SHAILESH KAPADIA MEMORIAL TRUST ,MUMBAI vs. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

As the cases under consideration are having involved identical facts for registration under Section 12A and 80G of the Act and therefore, for the sake of brevity, the same were heard together and are being disposed of by this composite order.

Coming ITA No.1487/M/2026, it observed that in this case the Assessee is aggrieved against the impugned order, rejecting the application filed by the Assessee under Section 12A of the Act.

We observe from the impugned order that on verification of Form 10AB and Trust Deed/MoA, specifically Clause No. 4(b)(xi) of the objects, the ld. Commissioner observed that the same is in violation of the provision of Section 11 of the Act. For brevity, the Clause No. 4(b)(xi) of Trust Deed/MoA as objected to by the Ld. Commissioner, read as under:

Therefore, the ld. Commissioner, by issuing show cause notice dated 09.11.2025, show caused the Assessee, who in response made its submission vide letter dated 22.12.2025 inter-alia supporting such objectionable clause.

The ld. Commissioner though, considered the reply/claim of the Assessee, however, found the same as neither satisfactory nor conclusive and therefore, the ld. Commissioner rejected the application seeking registration under Section 12AB of the Act by concluding as under:

The Assessee therefore, being aggrieved has preferred the instant appeal and during the course of hearing apprised this Court that in order to meet out the objection raised by the ld. Commissioner in the impugned order and to cut short the litigation, it has already filed an application before the appropriate authority for amendment/modification of the “Clause objected to” by the ld. Commissioner, which read as under: -

Thus, considering the aforesaid peculiar facts and circumstances, as the Assessee in order to cut short the litigation, has already initiated the process for amendment of the objected clause by the ld. Commissioner and thus, removed the defect and hence, the objection raised by the ld. Commissioner with regard to the violation of provision of Section 11 has already been addressed to or met out by the Assessee, we deem it appropriate to set aside the impugned order and remand the case to the file of the ld. Commissioner for decision afresh by taking into consideration the amended Clause 4(b)(xi), as amended by the Assessee. Consequently, the case is remanded to the file of the ld. Commissioner for decision afresh, in the above terms.

As we have set aside the impugned order and remanded back the case to the file of Ld. Commissioner for decision afresh, thus are not delving other issues involved, as adjudication of the same would be futile exercise.

Thus, the case is accordingly remanded to the file of the ld. Commissioner for decision afresh.

Coming to ITA No. 1488/M/2026, which pertains to Registration under Section 80G of the Act, as we have remanded the case pertaining to the registration under Section 12A of the Act to the file of the ld. Commissioner for decision afresh and thus, in view of the same, this case is also remanded to the file of the ld. Commissioner for decision afresh simultaneously, with the application under Section 12A of the Act, as remanded back to him.

In the result, both the appeals under consideration are allowed for statistical purposes.