ENVIRONMENTAL SOCIAL GOVERNANCE & COMPANY SECRETARY FOUNDATION,SIVAKASI vs. CIT (EXEMPTION), CHENNAI

ITA 3863/CHNY/2026Status: DisposedITAT Chennai22 September 2026AY 2025-264 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection of the application for registration under Section 12AB of the Income Tax Act, 1961, by the CIT(E) was not sustainable. The Tribunal found that the CIT(E), while rejecting the application for want of full and complete details, had neither identified the specific documents or particulars that were deficient nor called upon the assessee to furnish any further clarification. In the absence of such specific identification, the rejection based on a general observation of non-furnishing of complete details could not be sustained. Therefore, in the interest of justice and fair play, the Tribunal set aside the impugned order and restored the matter to the file of the CIT(E) for fresh consideration. The CIT(E) was directed to afford a reasonable opportunity of hearing to the assessee and decide the application afresh after considering all submissions and evidence. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, M/s. Environmental Social Governance & Co. Secretary Foundation, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Chennai, dated 26.06.2026. This order rejected the assessee's Form No. 10AB, which was filed for seeking registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) had issued a show-cause notice on 29.10.2025, to which the assessee replied. However, the CIT(E) rejected the application, observing that the assessee had not furnished full and complete details. The assessee contended that the CIT(E) did not duly consider the extensive details provided and should have sought further clarification instead of rejecting the application on a general observation.

What were the issues?

1. Whether the rejection of the application for registration under Section 12AB of the Income Tax Act, 1961, by the Commissioner of Income Tax (Exemption) was justified on the grounds of non-furnishing of full and complete details, without identifying specific deficiencies or calling for further clarification? Assessee's Contention: The assessee argued that the Commissioner of Income Tax (Exemption) had not duly considered the extensive sub-headings, clarifications, and programmatic details furnished during the processing of the application. The assessee contended that if any further details were required, the CIT(E) should have requested them rather than rejecting the application based on a general observation of incomplete details. The assessee relied on principles of natural justice and fair play. Revenue's Contention: The Revenue, through the learned Departmental Representative, supported the order of the Commissioner of Income Tax (Exemption).

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI INTURI RAMA RAO

Hearing: 22.09.2026Pronounced: 22.09.2026

PER GEORGE GEORGE K, VICE PRESIDENT:

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Chennai dated 26.06.2026, rejecting Form No.10AB filed for seeking registration u/s.12AB of the Income Tax Act, 1961 (hereinafter the ‘Act’). Environmental Social Governance & Co. Secretary Foundation

2.

At the very outset, we notice that the CIT(E) issued a show-cause notice dated 29.10.202

The order continues below.

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