BAFNA PUBLIC CHARITABLE FOUNDATION,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

Briefly stated, the assessee had filed an application in Form No.10AB under section 12A(1)(ac)(ii) on 14/08/2025 seeking registration under section 12AB of the Act. The learned CIT(E), however, rejected the application primarily on the ground that there was non-compliance on the part of the assessee and that the requisite documents accompanying the application were not furnished. Consequent thereto, the application seeking approval under section 80G was also rejected.

Before us, the learned counsel for the assessee submitted that all the requisite details and supporting documents, as called for by the learned CIT(E), had in fact been duly uploaded and furnished. However, owing to an inadvertent technical error, the documents came to be uploaded under the tab relating to section 80G application and therefore the same apparently did not reflect or become visible while processing the application under section 12AB. It was thus submitted that the rejection of the applications has occurred not on account of any deliberate default or non-compliance on the part of the assessee, but because of a procedural and technical discrepancy in uploading of documents.

Having considered the rival submissions and upon perusal of the material placed before us, we find that the matter requires reconsideration at the end of the learned CIT(E). If the assessee had indeed furnished the requisite details and documents, though under a different tab or category in the electronic portal, then the applications ought not to have been rejected merely on such technical or procedural lapses without examining the substantive compliance made by the assessee. The object of grant of registration under section 12AB and approval under section 80G is to examine the genuineness of the activities and compliance with the statutory conditions, and not to non-suit an applicant merely on account of curable technical deficiencies in the manner of uploading documents. Interest of substantial justice, therefore, warrants that one more effective opportunity be granted to the assessee to place all relevant documents before the learned CIT(E).

Accordingly, in the interest of justice and fair play, we restore the entire matter back to the file of the learned CIT(E) with a direction to examine afresh the applications filed by the assessee under sections 12AB and 80G after considering all the documents and details furnished by the assessee and thereafter decide the same in accordance with law after affording adequate opportunity of hearing to the assessee.

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