SHREE GURUVAYURAPPAN SANKEERTHANA SAMITHI,MUMBAI vs. COMMISSIONER OF INCOME TAX - (EXEMPTIONS), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH MUMBAI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER ITA No. 4426/Mum/2026 (Assessment Year: 2026-27) Shree CIT(Exemptions) Guruvayurappan Room No. 601, 6th Sankeerthana Vs. Floor, Cumballa Hill Samithi MTNL TE Building, K-3/1 Vishnu Mandir Pedder Road, Dr. Society, Bangur Nagar, Gopalrao Deshmukh Goregaon (West), Marg, Cumballa Hill, Mumbai-400 090 Mumbai-400 026 PAN/GIR No. AADTS7672M (Applicant) (Respondent) Assessee by Ms. Swati Jagetia, Ld. AR Revenue by Ms. Shabana Parveen, Ld. DR Date of Hearing 17.06.2026 Date of Pronouncement 19.06.2026 आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM: This appeal is directed against the order passed by the learned Commissioner of Income Tax (Exemptions), Mumbai [hereinafter referred to as "CIT(A)"], [“CIT(E)”] in Form No.10AD dated 01.03.2026 passed under section 12AB(1)(b)(ii) of the

2 ITA No. 4426/Mum/2026 Shree Guruvayurappan Sankeerthana Samithi Income-tax Act, 1961 (“the Act”), whereby the application filed by the assessee for renewal of registration under section 12AB of the Act came to be rejected.

1.1 On the facts and in the circumstances of the case and in law, the Ld. CIT (E) erred in rejecting the Appellant's application for grant of registration under section 12AB of the Act, solely on the ground of alleged non-compliance of his notice dated 24.01.2026, which was sent by email at email id of earlier trustee [prakashn@ddecor.com], who due to resignation is now not part of the Appellant Trust and consequently the Appellant Trust could not receive the notice and was prevented from complying with the requirement of his notice. 1.2 On the facts and in the circumstances of the case and in law, the Ld. CIT (E) could have issued physical notice/ reminder to give one more opportunity before passing the rejection order merely on the basis of single notice, which also could not be said to be legally served on the Appellant Trust. 1.3 The Appellant prays that the impugned order rejecting the registration under section 12AB be set aside and the matter be restored to the file of the Hon'ble CIT (E) with a direction to grant registration after providing a proper and effective opportunity of hearing to the Appellant. 1.4 That the Appellant craves leave to add, alter, amend, or withdraw any of the above grounds at the time of hearing of the appeal. 3. The assessee, a charitable trust, was originally granted registration under section 12A of the Act on 28.03.1977. Pursuant to the amendments introduced by the Finance Act, 2020, it migrated to the new registration regime and was granted registration under section 12AB for the period from A.Y. 2022-23 to A.Y. 2026-27. Subsequently, the assessee filed Form No. 10AB on 30.09.2025 seeking renewal of registration. During the course

3 ITA No. 4426/Mum/2026 Shree Guruvayurappan Sankeerthana Samithi of proceedings, the learned CIT(E) issued a notice dated 24.01.2026 calling for certain details and documents. Since the assessee did not furnish the requisite information, the learned CIT(E) held that he was unable to satisfy himself regarding the objects of the trust, genuineness of its activities and compliance with the conditions prescribed under section 12AB(1)(b) of the Act and, accordingly, rejected the application for renewal of registration vide order dated 01.03.2026. Aggrieved by the said order, the assessee is in appeal before us. 4. During the course of hearing, the learned Authorised Representative (AR) submitted that the assessee had never intended to disregard the proceedings before the learned CIT(E). Our attention was invited to an affidavit dated 16.04.2026 sworn by Shri Venugopal Gopinatan Nair, Trustee of the assessee trust. In the said affidavit, it has been affirmed that the notice dated 24.01.2026 was sent to the email address of an erstwhile trustee, namely, prakashn@ddecor.com, who had already resigned from the trust and was no longer associated with its affairs. It was further affirmed that no notice was served upon the assessee through any other mode of communication and consequently the assessee remained unaware of the proceedings before the learned CIT(E). It was also stated that the non-submission of information and details was wholly unintentional and occurred solely on account of non-receipt of the notice. 5. Relying upon the aforesaid affidavit, the learned AR submitted that the impugned order had been passed solely on

4 ITA No. 4426/Mum/2026 Shree Guruvayurappan Sankeerthana Samithi account of non-compliance and not on account of any adverse finding regarding the charitable objects of the trust or the genuineness of its activities. It was therefore pleaded that one more opportunity may be granted to the assessee to place all relevant material before the learned CIT(E) and substantiate its claim for renewal of registration under section 12AB of the Act. 6. The learned Departmental Representative did not raise any serious objection to restoration of the matter to the file of the learned CIT(E) for fresh consideration, subject to the assessee extending full cooperation and furnishing all information and documents that may be called for during the proceedings. 7. We have heard the rival submissions and perused the material available on record. We find that the impugned order has been passed solely on account of non-compliance with the notice dated 24.01.2026. A perusal of the order reveals that the learned CIT(E) has not recorded any finding adverse to the assessee regarding the nature of its objects, the genuineness of its activities or violation of any statutory requirement. The rejection has been occasioned only because the learned CIT(E) was unable to examine the relevant aspects in the absence of the information called for during the proceedings. 8. We further find that the assessee has placed on record a duly sworn affidavit explaining the circumstances which led to the non-compliance. The deponent has categorically affirmed that the notice dated 24.01.2026 was transmitted to the email address of an erstwhile trustee who had already resigned from the trust

5 ITA No. 4426/Mum/2026 Shree Guruvayurappan Sankeerthana Samithi and was no longer connected with its affairs. It has further been affirmed that the notice was not received by the assessee trust through any other mode of communication and that the non- submission of details was neither deliberate nor intentional. The contents of the affidavit have not been controverted by the Revenue by bringing any material on record to the contrary. 9. It is a settled principle that where an application is rejected for want of compliance without examination of the merits of the claim and the assessee demonstrates a reasonable cause for such non-compliance, the cause of substantial justice would be better served by affording an effective opportunity of hearing. The provisions of section 12AB contemplate examination of the objects of the trust, the genuineness of its activities and compliance with applicable laws. Such examination necessarily requires consideration of the material and explanations that may be furnished by the applicant. In the present case, such exercise could not be undertaken because the proceedings culminated at the threshold on account of non-compliance. 10. Considering the entirety of the facts and circumstances of the case, the explanation furnished by the assessee through a sworn affidavit, and the fair stand adopted by the learned Departmental Representative, we are of the considered view that the interests of justice would be adequately met by restoring the matter to the file of the learned CIT(E) for fresh adjudication. 11. Accordingly, we set aside the impugned order dated 01.03.2026 passed by the learned CIT(E) and restore the matter

6 ITA No. 4426/Mum/2026 Shree Guruvayurappan Sankeerthana Samithi to his file with a direction to examine the assessee's application for renewal of registration under section 12AB afresh in accordance with law. The learned CIT(E) shall afford reasonable and effective opportunity of hearing to the assessee and shall decide the application by way of a speaking order after considering such documents, explanations and evidences as may be furnished by the assessee. The assessee is also directed to extend full cooperation and promptly furnish all details and documents that may be called for during the course of the fresh proceedings.

Order pronounced in the open court on 19.06.2026.

Sd/- Sd/- (CHALLA NAGENDRA PRASAD) (MAKARAND VASANT MAHADEOKAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 19/06/2026 Dhananjay, Sr.PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलाथी / The Appellant 1. प्रत्यथी / The Respondent. 2. 3. संबंधधत आयकर आयुक्त / The CIT(A)

7 ITA No. 4426/Mum/2026 Shree Guruvayurappan Sankeerthana Samithi आयकर आयुक्त(अपील) / Concerned CIT 4. धिभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, मुम्बई / DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, सत्याधपत प्रधत //True Copy// 1. उि/सहायक िंजीकार ( Asst. Registrar) आयकर अिीिीय अतिकरण, मुम्बई / ITAT, Mumbai