AAKAR CHARITABLE TRUST,MUMBAI vs. CIT (EXEMPTIONS), CUMBALLA HILLS

PER PAWAN SINGH, JUDICIAL MEMBER:

ld. Commissioner of Income Tax (Exemption) [for short “CIT(E)”] both dated

29.03.2026. In ITA No. 3964/Mum/2026, the assessee has challenged the

rejection of application for registration of assessee-trust under section

12AA/12AB of the Income Tax Act, 1961 (the Act). In ITA No. 3965/Mum/2026,

the assessee has challenged rejection of application for approval of fund under

section 80G(5) of the Act. Both the appeals are interconnected, therefore with

the consent of both the parties; both the appeals were heard together.

ld. Authorised Representative (AR) of the assessee submits that assessee is a

charitable Trust /Institution, filed application for registration of Trust under

section 12AA/12AB on 30.09.2025. At the time of filing on-line application for

registration under section 12AB, in Form 10AB, the assessee furnished all

required details including copy of trust deed and other evidence to substantiate

charitable object and the activities. The ld. CIT(E) rejected the application on the

ground that copy of trust deed has not been furnished. Once application under

section 12AA/12AB was rejected another application for registration of fund

under section 80G(5) was also rejected. The ld. A.R. for assessee submits that

though the assessee has filed all required details and evidences at the time of

filing application, yet they are still ready and willing to furnish all requisite details

is so required. The assessee is interested in pursuing the matter on merit and

has good case on merits, if one more opportunity is allowed to the assessee. He

undertakes on behalf of the assessee to be more vigilant in making timely

compliance. The ld CIT(E) may be directed to decide application on merit.

matter is restored back to the file of CIT(E) for consideration of application

afresh in accordance with law.

through the orders of lower authorities carefully. On considering the submissions

of ld AR of the assessee and on going through the details furnished before us, we find merit in the submission of ld. A.R. of the assessee that at the time of

filing application for regular registration of assessee trust on 30.09.2025, the

assessee furnished copy of trust deed which is evident from the

acknowledgement of ITBA portal. We further find that in response to show cause

notice dated 17.01.2026, the assessee again furnished required details vide reply

dated 02.02.2026. The ld. CIT(E) rejected the application for registration under

section by taking view that assessee has not furnished copy of instrument of

trust and in absence of such instrument of trust, no satisfaction can be formed

about the object of trust whether object of the trust are charitable in nature and

trust has been created for the benefit of public at large and not for the benefit of

any ascertainable cross section of society. Once, the application of assessee for

registration under section 12AA/12AB was rejected, application for approval of

fund under section 80G(5) was also rejected. Considering the facts and

circumstances of the case that at the time of filing application, the assessee

furnished the copy of trust deed, which has not been considered by ld. CIT(E).

Therefore, in our view the assessee deserves one more opportunity to explain its

object and activities for seeking registration under section 12AB. Hence, matter is

restored back to the file of CIT(E) to re–consider the application for registration

under section 12AB afresh. Needless to direct that before passing the order, the

ld. CIT(E) shall allow fair and reasonable opportunity to the assessee. The

assessee is also directed to furnish all require details and evidence, is so desired by ld CIT(E). In the result, the grounds of appeal raised by the assessee are

allowed.

ITA No. 3965/Mum/2026

approval. Considering the fact that we have already restored the application of

assessee for registration under section 12AB, therefore this application is also

restored to the file of ld. CIT(E) to be considered after passing order in

application under section 12AA/12AB of the Act.

Order was pronounced in the open Court on 27/04/2026.

Sd/- Sd/- Sd/- Sd/- GIRISH AGRAWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Dated: 27/04/2026 Biswajit, Sr. PS Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. By Order

Assistant Registrar / DDO ITAT, Mumbai