VIMAL FOUNDATION,VILE PARLE EAST , MUMBAI vs. COMMISSIONER OF INCOME TAX - EXEMPTIONS, CUMBLLA HILL, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER 1. ITA No. 3979/Mum/2026 (Assessment Year: 2026-27) 2. ITA No. 3980/Mum/2026 (Assessment Year: 2026-27) Vimal Foundation Commissioner Of Income Tax - Exemptions C-310 Shyamkamal , Vs. Agrawal Marke, Vile Room No 601,6th Floor, Parle East , Mumbai Cumballa Hill MTNL TE 400057, Building, Pedder Road, Dr Maharashtra, Gopalrao Deshmukh Marg, Mumbai-400 026 PAN/GIR No. AACTV4843N (Applicant) (Respondent) Assessee by Shri Tarun Ghia (virtually appered), Ld. AR Revenue by Shri Yogesh Kamat, Ld. DR Date of Hearing 25.06.2026 Date of Pronouncement 30.06.2026 आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM: These two appeals preferred by the assessee arise from two separate orders, both dated 25.02.2026, passed by the learned Commissioner of Income Tax (Exemptions), Mumbai [“CIT(E)”].

2 ITA No. 3979 & 3980/Mum/2026 Vimal Foundation ITA No. 3980/Mum/2026 is directed against the order passed in Form No. 10AD under section 12AB(1)(b)(ii) of the Income-tax Act, 1961 [“the Act”], rejecting the assessee’s application for renewal of registration under section 12AB of the Act. ITA No. 3979/Mum/2026 is directed against the order passed in Form No. 10AD rejecting the assessee’s application for renewal of approval under clause (ii) of the first proviso to section 80G(5) of the Act. Since the issues involved in both the appeals are interconnected and arise out of the same set of facts, the appeals were heard together and are being disposed of by this consolidated order.

Grounds of appeal in ITA No. 3980/Mum/2026 1. On facts and circumstances of the case and in law, learned Commissioner of Income Tax – Exemptions has grossly erred in passing a rejection order dated 25.02.2026 disallowing renewal of registration under section 12AB of the appellant trust on an erroneous reasoning that the appellant had not complied with notice dated 24. 01.2026 by which learned CIT-E had directed the appellant to submit various papers and documents and information. 2. On facts and circumstances, the said notice had been sent to the appellant trust by email but at the appellant trust the person who is in charge of the concerned tasks was on leave from 21.01.2026 to 16.02.2026 and the email was inadvertently missed out. 3. While the application for registration under section 12A was submitted by the appellant on 16.09.2025, to ensure timely renewal of its registration, the learned CIT-E acted upon the same only on 24.01.2026 and thereafter only after issuing one notice, took a harsh step of rejection of the renewal application for registration; Ld CIT-E

3 ITA No. 3979 & 3980/Mum/2026 Vimal Foundation could have issued a second notice before passing a rejection. Appellant craves for one more opportunity so that the appellant can comply with the requirements of the renewal application. 4. Non continuation of the registration under section 12AB would severally impact the functioning of the Appellant which has been fulfilling the basic human needs by rendering public charitable services; it may be appreciated that the trust has been working for helping the poor people for their medical relief and thus fulfilling one of the basic needs of the needly people. 5. Appellant craves leave to amend the grounds of appeal, as may be required. Grounds of appeal in ITA No. 3979/Mum/2026 1. On facts and circumstances of the case and in law, learned Commissioner of Income Tax – Exemptions has grossly erred in passing a rejection order dated 25.02.2026 disallowing renewal of registration under section 80G of the appellant trust on an erroneous reasoning that the appellant had not complied with notice dated 24. 01.2026 by which learned CIT-E had directed the appellant to submit various papers and documents and information. 2. On facts and circumstances, the said notice had been sent to the appellant trust by email but at the appellant trust the person who is in charge of the concerned tasks was on leave from 21.01.2026 to 16.02.2026 and the email was inadvertently missed out. 3. While the application for registration under section 80G was submitted by the appellant on 16.09.2025, to ensure timely renewal of its registration, the learned CIT-E acted upon the same only on 24.01.2026 and thereafter only after issuing one notice, took a harsh step of rejection of the renewal application for registration; Ld CIT-E could have issued a second notice before passing a rejection order. Appellant craves for one more opportunity so that the appellant can comply with the requirements of the renewal application. 4. Non continuation of the registration under section 80G would severally impact the functioning of the Appellant which has been depending upon donations from well wishers and in turn fulfilling the basic human needs by rendering public charitable services; it may be appreciated that the trust has been working for helping the poor people

4 ITA No. 3979 & 3980/Mum/2026 Vimal Foundation for their medical relief and thus fulfilling one of the basic needs of the needly people. 5. Appellant craves leave to amend the grounds of appeal, as may be required. Facts in Brief 3. The assessee filed Form No. 10AB on 16.09.2025 under section 12A(1)(ac)(ii) of the Act seeking renewal of registration under section 12AB. The learned CIT(E) observed that the application was incomplete and that the assessee had failed to furnish the documents and details called for through notice dated 24.01.2026 issued under Rule 17A(2). In the absence of the requisite material, the learned CIT(E) held that he was unable to satisfy himself regarding the objects of the trust, genuineness of its activities and compliance with the applicable laws. He, therefore, rejected the application by order dated 25.02.2026 passed in Form No. 10AD. 4. The assessee also filed Form No. 10AB on 20.09.2025 seeking renewal of approval under clause (ii) of the first proviso to section 80G(5). The learned CIT(E) noted that the assessee’s application for renewal of registration under section 12AB had already been rejected. He, therefore, held that the condition prescribed under section 80G(5)(i) was not fulfilled and that the application for approval under section 80G had consequently become untenable. Accordingly, the application was rejected by order dated 25.02.2026 passed in Form No. 10AD.

5 ITA No. 3979 & 3980/Mum/2026 Vimal Foundation 5. Before us, the learned Authorised Representative(AR) submitted that the notice dated 24.01.2026 was sent through email but did not come to the attention of the person concerned, as the said person was on leave from 21.01.2026 to 16.02.2026. The notice was, therefore, inadvertently missed and the assessee could not furnish the documents and details within the stipulated time. It was submitted that the non-compliance was neither deliberate nor intentional. The learned AR prayed that one more opportunity be granted to the assessee to furnish all the requisite documents and that both the matters be restored to the file of the learned CIT(E) for fresh consideration. 6. The learned Departmental Representative relied upon the respective orders passed by the learned CIT(E). He, however, did not raise any objection to the matters being restored to the file of the learned CIT(E) for fresh adjudication after granting an opportunity of hearing to the assessee. 7. We have considered the rival submissions and perused the material placed before us. It is evident from the order concerning registration under section 12AB that the application was rejected for non-compliance with the notice dated 24.01.2026 and not upon an examination of the merits of the objects or activities of the assessee. 8. The explanation furnished on behalf of the assessee is that the notice, though sent through email, did not come to the attention of the person responsible for attending to the proceedings, as such person was on leave during the relevant

6 ITA No. 3979 & 3980/Mum/2026 Vimal Foundation period. Consequently, the assessee could not furnish the documents and details required by the learned CIT(E). Considering the nature of the explanation and the fact that the rejection followed the non-compliance with a single notice, we are of the considered view that the assessee deserves one effective opportunity to present the requisite documents and explanations before the learned CIT(E). 9. Proceedings relating to registration of a charitable institution have significant consequences. The application ought, as far as practicable, to be considered on the basis of the relevant objects, activities, supporting material and applicable statutory requirements, rather than being finally terminated solely on account of an inadvertent procedural default. At the same time, the assessee is under an obligation to diligently comply with the notices and furnish all relevant material required for examination of its application. 10. In these circumstances, and having regard to the fair stand adopted by the learned Departmental Representative, we set aside the order dated 25.02.2026 passed by the learned CIT(E) rejecting the application for renewal of registration under section 12AB and restore the application to his file for adjudication afresh in accordance with law. The learned CIT(E) shall afford a reasonable and effective opportunity of hearing to the assessee and shall permit the assessee to furnish the requisite documents and explanations. Thereafter, the application shall be decided by a

7 ITA No. 3979 & 3980/Mum/2026 Vimal Foundation reasoned and speaking order, without being influenced by the earlier rejection. 11. The assessee is directed to furnish all the documents and details called for by the learned CIT(E) and to extend full cooperation in the proceedings. The assessee shall not seek unnecessary adjournments. 12. As regards the application for renewal of approval under section 80G, the impugned order shows that the rejection thereof was consequential to the rejection of the assessee’s application for registration under section 12AB. Since the order rejecting the application under section 12AB has been set aside and the matter has been restored for fresh adjudication, the consequential order rejecting approval under section 80G cannot independently survive at this stage. 13. We, therefore, set aside the order dated 25.02.2026 rejecting the application under section 80G and restore the said application also to the file of the learned CIT(E). The learned CIT(E) shall first adjudicate the application for renewal of registration under section 12AB and thereafter decide the application for renewal of approval under section 80G in accordance with the outcome of the proceedings under section 12AB and the other conditions prescribed under section 80G. The assessee shall be granted a reasonable opportunity of hearing before disposal of the application.

8 ITA No. 3979 & 3980/Mum/2026 Vimal Foundation 14. We clarify that we have not expressed any opinion on the merits of the assessee’s entitlement to registration under section 12AB or approval under section 80G. All the issues and contentions are left open for consideration by the learned CIT(E) in accordance with law.

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 : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. संबंधधत आयकर आयुक्त / The CIT(A) 3. 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