SISTERS OF OUR LADY OF MERCY SOCIETY,NAGERCOIL vs. CIT - EXEMPTION CHENNAI, CHENNAI

ITA 3168/CHNY/2026Status: DisposedITAT Chennai09 October 2026AY 2026-20274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(E) rejected the application for registration under Section 12AB primarily on the ground that the assessee had not furnished the registration under Section 12A of the Act obtained in the old regime. However, the Tribunal observed that the CIT(E) had not considered other details submitted by the assessee nor recorded any adverse findings regarding those details. The assessee's Authorized Representative requested one more opportunity to furnish the old Section 12A registration and any other required details. Considering the facts, the Tribunal decided to grant one more opportunity and remitted the matter back to the CIT(E) with a direction to consider the details already furnished and to call for any other necessary details to decide the issue in accordance with law. The assessee was directed to cooperate and submit the required details. Similarly, the rejection of approval under Section 80G was for the same reason. As the issue of Section 12AB registration was remitted, the Tribunal deemed it fit to remit the issue of Section 80G approval also back to the CIT(E) to be considered along with the Section 12AB registration, with similar directions. The appeals were allowed for statistical purposes.

What were the facts?

The assessee, Sisters of Our Lady of Mercy Society, filed applications for registration under Section 12AB and approval under Section 80G of the Income Tax Act, 1961, on 09.09.2025. The Commissioner of Income Tax (Exemptions) (CIT(E)) requested the trust deed, financials, note on activities, and a copy of the Section 12A approval obtained under the old regime. The CIT(E) rejected the applications, citing non-compliance with notices and failure to furnish all mandatory documents, specifically mentioning the absence of the old Section 12A approval. The assessee contended that they had submitted various details on 07.01.2026 in response to a notice dated 24.12.2025 and that the CIT(E) had not considered these or recorded adverse findings on them. The assessee requested one more opportunity to furnish the old Section 12A registration and any other required details.

What were the issues?

1. Whether the Commissioner of Income Tax (Exemptions) was justified in rejecting the assessee's application for registration under Section 12AB of the Income Tax Act, 1961, on the grounds of non-furnishing of mandatory documents, including the registration under Section 12A of the Act obtained in the old regime? (Question of law and fact, turning on Section 12AB(1)(b)). 2. Whether the Commissioner of Income Tax (Exemptions) was justified in rejecting the assessee's application for approval under Section 80G of the Income Tax Act, 1961, for similar reasons as the rejection of the Section 12AB registration? (Question of law and fact, turning on Section 80G). Assessee's contentions: The assessee argued that they had submitted various details on 07.01.2026 in response to a notice dated 24.12.2025. They claimed the CIT(E) did not consider these submissions or record any adverse findings on the furnished documents. The assessee requested a further opportunity to provide the old Section 12A registration and any other documents required. Revenue's contentions: The revenue, through the CIT(E)'s order, contended that the assessee failed to comply with notices and did not furnish all mandatory documents required for examining the objects and genuineness of activities, despite reasonable opportunities. The specific ground for rejection was the non-furnishing of the Section 12A registration under the old regime.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI GEORGE GEORGE KAND MS. PADMAVATHY.S

For Respondent: Mr. K. Jayaganesh, CIT

PER PADMAVATHY.S, A.M: These appeals by the assessee are against separate orders of the Commissioner of Income Tax (Exemptions), Chennai (in short "CIT(E)") both dated 29.03.2026 denying registration u/s. 12AB of the Income Tax Act, 1961 (in short "the Act") and approval u/s. 80G of the Act.

ITA Nos.3167 & 3168/Chny/2026 Sisters of Our Lady of Mercy Society :- 2 -:

2.

The assessee is a trust and filed the application for registration u/

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 12AB

All 5,972 judgments and leading authorities on Section 12AB →

Recent GST High Court judgments

Search GST case law →