GOKULDAS ZAVERCHAND KAMDAR & DR KAHANDAS NARANDAS NANDOLA HIGHER EDUCATION TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

Briefly stated, the assessee trust was constituted by a Trust Deed dated 08.09.1994 and is registered with the Charity Commissioner, Mumbai. The trust has been established with the principal object of promoting education. The record further reveals that the assessee had already been granted registration under section 12AB as well as approval under section 80G for the period from A.Y. 2022-23 to A.Y. 2026-27 vide order dated 10.03.2022. Upon expiry of the said period, the assessee filed applications in Form No.10AB on 30.09.2025 seeking renewal of registration under section 12AB and approval under section 80G.

During the course of proceedings, the Ld. CIT (Exemption) issued a notice dated 02.01.2026 calling upon the assessee to furnish the documents and details prescribed under Rule 17A. Since the requisite details were not furnished within the stipulated time, the Ld. CIT (Exemption) proceeded to reject the application for renewal of registration under section 12AB. Consequent thereto, the application seeking approval

Before us, the Ld. Counsel submitted that the rejection has been made primarily on account of non-compliance with the notice issued by the Ld. CIT (Exemption) and not on the basis of any adverse finding regarding the objects of the trust, the genuineness of its activities or violation of any statutory condition prescribed under the Act. It was further submitted that the managing trustee, who was looking after the affairs of the trust and coordinating the proceedings, was suffering from serious health issues during the relevant period and was also hospitalized, due to which the trust could not effectively respond to the notice issued by the Ld. CIT (Exemption). It was thus pleaded that one more opportunity may be granted so that the assessee can place all relevant material and supporting documents before the competent authority.

We have considered the rival submissions and perused the material available on record. The impugned order rejecting renewal of registration under section 12AB shows that the application has been rejected primarily for want of compliance with the notice issued by the Ld. CIT (Exemption). There is no finding in the impugned order doubting the charitable nature of the objects of the trust, the genuineness of its activities, or

Having regard to the totality of facts and circumstances of the case, particularly the fact that the assessee is an educational charitable trust which was already enjoying registration and approval under the Act in the immediately preceding period and considering the explanation furnished regarding the inability to comply with the notice, we are of the considered view that the ends of justice would be adequately served if one more effective opportunity is granted to the assessee to substantiate its claim before the Ld. CIT (Exemption). The scheme of section 12AB contemplates examination of the relevant material and satisfaction regarding the prescribed conditions. Such examination would be better served after affording the assessee a reasonable opportunity to place all relevant documents and explanations on record.

Accordingly, we set aside the impugned order passed under section 12AB and restore the matter to the file of the Ld. CIT (Exemption) for fresh adjudication in accordance with law after affording due and effective opportunity of being heard to the assessee. The assessee shall furnish all documents,

Since the rejection of approval under section 80G is consequential to the rejection of registration under section 12AB, the impugned order passed under section 80G is also set aside and restored to the file of the Ld. CIT (Exemption) for fresh adjudication. The application under section 80G shall be decided afresh in accordance with law after adjudicating the application for registration under section 12AB and after providing adequate opportunity of hearing to the assessee.

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