FRAGRANCE & FLAVOURS ASSOCIATION OF INDIA,MUMBAI vs. CIT(EXEMPTIONS), MUMBAI, MUMBAI

The assessee has raised the following grounds of appeal:

The assessee had filed Form No. 10AB on 30.09.2025 seeking renewal of approval under section 80G of the Act. The Ld. CIT(E), while considering the application, noticed that the assessee had also applied for renewal of registration under section 12AB of the Act by filing Form No. 10AB on the same date. The application for registration under section 12AB came to be rejected by the Ld. CIT(E) vide order dated 27.02.2026. 4. The Ld. CIT(E) observed that section 80G(5)(i) requires, inter alia, that the institution or fund should be one to which the provisions of sections 11 and 12, or the other provisions specified therein, apply. Since the application of the assessee for registration under section 12AB had been rejected, the Ld. CIT(E) held that the requisite condition for approval under section 80G was not fulfilled. Consequently, the application filed by the assessee for renewal of approval under section 80G was rejected.

Aggrieved by the aforesaid order, the assessee is in appeal before us.

During the course of hearing, the learned Authorised Representative submitted that the rejection of the assessee’s application under section 80G is purely consequential to the rejection of its application for registration under section 12AB of the Act. He submitted that the appeal preferred by the assessee against rejection of registration under section 12AB, being ITA No. 4790/Mum/2026, had already been heard by the Bench on 10.07.2026, and the issue relating to registration under section 12AB was being restored to the file of the Ld. CIT(E) for fresh adjudication. The learned AR, therefore, submitted that, since the very foundation on which the application under section 80G had been rejected was being remitted for fresh consideration, the present appeal also deserves to be restored to the file of the Ld. CIT(E) for adjudication afresh.

The learned Departmental Representative raised no objection to the aforesaid prayer of the assessee and fairly submitted that the issue concerning approval under section 80G may also be restored to the file of the Ld. CIT(E).

We have heard the rival submissions and perused the material available on record. The limited issue before us is whether the rejection of the assessee’s application for approval under section 80G can survive independently when the underlying issue concerning registration under section 12AB is itself required to be examined afresh.

We find from the impugned order that the Ld. CIT(E) rejected the assessee’s application for approval under section 80G essentially on account of rejection of its application for registration under section 12AB. The relevant reasoning recorded by the Ld.

We further note that the assessee had challenged the rejection of its registration under section 12AB before the Tribunal in ITA No. 4790/Mum/2026. The said appeal was heard on 10.07.2026 and disposed vide orde dated 09.09.2026. The Co-ordinate Bench, after considering the submission that only one opportunity had been granted to the assessee and that the assessee had sought an adjournment but no further communication had been received, restored the matter to the file of the Ld. CIT(E) for adjudication afresh after providing adequate opportunity of hearing to the assessee.

The operative finding of the Tribunal in the connected appeal reads as under:

In view of the above, the very basis on which the assessee’s application for approval under section 80G came to be rejected is presently open for fresh adjudication before the Ld. CIT(E). The issue concerning approval under section 80G is, therefore, consequential to and dependent upon the determination of the assessee’s eligibility for registration under section 12AB. In these circumstances, adjudication of the present appeal independently at 5 Fragrance & Flavours Association of India this stage would neither be appropriate nor serve any useful purpose.

We, therefore, consider it just and proper to set aside the impugned order dated 27.02.2026 and restore the application of the assessee for approval under section 80G to the file of the Ld. CIT(E) for fresh adjudication in accordance with law, after the issue relating to registration under section 12AB is decided pursuant to the directions of the Bench in ITA No. 4790/Mum/2026. 14. The Ld. CIT(E) shall provide reasonable and adequate opportunity of hearing to the assessee and shall consider the application under section 80G afresh in the light of the outcome of the proceedings relating to registration under section 12AB and the material that may be placed on record by the assessee. We make it clear that we have not expressed any opinion on the merits of the assessee’s eligibility for approval under section 80G, and all issues are left open for consideration by the Ld. CIT(E) in accordance with law.

Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Mumbai गाड" फाईल / Guard file.

ABHINAV ANANT GAVANDE आदेशानुसार/BY ORDER, Date: 2026.10.13 स"ािपत "ित //// GAVANDE 15:47:23 +05'30' उप/सहायक पंजीकार ( Asst.