S A I WELFARE AND EDUCATIONAL TRUST,GHATKOPAR WEST MUMBAI vs. ITO EXEM. WARD 2(3) MUMBAI, 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. 3359/Mum/2026 (Assessment Year: 2026-27) S. A. I. Welfare and ITO Exem. Ward-2(3) Educational Trust Income Tax Commercial Point, Vs. Department MTNL Near Cooling Point, Building, Pedder Road, Opp. Sarvodaya Dr. G. D. Marg Hospital Ghatkopar Cumballa Hill, West Mumbai-400 086 Mubmai -400 026 PAN/GIR No. AADTS7494M (Applicant) (Respondent) Assessee by None Revenue by Ms. Shabana Praveen, Ld. DR Date of Hearing 16.06.2026 Date of Pronouncement 18.06.2026 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(E)"] in Form No. 10AD dated 01.03.2026 whereby the application filed by the assessee-trust seeking renewal of registration under section 12AB of the Income

2 ITA No. 3359/Mum/2026 S. A. I. Welfare and Educational Trust Tax Act, 1961 ("the Act") was rejected under section 12AB(1)(b) of the Act.

3 ITA No. 3359/Mum/2026 S. A. I. Welfare and Educational Trust 5. On the facts and circumstances of the case and in law the Ld. CIT (Exemptions) has erred in mechanically rejecting the application for renewal filed by the Assessee Trust vide rejection order in form 10AD dated 01.03.2026 without even according to the Appellant an adequate opportunity to address any perceived deficiency in the said application in Form 10AB seeking registration renewal u/s 12A r.w.s 12AB of the Income Tax Act, 1961 in violation of all principles of natural justice and equity and that the said order should thereby be annulled and set aside. 6. On the facts and circumstances of the case and in law the Ld. CIT (Exemptions) has erred in mechanically rejecting the application for renewal filed by the Assessee Trust vide rejection order in form 10AD dated 01.03.2026 without even indicating the specific deficiency in the application or the document or supporting evidences missing on the part of the Appellant Trust, which is in gross violation of equity and natural justice and thereby the said order should be annulled and set aside. 7. The Appellant craves the right to add, amend, alter, substitute and modify any or all the grounds at the time of hearing. 3. Briefly stated, the facts are that the assessee-trust filed an application in Form No.10AB on 30.09.2025 under section 12A(1)(ac)(ii) of the Act seeking renewal of registration under section 12AB of the Act. The ld. CIT(E), on verification of the application, observed that the application was not complete and that all the documents required to accompany the application had not been furnished. Accordingly, a notice dated 24.01.2026 was issued requiring the assessee to furnish complete documents/details as required under Rule 17A(2) of the Income Tax Rules, 1962. Thereafter, vide order in Form No.10AD dated 01.03.2026, the ld. CIT(E) rejected the application holding that the assessee had not complied with all the terms of the notice and, therefore, he was unable to arrive at a satisfactory

4 ITA No. 3359/Mum/2026 S. A. I. Welfare and Educational Trust conclusion regarding the objects of the trust, genuineness of activities and compliance with other applicable laws for the purposes of section 12AB(1)(b) of the Act. 4. When the appeal was called for hearing, none appeared on behalf of the assessee nor was any adjournment application moved. Accordingly, we proceed to dispose of the appeal ex parte qua the assessee after hearing the learned Departmental Representative and perusing the material available on record. 5. We have carefully considered the impugned order and the material available on record. We find that the entire basis of rejection is contained in paragraph 2 of the annexure to Form No.10AD wherein the ld. CIT(E) merely observed that the application was incomplete and that all the documents required to accompany the application were not furnished. However, neither in the body of the order nor in the annexure thereto has the ld. CIT(E) specified the particular documents which were allegedly not furnished, the precise deficiencies noticed in the application, or the manner in which the response furnished by the assessee was found to be inadequate. 6. We further find that the impugned order does not record any examination of the submissions and documents stated to have been filed by the assessee. There is no discussion regarding the objects of the trust, its activities, the evidences placed on record, or the compliance position of the assessee. The order merely reproduces the statutory requirement contained in section 12AB(1)(b) and proceeds to reject the application on the ground of

5 ITA No. 3359/Mum/2026 S. A. I. Welfare and Educational Trust non-compliance. Such a conclusion, unsupported by any analysis of the material available on record, cannot be sustained. 7. We also note from the impugned order that only one notice dated 24.01.2026 was issued by the ld. CIT(E) before passing the order dated 01.03.2026. The order itself records that the application was rejected on account of non-compliance with the notice. In our considered view, where the consequence entails denial of registration under section 12AB of the Act, the authority is required to clearly point out the deficiencies, examine the material furnished by the applicant and provide an effective and meaningful opportunity of being heard before arriving at an adverse conclusion. In the present case, neither the deficiencies have been identified with specificity nor has any finding been recorded as to why the documents available on record were insufficient for adjudicating the application. 8. Having regard to the entirety of facts and circumstances of the case, we are of the considered opinion that the matter requires fresh examination at the level of the ld. CIT(E). Accordingly, the impugned order is set aside and the matter is restored to the file of the ld. CIT(E) for de novo adjudication. The ld. CIT(E) shall examine all submissions and documents furnished by the assessee, specifically identify any deficiency, if found, afford adequate and effective opportunity of hearing to the assessee, and thereafter pass a speaking order in accordance with law after recording clear findings on the requirements contemplated under section 12AB of the Act.

6 ITA No. 3359/Mum/2026 S. A. I. Welfare and Educational Trust 9. The assessee is also directed to extend full cooperation and furnish all information and documents as may be called for by the ld. CIT(E) during the set aside proceedings.

Order pronounced in the open court on 18.06.2026.

Sd/- Sd/- (CHALLA NAGENDRA PRASAD) (MAKARAND VASANT MAHADEOKAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 18/06/2026 Dhananjay, Sr.PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलाथी / The Appellant 1. 2. प्रत्यथी / The Respondent. 3. संबंधधत आयकर आयुक्त / The CIT(A) 4. आयकर आयुक्त(अपील) / Concerned CIT 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