ASHA NIVAS SOCIAL WELFARE SOCIETY,CHENNAI vs. CIT EXMEPTIONS, CHENNAI

ITA 3019/CHNY/2026Status: DisposedITAT Chennai05 October 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection of the applications for registration under Section 12AB and approval under Section 80G, based on unreadable or corrupted documents and alleged non-compliance with notices, was not sustainable. The Tribunal found that there was no adjudication on the substantive aspects of the applications, such as the objects of the assessee, genuineness of its activities, and other relevant requirements. The Tribunal emphasized that where documents are unreadable or corrupted, the applicant should be given a reasonable and effective opportunity to furnish them afresh in a proper and verifiable form before an adverse order is passed. Citing the principles of natural justice, the Tribunal stated that the assessee must be afforded an adequate and meaningful opportunity to furnish requisite documents and present its case. Consequently, the impugned orders were set aside, and the applications were restored to the file of the CIT(E) for fresh consideration. The CIT(E) was directed to provide the assessee an adequate opportunity to be heard and to resubmit documents, and thereafter pass speaking orders. The Tribunal explicitly stated that it had not expressed any opinion on the merits of the assessee's claims for registration or approval.

What were the facts?

The assessee, Asha Nivas Social Welfare Society, filed two applications on 30.09.2025 in Form No. 10AB. One sought registration under Section 12AB of the Income Tax Act, 1961, under Section 12A(1)(ac)(ii), and the other sought approval under Section 80G of the Act, under Section 80G(5)(ii). The Commissioner of Income Tax (Exemptions) [CIT(E)] rejected both applications by separate orders dated 26.03.2026. The reason for rejection was that certain documents and details furnished by the assessee were unreadable, in an invalid format, or contained in corrupted files, preventing verification. The CIT(E) considered this a failure to comply with notices issued to the assessee.

What were the issues?

1. Whether the rejection of the assessee's applications for registration under Section 12AB and approval under Section 80G, solely on the grounds of unreadable/corrupted documents and alleged non-compliance with notices, is sustainable in law, considering the principles of natural justice? Assessee's Contention: The assessee argued that the rejection was based on technical deficiencies in the submitted documents, without a proper opportunity to rectify them. The assessee contended that principles of natural justice mandate affording a reasonable opportunity to resubmit documents in a verifiable format before passing an adverse order, especially when the applications have significant civil consequences. Revenue's Contention: The revenue, through the CIT(E)'s orders, contended that the assessee failed to comply with the notices by not furnishing the required documents in a readable and verifiable form, thus justifying the rejection of the applications.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12AB,Section 80G(5)(ii),Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: GAGAN GOYAL & SHRI MANU KUMAR GIRI

Hearing: 16.09.2026

PER MANU KUMAR GIRI, JM:

These two appeals filed by the assessee are directed against the separate orders passed by the learned Commissioner of Income Tax (Exemptions) [“ld. CIT(E)”], both dated 26.03.2026, whereby the application dated 30.09.2025 filed by the assessee in Form No. 10AB u/s. 12A(1)(ac)(ii) seeking registration u/s. 12AB of the Income Tax Act, 1961 (“the Act”), and the application dated 30.09.2025 filed in Form

ITA No. 3019 & 20/

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 12A(1)(ac)(ii)

All 679 judgments and leading authorities on Section 12A(1)(ac)(ii) →

Recent GST High Court judgments

Search GST case law →