequate opportunity of hearing. 8. The learned Departmental Representative relied upon the findings recorded by the learned CIT(Exemptions). However, he fairly did not raise any objection if the matter was restored to the file of the learned CIT(Exemptions) for fresh adjudication after providing adequate opportunity to the assessee. 9. We have carefully considered the rival submissions and perused the material available on record. 10. The impugned order reveals that the application has been rejected solely on the ground that the assessee did not comply with the notices dated 13.12.2025 and 05.01.2026. The learned CIT(Exemptions) has not recorded any finding adverse to the

5 ITA No. 3661/Mum/2026 R C F Ex Employees Social Forum objects of the trust or to the genuineness of its charitable activities. The rejection has thus been founded exclusively upon the alleged non-compliance with the notices. 11. The explanation offered by the assessee is that the notices could not be responded to because of a bona fide communication gap resulting from the change in the authorised person of the trust. It has also been specifically contended that the principal documents required for examining the application had already been furnished along with Form No.10AB and that the assessee is in possession of all the relevant records required for satisfying the conditions prescribed under section 12AB of the Act. 12. Having regard to the facts and circumstances of the case, we are of the considered view that the ends of substantial justice would be met if one more effective opportunity is granted to the assessee. The issue involved relates to renewal of registration under section 12AB, which has recurring consequences. The application ought to be examined on its own merits after considering all the relevant documents and explanations which the assessee proposes to furnish. Since the learned Departmental Representative has also not objected to restoration of the matter, we deem it appropriate to set aside the impugned order. 13. Accordingly, the order dated 28.01.2026 passed by the learned CIT(Exemptions), Mumbai under section 12AB of the Act is set aside and the matter is restored to his file with a direction to afford the assessee a reasonable and effective opportunity of

6 ITA No. 3661/Mum/2026 R C F Ex Employees Social Forum being heard, permit it to furnish all the relevant documents and explanations in support of its application, and thereafter pass a fresh speaking order in accordance with law after examining the application on its own merits. The assessee is also directed to extend full cooperation and comply with all the requirements that may be called for during the fresh proceedings. We clarify that we have not expressed any opinion on the merits of the claim for registration under section 12AB, and all issues are left open for adjudication by the learned CIT(Exemptions).

Order pronounced in the open court on 30.06.2026.

Sd/- Sd/- (SAKTIJIT DEY) (MAKARAND VASANT MAHADEOKAR) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 30/06/2026 Dhananjay, Sr.PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलाथी / The Appellant 1. प्रत्यथी / The Respondent. 2. 3. संबंधधत आयकर आयुक्त / The CIT(A) आयकर आयुक्त(अपील) / Concerned CIT 4. धिभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, मुम्बई / DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, सत्याधपत प्रधत //True Copy// 1. उि/सहायक िंजीकार ( Asst. Registrar) आयकर अिीिीय अतिकरण, मुम्बई / ITAT, Mumbai