TEHMINA K KATRAK CHARITABLE TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX EXEMPTIONS, MUMBAI

Both the appeals pertain to the same assessee and arising from common fact related to the cancellation of application of registration u/s 12A and approval u/s 80G of the Act. So, for sake of convenience both the appeals are taken together, heard together and disposed of by a common order. ITA 6422/MUM/2026 is taken as a lead case, and decision rendered therein shall be applied mutatis mutandis to other appeal.

We heard the rival submissions and considered the documents available on record. The assessee is a charitable trust and filed application in Form No. 10AB u/s 12A(1)(ac)(ii) on dated 13.09.2025, seeking renewal of registration u/s 12AB of the Act. On verification of application in Form No. 10AB filed by the assessee, the Ld. CIT(E) has found that the documents required to accompanying the application are not furnished. Accordingly, the Ld. CIT(E) issued a notice dated 10.01.2026 and are directed to furnish all the relevant documents under Rule 17A(2) of the Income Tax Rules, 1963 within 16.01.2026. As per the Ld. CIT(E), the assessee had not made any compliance against the said notice issued u/s 12A of the Act. Considering this, the Ld. CIT(E) rejected the application for renewal of registration u/s 12A of the Act. Being aggrieved, the assessee filed an appeal before us.

The Ld. AR argued and filed a paper book comprising pages 1 to 70 which has been placed on record. The Ld. AR contended that the assessee filed the application for seeking renewal of registration u/s 12AB of the Act. The Ld. CIT(E) had issued notice dated 10.01.2026 and fixed the date of hearing on 16.01.2026 at 1:52 p.m. for requirement of documents under Rule 17A(2) of the Rules. The assessee submitted the adjournment request in compliance of notice of the Ld. CIT(E). The copy of the “Adjournment request” is annexed in APB pages 9 to 10. The Ld. AR contended that the assessee is already registered u/s 12AA of the Act on dated 30.03.2021. The copy of the registration certificate is annexed in APB page 69 to 70. The Ld. AR further argued that without allowing a reasonable opportunity to the assessee, the Ld. CIT(E) had passed the order, which is violation of natural justice.

The Ld. DR argued and stands in favor of the order of the Ld. CIT(E).

In our considered view, we find that the assessee had already been granted registration under section 12AA(1)(b)(ii) of the Act vide order dated 30.12.2021, with effect from 01.04.2021. A copy of the said registration order is duly placed at APB pages 69 to 70. Subsequently, the assessee filed an application seeking renewal of registration under section 12AB of the Act. The Ld. CIT(E) issued a notice under Rule 17A(2) of the Rules dated 10.01.2026, fixing the matter for hearing on 16.01.2026. In response to the said notice, the assessee sought an adjournment. However, without granting any further opportunity of hearing, the Ld. CIT(E) rejected the assessee's application for renewal of registration.

We find that the assessee was not afforded an adequate and reasonable opportunity to present its case before the Ld. CIT(E). Considering the principles of natural justice, we deem it appropriate to restore the matter to the file of the Ld. CIT(E) for fresh consideration after granting the assessee a reasonable opportunity of being heard. Needless to say, the assessee shall also remain diligent and extend necessary cooperation for expeditious disposal of the application. Accordingly, the matter relating to renewal of registration under section 12AB of the Act is restored to the file of the Ld. CIT(E) for fresh adjudication in accordance with law.

In the result, the appeal of the assessee bearing ITA No. 6422 & 6423/Mum/2026 are allowed for statistical purposes. Order pronounced in the open court on 29th day of September 2026.