VIMAL YATRA FOUNDATION,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI, MUMBAI

ITA 8407/MUM/2026Status: DisposedITAT Mumbai08 October 2026AY 2026-278 pages
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What did the Tribunal hold?

The Tribunal held that the rejection of the Section 12AB registration application was primarily due to non-compliance with notices and failure to furnish requisite documents, without any adjudication on the merits of the assessee's eligibility. The Tribunal noted that it is well-settled that an adverse order requires a reasonable and effective opportunity for the assessee to present its case. In the interest of substantial justice, the Tribunal decided to grant one more opportunity to the assessee. Consequently, the impugned order rejecting the Section 12AB registration was set aside, and the application was restored to the file of the Ld. CIT(E) for de novo adjudication, with a direction for the assessee to cooperate and furnish all required documents. The Tribunal explicitly stated that no opinion was expressed on the merits of the assessee's entitlement. Regarding the Section 80G approval, the Tribunal observed that its rejection was consequential to the rejection of the Section 12AB registration. Since the Section 12AB order was set aside, the consequential order for Section 80G could not survive independently. Therefore, the impugned order rejecting the Section 80G approval was also set aside and restored to the file of the Ld. CIT(E) for fresh adjudication, to be considered consequentially upon the adjudication of the Section 12AB application.

What were the facts?

The assessee, Vimal Yatra Foundation, filed applications for registration under Section 12AB and approval under Section 80G of the Income-tax Act, 1961, on November 18, 2025. The Commissioner of Income Tax (Exemptions), Mumbai (CIT(E)), rejected both applications by orders dated June 27, 2026. The rejection of the Section 12AB registration was based on the CIT(E)'s observation that the application was incomplete and requisite documents were not furnished, despite notices issued on May 13, 2026, and subsequently. The rejection of the Section 80G approval was consequential to the rejection of the Section 12AB registration. The assessee appealed these orders to the Income Tax Appellate Tribunal (ITAT), Mumbai Bench, for the assessment year 2026-27.

What were the issues?

1. Whether the rejection of the application for registration under Section 12AB of the Income-tax Act, 1961, by the Ld. CIT(E) was valid, considering the assessee's contention that it was passed ex parte and without adequate opportunity, thereby violating principles of natural justice? 2. Whether the rejection of the application for approval under Section 80G of the Income-tax Act, 1961, by the Ld. CIT(E) was valid, given that it was based on the rejection of the Section 12AB registration? Assessee's Contention: The assessee argued that the impugned orders were passed ex parte and that it did not receive an adequate and effective opportunity to present its case. The assessee expressed willingness to furnish all required documents and explanations if granted another opportunity, praying for the matter to be restored to the Ld. CIT(E) for fresh adjudication. Revenue's Contention: The judgment does not record any specific arguments presented by the revenue before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

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Heard together (2 matters)

ITA 8407/MUM/2026
ITA 8408/MUM/2026

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आयकर अपीलीय अधिकरण, म ुंबई पीठें, म ुंबई INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI BENCH: C BEFORE SMT. BEENA PILLAI, HON’BLE JUDICIAL MEMBER AND SHRI JAGADISH, HON’BLE ACCOUNTANT MEMBER ITA 8407/MUM/2026 (निर्धारण वर्ा/Assessment Year: 2026-27) VIMAL YATRA FOUNDATION CIT (EXEMPTIONS), MUMBAI 1ST FLOOR VIMAL VILLA, PRANPE SCHEME RD NO. 3, 601, 6TH FLOOR, SUNCITY PARLE MUMBAI - CUMBALLA HILL, MTNL TE 400057, MUMBAI-400057, MUMBAI -400026 MUMBAI-400026, MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

PAN of Assessee: AADTV0328D

अपीलधर्थी द्वारा/Appellant represented by: Shri Tanmay Phadake, CA Shri Srinivasa Rao Vona, प्रत्यर्थी द्वारा/Respondent represented by: CIT D/R (virtually appeared)

ITA 8408/MUM/2026 (निर्धारण वर्ा/Assessment Year: 2026-27) VIMAL YATRA FOUNDATION CIT (EXEMPTIONS), MUMBAI 1ST FLOOR VIMAL VILLA, PRANPE SCHEME RD NO. 3, 601, 6TH FLOOR, SUNCITY PARLE MUMBAI - CUMBALLA HILL, MTNL TE 400057, MUMBAI-400057, MUMBAI -400026 MUMBAI-400026, MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respon

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