SHREE KUNDRODI AATH KOTI NANI PAKSH STHANAKVASI SANGH,MUMBAI vs. ITO WARD 26(2)1, MUMBAI, MUMBAI

ITA 7122/MUM/2026Status: DisposedITAT Mumbai08 October 2026AY 2026-277 pages
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What were the facts?

The assessee, Shree Kundrodi Aath Koti Nani Paksh Sthanakvasi Sangh, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai Bench, against an order dated 01/03/2026 passed by the Learned Commissioner of Income Tax (Exemptions), Mumbai. The impugned order rejected the assessee's application for renewal of registration under Section 12AB of the Income-tax Act, 1961, filed in Form No. 10AB on 30/09/2025. The rejection was primarily due to the assessee's failure to furnish requisite documents and details called for by the CIT(E) within the stipulated time. The appeal was filed with a delay of one day, which the Tribunal condoned. The assessee contended that it was not granted a sufficient and effective opportunity to be heard, as only one notice was issued requiring compliance with 22 items within approximately four days, and the trustee responsible was elderly.

What did the Tribunal hold?

The Tribunal held that the application was rejected for non-compliance with a solitary opportunity afforded to the assessee. The Tribunal noted that proceedings for registration under Section 12AB require the CIT(E) to examine the objects, genuineness of activities, and other compliances. The impugned order itself stated that the CIT(E) could not arrive at the required satisfaction due to the absence of documents. Considering that only one effective opportunity was given, the Tribunal was of the view that granting one further effective opportunity would meet the ends of substantial justice. Accordingly, the Tribunal set aside the impugned order and restored the application to the file of the CIT(E) for fresh adjudication, directing the CIT(E) to grant a reasonable and effective opportunity of being heard and to decide the application in accordance with law after considering all furnished material. The assessee was also directed to cooperate and furnish details within the granted time. The Tribunal explicitly stated that it had not expressed any opinion on the merits of the assessee's eligibility for registration, leaving all issues open for the CIT(E)'s consideration.

What were the issues?

1. Whether the Learned CIT(Exem) erred in rejecting the Application for Approval/Registration filed U/s. 12A(1) of the IT Act, vide an Ex-Parte Order? 2. Whether the Learned CIT(Exem) erred in Law by passing the impugned Order without granting sufficient, reasonable and effective opportunity of being heard, to the Assessee, in violation of principles of natural justice? The assessee argued that the rejection was ex-parte and in violation of natural justice, as only one notice was issued with an unreasonably short period of four days to furnish 22 items. The assessee attributed non-compliance to the age of the trustee and lack of familiarity with the procedure, emphasizing that the non-compliance was not deliberate. The assessee prayed for one more effective opportunity. The revenue relied on the observations of the CIT(E) that the assessee failed to furnish the requisite documents and details.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1),Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: SMT. BEENA PILLAI, HON’BLE & SHRI JAGADISH, HON’BLE

Pronounced: 08/10/2026

PER SMT. BEENA PILLAI, JUDICIAL MEMBER:

Present appeal is filed by the assessee against the order dated 01/03/2026 passed by the Ld. CIT(E), Mumbai, whereby the application filed by the assessee in Form No.10AB seeking renewal of registration u/s. 12AB of the Income-tax Act, 1961 (“the Act”) came to be rejected. The impugned Form No.10AD rec

The order continues below.

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