THE BHARUCHA TRUST,MUMBAI vs. INCOME TAX COMMISSIONER, CIT (EXEMPTIONS)

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ITA 4105/MUM/2026Status: DisposedITAT Mumbai24 June 2026AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the ex-parte order of the CIT(Exemption) and restored the matter to the CIT(Exemption)'s file for fresh adjudication. The CIT(Exemption) was directed to decide the application on merits after affording the assessee a due and effective opportunity of hearing.

What were the facts?

The assessee's application for renewal of registration under section 12AB was rejected by the CIT(Exemption) for non-compliance with a notice to furnish required documents. The assessee contended that due to the managing trustee's age, there were delays in gathering documents and that they were deprived of an adequate opportunity to be heard.

What were the issues?

Whether the CIT(Exemption) was justified in rejecting the renewal of registration application ex-parte without affording an adequate opportunity of hearing. Whether the assessee's reasons for non-compliance were sufficient to warrant a restoration of the application.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLE SHRI AMIT SHUKLA & HON’BLE SHRI GIRISH AGRAWAL

For Respondent: Smt. Amrita Singh, CIT DR

INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: E BEFORE HON’BLE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND HON’BLE SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA 4105/MUM/2026 िनधा�रणवष�/Assmt. Year: 2025-26) Permanent Account Number: AAATT0365R

ITO The Bharucha Trust Fort, Mumbai-400 001. MTNL, Mumbai. Vs. (��थ� Respondent) (अपीलाथ� Appellant)

िनधा�रती�ारा/Assessee represented by: None राज� व�ारा/Revenue represented by: Smt. Amrita Singh, CIT DR

सुनवाईकीतारीख/Date of conclusion of hearing: 18-June-2026 घोषणाकीतारीख/Date of pronouncement: 24-June-2026 आदेश / ORDER PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of Ld. CIT(Exemption), Mumbai, vide order no. ITBA/EXM/F/EXM45/2025- 26/1086499022(1), dated 25.02.2026, wherein the assessee’s application seeking renewal of registration u/s. 12AB has been rejected.

2.

The present appeal by the assessee is on account of ex-parte rejection of application filed by the assessee in Form No. 10AB under section 12A(1)(ac)(ii) of the Act seeking renewal of registration under section 12AB. According to CIT(E), Form No. 10AB filed by the assessee

ITA No.4105 /MUM/2026 The Bharucha Trust Assessment Year 2025-26

was not complete as documents required were not accompanied with the application. The notice was issued in this regard asking the assessee to furnish complete set of documents and details which remained to be complied by the assessee. On this ground CIT(E) rejected the application for renewal of registration holding that there is non-compliance of the notice issued to the assessee.

3.

Before us contention of the assessee through the ground of appeal raised is that the managing trustee is senior citizen aged 88 years and therefore, there were certain delays in gathering all the required documents and details which could not be furnished within time limit given. Assessee has also raised a grievance that it was deprived of an adequate opportunity of being heard and presenting its case before the ld. CIT(E). It has, therefore, been pleaded that in the interest of substantial justice, the matter may be restored to the file of the learned CIT(E) for fresh adjudication on merits after affording due and effective opportunity of hearing.

4.

The learned Departmental Representative fairly submitted that she would have no serious objection if the matter is restored to the file of the learned CIT(E) for fresh consideration.

5.

Considering the above as well as material placed on record, we are of the opinion that the ends of justice would be met if the impugned ex parte order is set aside and the matter is restored to the file of the learned CIT(E) for adjudication afresh in accordance with law. Accordingly, the impugned order of the learned CIT(E) is set aside and the matter is restored to his file with a direction to decide the application on merits and in accordance with law after affording due and effective

ITA No.4105 /MUM/2026 The Bharucha Trust Assessment Year 2025-26

opportunity of hearing to the assessee. The assessee is also directed to extend full cooperation in the appellate proceedings.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 24 June, 2026.

Sd/- Sd/- (Amit Shukla) (Girish Agrawal) Judicial Member Accountant Member Dated: 24.06.2026 Copy of the order forwarded to : 1. The appellant 2. The respondent 3. CIT-concerned 4. DR, ITAT, Mumbai 5. Guard file

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