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

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ITA 4678/MUM/2026Status: DisposedITAT Mumbai24 June 2026AY 2026-276 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the rejection was primarily based on alleged non-compliance without proper examination of the documents furnished by the assessee. The matter was restored to the CIT (Exemptions) for fresh adjudication.

What were the facts?

The assessee, Lions District 323 A1 Charity Trust, applied for renewal of registration under section 12AB and approval under section 80G. The CIT (Exemptions) rejected the applications citing non-compliance with a notice.

What were the issues?

Whether the CIT (Exemptions) erred in rejecting the applications for renewal/approval based on alleged non-compliance without proper examination of submitted documents and without affording an effective opportunity of hearing.

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 Atik Jain
For Respondent: Smt. Amrita Singh, CIT DR
Hearing: 23/06/2026Pronounced: 24/06/2026

आदेश / O R D E R PER BENCH: These two appeals have been filed by the assessee, Lions District 323 A1 Charity Trust, against the separate orders both dated 28.02.2026 passed by the learned CIT (Exemptions), Mumbai, whereby the application of the assessee seeking renewal/registration under section 12AB of

2 ITA No.4677 & 4678/Mum/2026 Lions District A1 Charity Trust the Income Tax Act, 1961 and consequential approval under section 80G of the Act came to be rejected.

2.

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.

3.

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

3 ITA No.4677 & 4678/Mum/2026 Lions District A1 Charity Trust section 12AB. Consequent to the rejection of registration under section 12AB, the application seeking approval under section 80G was also rejected on the reasoning that the assessee no longer fulfilled the prerequisite condition of holding a valid registration under section 12AB.

4.

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.

5.

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

4 ITA No.4677 & 4678/Mum/2026 Lions District A1 Charity Trust arrive at a satisfactory conclusion regarding the objects and genuineness of activities of the trust. The order does not indicate any examination on merits of the documents and material which, according to the assessee, had already been furnished before the authority. The rejection of approval under section 80G is merely consequential to the rejection of registration under section 12AB and does not contain any independent adjudication.

6.

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.

5 ITA No.4677 & 4678/Mum/2026 Lions District A1 Charity Trust 7. Accordingly, the impugned orders dated 28.02.2026 passed by the learned CIT (Exemptions), Mumbai in respect of registration under section 12AB as well as approval under section 80G are set aside and the matters are restored to his file for adjudication afresh in accordance with law. The learned CIT (Exemptions) shall examine all documents and submissions furnished by the assessee, afford due and effective opportunity of hearing, and thereafter pass a reasoned order on merits in accordance with law. The assessee is also directed to extend full cooperation and furnish all such details as may be called for during the course of fresh proceedings.

8.

In the result, both the appeals of the assessee are 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

6 ITA No.4677 & 4678/Mum/2026 Lions District A1 Charity Trust

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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