PRAYAS REHABILITATION FOUNDATION,DEONAR MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

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ITA 3729/MUM/2026Status: DisposedITAT Mumbai24 June 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the applications were disposed of ex parte due to non-compliance with a single notice, without examining the merits. Therefore, the matter was restored to the CIT (Exemption) for fresh consideration.

What were the facts?

The assessee trust filed applications for registration under section 12AB and approval under section 80G. The CIT (Exemption) rejected these applications ex parte after issuing only one notice and without affording further opportunity.

What were the issues?

Whether the rejection of applications for registration and approval without affording a reasonable opportunity of hearing is justified.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘E’ BENCH

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

For Appellant: Shri Sarvesh Toshniwal
For Respondent: Smt. Amrita Singh, CIT DR
Hearing: 24/06/2026Pronounced: 24/06/2026

आदेश / O R D E R PER BENCH: These two appeals, being ITA Nos. 3728/Mum/2026 and 3729/Mum/2026, have been preferred by the assessee trust against the separate orders passed by the learned CIT (Exemption), whereby the applications filed by the assessee for registration under section 12AB and approval under section 80G of the Act came to be rejected.

2 ITA No.3728 & 3729/Mum/2026 Priya Rehabilitation Foundation 2. At the time of hearing, the learned counsel appearing on behalf of the assessee submitted that the impugned orders have been passed ex parte. It was submitted that the learned CIT (Exemption) had issued only one notice during the course of proceedings and, on account of non compliance thereto, proceeded to reject the applications without affording any further opportunity to the assessee. The learned counsel submitted that the assessee is in possession of all relevant documents and details required for adjudication of its applications and is willing to place the same before the learned CIT (Exemption), if one more opportunity is granted. It was, therefore, pleaded that the matter may be restored to the file of the learned CIT (Exemption) for fresh consideration. The learned Departmental Representative fairly submitted that he would have no serious objection if the matter is restored to the file of the learned CIT (Exemption) for adjudication afresh in accordance with law.

3.

We have thoughtfully considered the rival submissions and perused the material available on record. From a perusal of the impugned orders, it transpires that the applications have been disposed of ex parte primarily on account of non compliance to the notice issued by the learned CIT (Exemption). The record further reveals that the proceedings culminated after issuance of a solitary notice and the applications came to be rejected without examination of the

3 ITA No.3728 & 3729/Mum/2026 Priya Rehabilitation Foundation material and explanations which the assessee now seeks to furnish in support of its claim. Proceedings relating to grant of registration under section 12AB and approval under section 80G are of considerable significance to a charitable institution and, therefore, the applications deserve to be examined on their own merits after affording a reasonable and effective opportunity to the applicant to place all relevant material on record.

4.

Having regard to the entirety of facts placed before us and considering the fair stand taken by both the parties, we are of the considered view that the ends of justice would be adequately served if one more opportunity is granted to the assessee to substantiate its claim before the learned CIT (Exemption). Accordingly, without expressing any opinion on the merits of the applications, we set aside the impugned orders and restore the entire matter relating to the assessee’s applications under section 12AB as well as section 80G to the file of the learned CIT (Exemption) for adjudication afresh in accordance with law. The learned CIT (Exemption) shall examine the applications de novo after granting due and effective opportunity of hearing to the assessee and after considering such documents, explanations and evidences as may be furnished before him. The assessee is also directed to extend full cooperation and furnish all requisite details so that the proceedings may be concluded expeditiously.

4 ITA No.3728 & 3729/Mum/2026 Priya Rehabilitation Foundation 5. In the result, both the appeals filed by the assessee are treated as allowed for statistical purposes.

Order pronounced on 24th June, 2026.

Sd/- Sd/- (GIRISH AGRAWAL) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 24/06/2026 KARUNA, sr.ps

Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy//

BY ORDER,

(Asstt. Registrar) ITAT, Mumbai

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