LIONS DISTRICT 323 A1 CHARITY TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI, MUMBAI

The grievance of the assessee, as raised in the grounds of appeal, is that the learned CIT (Exemptions) erred in rejecting the application for renewal of registration under section 12AB and approval under section 80G on the allegation of non- compliance to the notice issued during the course of proceedings. It has been contended that the assessee had duly furnished the requisite details and supporting documents before the office of the learned CIT (Exemptions) and, therefore, the conclusion drawn in the impugned orders that there was non-compliance on the part of the assessee is factually incorrect. It has further been pleaded that the applications have been rejected without proper examination of the material placed on record and without affording an effective opportunity of hearing.

Briefly stated, the assessee had filed an application in Form No.10AB seeking renewal of registration under section 12AB. The learned CIT (Exemptions), after issuing notice dated 12.01.2026 calling for certain details and documents, proceeded to reject the application vide order dated 28.02.2026 on the ground that the assessee had not complied with the terms of the notice and, therefore, he was unable to satisfy himself regarding the conditions prescribed under

At the time of hearing, the learned counsel submitted that the assessee had in fact furnished the requisite details and documents before the learned CIT (Exemptions) physically and the same were available with the department. It was submitted that the applications have been rejected merely on the premise of non-compliance without adverting to the material furnished by the assessee and without examining the objects, activities and other relevant statutory requirements. It was thus pleaded that the matter may be restored to the file of the learned CIT (Exemptions) for fresh adjudication after considering all the documents furnished by the assessee. The learned Departmental Representative fairly left the issue to the discretion of the Bench.

We have carefully considered the rival submissions and perused the material available on record. From the impugned order passed under section 12AB, it is evident that the application has been rejected primarily on the ground that the assessee had not complied with the notice issued by the learned CIT (Exemptions) and, therefore, he was unable to

Having regard to the entirety of the facts and circumstances of the case, we are of the considered view that the issues involved require fresh examination at the level of the learned CIT (Exemptions). Registration under section 12AB and approval under section 80G are matters having significant civil consequences for a charitable institution and, therefore, the applications deserve to be adjudicated after due consideration of all relevant documents, explanations and evidences furnished by the applicant trust. Since the assessee has consistently asserted before us that all requisite documents had been furnished before the learned CIT (Exemptions), and since the impugned orders have proceeded substantially on the premise of non-compliance, it would be appropriate, in the interest of justice, to restore the entire matter to the file of the learned CIT (Exemptions) for fresh consideration.

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