ST ELIAS HIGH SCHOOL ,KHAR WEST vs. COMMISSIONER OF INCOME TAX EXEMPTIONS MUMBAI , MUMBAI

Both the appeals pertain to the same assessee and arising from common fact related to the cancellation of application of registration u/s 12A and approval u/s 80G of the Act. So, for sake of convenience both the appeals are taken together, heard together and disposed of by a common order. ITA 6587/MUM/2026 is taken as a lead case, and decision rendered therein shall be applied mutatis mutandis to other appeal.

We heard the rival submissions and considered the documents available on record. The assessee is a charitable trust and filed application in Form No. 10AB u/s 12A(1)(ac)(ii) on dated 03.09.2025, seeking renewal of registration u/s 12AB of the Act. On verification of application in Form No. 10AB filed by the assessee, the Ld. CIT(E) has found that the documents required to accompanying the application are not furnished. Accordingly, the Ld. CIT(E) issued a notice dated 14.11.2025 and are directed to furnish all the relevant documents under Rule 17A(2) of the Income Tax Rules, 1963. As per the Ld. CIT(E), the assessee had not made any compliance against the said notice issued u/s 12A of the Act. Considering this, the Ld. CIT(E) rejected the application for renewal of registration u/s 12A of the Act. Being aggrieved, the assessee filed an appeal before us.

The Ld. AR argued that the assessee filed the application for seeking renewal of registration u/s 12AB of the Act. The Ld. CIT(E) had issued notice dated 14.11.2025 for requirement of documents under Rule 17A(2) of the Rules. The Ld. AR contended that the assessee is already registered u/s 12AA of the Act on dated 04.04.2022. The assessee is also registered under Maharashtra Public Trust Act, 1950. The Ld. AR further argued that without allowing a reasonable opportunity to the assessee, the Ld. CIT(E) had passed the order, which is violation of natural justice.

The Ld. DR argued and stands in favor of the order of the Ld. CIT(E).

In our considered view, we find that the assessee had already been granted registration under section 12AA of the Act dated 04.04.2022. A copy of the said registration certificate was duly attached with Form No. 10AB which is submitted before the Bench. Subsequently, the assessee filed an application seeking renewal of registration under section 12AB of the Act. The Ld. CIT(E) issued a notice under Rule 17A(2) of the Rules dated 14.11.2025. The Ld. AR claimed that no specific requirement is indicated by the Ld. CIT(E) in the its order in compliance of the said notice. However, without granting any further opportunity of hearing, the Ld. CIT(E) rejected the assessee's application for renewal of registration.

We find that the assessee was not afforded an adequate and reasonable opportunity to present its case before the Ld. CIT(E). Considering the principles of natural justice, we deem it appropriate to restore the matter to the file of the Ld. CIT(E) for fresh consideration after granting the assessee a reasonable opportunity of being heard. Needless to say, the assessee shall also remain diligent and extend necessary cooperation for expeditious disposal of the application. Accordingly, the matter relating to renewal of registration under section 12AB of the Act is restored to the file of the Ld. CIT(E) for fresh adjudication in accordance with law.

In the result, the appeals of the assessee bearing ITA No. 6587 & 6588/Mum/2026 are allowed for statistical purposes. Order pronounced in the open court on 05th day of October 2026.