DISHA FOUNDATION,MULUND WEST, MUMBAI vs. CIT(EXEMPTIONS), MUMBAI, CUMBALLA HILL, MUMBAI

The Assessee has raised the following grounds of appeal:

The brief facts of the case are that the assessee trust, namely Disha The brief facts of the case are that the assessee trust, namely Disha The brief facts of the case are that the assessee trust, namely Disha Foundation, filed an application in Form No.10AB on 30.09.2025 under section Foundation, filed an application in Form No.10AB on 30.09.2025 under section Foundation, filed an application in Form No.10AB on 30.09.2025 under section 12A(1)(ac)(ii) seeking renewal of registration under section 12AB of the eking renewal of registration under section 12AB of the eking renewal of registration under section 12AB of the Income-tax Act, 1961 (“the Act”). During the course of proceedings, the tax Act, 1961 (“the Act”). During the course of proceedings, the tax Act, 1961 (“the Act”). During the course of proceedings, the CIT(Exemptions) observed that the application filed by the assessee was CIT(Exemptions) observed that the application filed by the assessee was CIT(Exemptions) observed that the application filed by the assessee was incomplete and all the documents required under Rule 17A incomplete and all the documents required under Rule 17A(2) had not been (2) had not been furnished. Accordingly, CIT(Exemptions) issued a notice dated 24.01.2026 furnished. Accordingly, CIT(Exemptions) issued a notice dated 24.01.2026 furnished. Accordingly, CIT(Exemptions) issued a notice dated 24.01.2026 asking the assessee to furnish the complete set of documents and other details. asking the assessee to furnish the complete set of documents and other details. asking the assessee to furnish the complete set of documents and other details. According to the CIT(Exemptions), the assessee failed to comply with the terms According to the CIT(Exemptions), the assessee failed to comply with the terms According to the CIT(Exemptions), the assessee failed to comply with the terms of the notice. The CIT(Exemptions) observed that registration under section notice. The CIT(Exemptions) observed that registration under section notice. The CIT(Exemptions) observed that registration under section 12AB of the Act could be granted only after satisfying himself regarding the 12AB of the Act could be granted only after satisfying himself regarding the 12AB of the Act could be granted only after satisfying himself regarding the objects of the trust, the genuineness of its activities and compliance with other objects of the trust, the genuineness of its activities and compliance with other objects of the trust, the genuineness of its activities and compliance with other laws for achieving its objec laws for achieving its objects. Since, according to the CIT(Exemptions), ts. Since, according to the CIT(Exemptions), necessary compliance was not made by the assessee, he was unable to arrive at a necessary compliance was not made by the assessee, he was unable to arrive at a necessary compliance was not made by the assessee, he was unable to arrive at a conclusion on these aspects and, therefore, rejected the application for renewal conclusion on these aspects and, therefore, rejected the application for renewal conclusion on these aspects and, therefore, rejected the application for renewal of registration under section 12AB of the Act of registration under section 12AB of the Act, vide order dated 04.03.2026. de order dated 04.03.2026.

The assessee is in appeal before us against the order passed by the The assessee is in appeal before us against the order passed by the The assessee is in appeal before us against the order passed by the CIT(Exemptions) rejecting the application of the assessee. CIT(Exemptions) rejecting the application of the assessee.

Before us, the learned counsel for the assessee submitted that the Before us, the learned counsel for the assessee submitted that the Before us, the learned counsel for the assessee submitted that the CIT(Exemptions) erred in r CIT(Exemptions) erred in rejecting the application without examining the ejecting the application without examining the objects of the trust and the genuineness of its activities as mandated under objects of the trust and the genuineness of its activities as mandated under objects of the trust and the genuineness of its activities as mandated under section 12AB of the Act. It was submitted that all relevant documents, including section 12AB of the Act. It was submitted that all relevant documents, including section 12AB of the Act. It was submitted that all relevant documents, including the Trust Deed, registration certificate under the the Trust Deed, registration certificate under the Public Trust Act, audited Public Trust Act, audited financial statements, income financial statements, income-tax returns and activity reports, were already tax returns and activity reports, were already available on the record of the Department and had also been uploaded along available on the record of the Department and had also been uploaded along available on the record of the Department and had also been uploaded along with Form No.10AB. The learned counsel further submitted that the assessee with Form No.10AB. The learned counsel further submitted that the assessee with Form No.10AB. The learned counsel further submitted that the assessee had already been granted provisional registration under section 12AB vide Form already been granted provisional registration under section 12AB vide Form already been granted provisional registration under section 12AB vide Form No.10AC dated 01.12.2022 valid from Assessment Year 2022 No.10AC dated 01.12.2022 valid from Assessment Year 2022-23 to Assessment 23 to Assessment Year 2026-27 after due verification of its objects and, therefore, rejection of the 27 after due verification of its objects and, therefore, rejection of the 27 after due verification of its objects and, therefore, rejection of the application for regular registration without examining the charitable activities registration without examining the charitable activities registration without examining the charitable activities was contrary to the scheme of section 12AB of the Act. According to the learned was contrary to the scheme of section 12AB of the Act. According to the learned was contrary to the scheme of section 12AB of the Act. According to the learned counsel, the order was passed in a mechanical manner without considering the counsel, the order was passed in a mechanical manner without considering the counsel, the order was passed in a mechanical manner without considering the material already available on record and material already available on record and without granting adequate opportunity without granting adequate opportunity to clarify the details sought. to clarify the details sought.

We have heard the rival submissions and perused the material available We have heard the rival submissions and perused the material available We have heard the rival submissions and perused the material available on record.

We find that the application of the assessee seeking regular registration We find that the application of the assessee seeking regular registration We find that the application of the assessee seeking regular registration under section 12AB was rejected primarily on the ground of non s rejected primarily on the ground of non-compliance s rejected primarily on the ground of non with the notice issued by the CIT(Exemptions). However, the specific with the notice issued by the CIT(Exemptions). However, the specific with the notice issued by the CIT(Exemptions). However, the specific contention raised before us is that the relevant documents such as the Trust contention raised before us is that the relevant documents such as the Trust contention raised before us is that the relevant documents such as the Trust Deed, audited financial statements, income Deed, audited financial statements, income-tax returns and activity reports were d activity reports were already available on record and had also been uploaded along with Form already available on record and had also been uploaded along with Form already available on record and had also been uploaded along with Form No.10AB. The Counsel for the assessee has further contended that provisional No.10AB. The Counsel for the assessee has further contended that provisional No.10AB. The Counsel for the assessee has further contended that provisional registration had already been granted under section 12AB vide Form No.10AC registration had already been granted under section 12AB vide Form No.10AC registration had already been granted under section 12AB vide Form No.10AC and that the objects of the trust had already undergone verification. the objects of the trust had already undergone verification. the objects of the trust had already undergone verification.

Considering the entirety of facts and circumstances of the case and in the Considering the entirety of facts and circumstances of the case and in the Considering the entirety of facts and circumstances of the case and in the interest of substantial justice, we are inclined to set aside the impugned order interest of substantial justice, we are inclined to set aside the impugned order interest of substantial justice, we are inclined to set aside the impugned order passed by the CIT(Exemptions) and restore the matter to his file for de novo passed by the CIT(Exemptions) and restore the matter to his file for de novo passed by the CIT(Exemptions) and restore the matter to his file for de novo adjudication. The CIT(Exemptions) shall examine the objects of the trust, the xemptions) shall examine the objects of the trust, the xemptions) shall examine the objects of the trust, the genuineness of its activities and other conditions prescribed under section 12AB genuineness of its activities and other conditions prescribed under section 12AB genuineness of its activities and other conditions prescribed under section 12AB after taking into consideration the documents already available on record as well after taking into consideration the documents already available on record as well after taking into consideration the documents already available on record as well as such additional material as may be as such additional material as may be furnished by the assessee. Needless to furnished by the assessee. Needless to state, adequate opportunity of being heard shall be afforded to the assessee. state, adequate opportunity of being heard shall be afforded to the assessee. state, adequate opportunity of being heard shall be afforded to the assessee. Since we are restoring the matter for fresh adjudication, we refrain from Since we are restoring the matter for fresh adjudication, we refrain from Since we are restoring the matter for fresh adjudication, we refrain from expressing any opinion on the merits of the claim and all issues expressing any opinion on the merits of the claim and all issues are left open for are left open for consideration by the CIT(Exemptions) in accordance with law. consideration by the CIT(Exemptions) in accordance with law.

In the result, the appeal of the assessee is allowed for statistical purposes. In the result, the appeal of the assessee is allowed for statistical purposes. In the result, the appeal of the assessee is allowed for statistical purposes.