GULABBEN KANTILAL GORADIA CHARITABLE TRUST,MUMBAI vs. RIDDHI MISHRA, CIT(EXEMPTIONS), MUMBAI

ITA 9016/MUM/2026Status: DisposedITAT Mumbai28 September 2026AY 2026-20274 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the learned CIT(Exemptions) had noted the filing of the updated ITR-5 returns. The Tribunal found that the mere fact that the updated returns were not yet processed under Section 143(1) could not be a valid reason for rejecting the application for registration, as the processing of returns is not within the assessee's control. The Tribunal agreed with the assessee's submission that the error was inadvertent and had been rectified. Citing the decision of the Pune Bench in Akshar Sangeet Foundation, where a similar situation led to the application being remanded, the Tribunal allowed the appeals. The impugned orders were set aside, and the applications for registration under Section 12A and approval under Section 80G were restored to the file of the learned CIT(Exemptions) for decision on merits, with directions for the assessee to cooperate and be afforded an adequate opportunity of being heard. No issue was expressly left undecided.

What were the facts?

The assessee, Gulabben Kantilal Goradia Charitable Trust, incorporated on 08.06.2010, filed applications for registration under Section 12A(1)(ac)(vi)(B) and approval under Section 80G(5)(iv)(B) of the Income Tax Act, 1961, on 30.12.2025 and 31.12.2025, respectively, before the learned CIT(Exemptions). The CIT(Exemptions) noted that the Trust had claimed exemption by filing ITR-7 for Assessment Years (AYs) 2022-23, 2023-24, and 2024-25 prior to applying for registration. This was found to be in violation of Section 12A(1)(ac)(vi)(B), which requires that no exemption be claimed in preceding years. The Trust submitted that it had inadvertently filed ITR-7 and had since filed revised ITR-5 returns using ITR-U and paid the consequential tax and interest. However, the CIT(Exemptions) rejected the applications, stating that the updated ITR-5 returns were yet to be processed under Section 143(1). The appeals are against these rejection orders.

What were the issues?

1. Whether the learned CIT(Exemptions) was justified in rejecting the application for registration under Section 12A(1)(ac)(vi)(B) of the Act, on the ground that the assessee had claimed exemption by filing ITR-7 for preceding assessment years, despite the assessee subsequently filing revised ITR-5 returns and paying the consequential tax and interest. 2. Whether the learned CIT(Exemptions) was justified in refusing approval under Section 80G(5)(iv)(B) of the Act on similar grounds. Assessee's Contentions: The assessee argued that the filing of ITR-7 was an inadvertent error, which was rectified by filing revised ITR-5 returns through ITR-U, and the consequential tax and interest were paid. The assessee contended that the rejection of the application solely because the revised returns were not yet processed under Section 143(1) was not justified, as the processing of returns is not within the assessee's control. The assessee relied on the decision of the Pune Bench of the Tribunal in Akshar Sangeet Foundation (ITA Nos. 2048 & 2049/PUN/2025) where a similar application was restored to the file of the CIT(Exemptions). Revenue's Contentions: The learned DR submitted that an appropriate order be passed.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(vi)(B),Section 80G(5)(iv)(B),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “G”, MUMBAI

Before: Justice (Retd.) C V Bhadang & Shri Prabhash Shankar

For Appellant: Shri Premal Gandhi
For Respondent: Shri Basavaraj Hiremath- CIT DR
Hearing: 28.09.2026Pronounced: 28.09.2026

Per Justice (Retd.) C V Bhadang, President:

Both these appeals can be conveniently disposed off by this common order.

2.

The appellant is a Charitable Trust incorporated on 08.06.2010. The appellant filed an application (Form 10AB) on 30.12.2025 seeking registration u/s. 12A(1)(ac)(vi)(B) of the Income Tax Act, 1961 (‘Act’ for short) before the learned CIT(Exemptions). A separate application was also filed in Form 10AB on 31.12.2025 seeking approval u/s. 80G(5)(iv)(B) of the Act.

3.

The learned CIT(Exemptions) issued a notice dated 05.05.2026 asking for certain details/documents which were accordingly, furnished on 12.05.2026 and 12.06.2026.

The order continues below.

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