THE BLIND SOCIETY ,OOTACAMUND vs. CIT (EXEMPTION), CHENNAI

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ITA 3386/CHNY/2026Status: DisposedITAT Chennai03 November 2026AY 2025-264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection of the assessee's applications for registration under Section 12AB of the Income Tax Act, 1961, was primarily based on non-compliance with notices and non-furnishing of documents, without any finding on the merits of the trust's objects or the genuineness of its activities. The Tribunal emphasized that registration under Section 12AB has significant civil consequences, and therefore, the authority must afford an effective and meaningful opportunity to the assessee to furnish documents and explain its case, adhering to the principles of natural justice. Consequently, the Tribunal set aside the impugned orders and restored the matters to the file of the CIT(E) for fresh adjudication. The CIT(E) was directed to re-examine the applications after providing an adequate and effective opportunity of hearing to the assessee, who was also directed to cooperate fully. The Tribunal explicitly stated that no opinion was expressed on the merits of the assessee's entitlement to registration, leaving all issues open for the CIT(E)'s consideration.

What were the facts?

The assessee, The Blind Society, filed an appeal against the order of the Commissioner of Income-tax (Exemptions), Chennai (CIT(E)) dated 17.03.2026. The CIT(E) had rejected the assessee's applications filed in Form No. 10AB seeking registration under Section 12AB of the Income Tax Act, 1961, for the assessment year 2025-26. The rejection was based on the assessee's alleged non-compliance with notices and failure to furnish required documents, including the trust deed, financials for the previous three years, a note on activities, and a copy of approval obtained under the old regime. The assessee had filed the applications on 29.09.2025. There was a delay of 5 days in filing the present appeal, which was condoned by the Tribunal.

What were the issues?

1. Whether the rejection of the assessee's application for registration under Section 12AB of the Income Tax Act, 1961, solely on the grounds of non-compliance with notices and failure to furnish documents, without examining the merits of the trust's objects and genuineness of its activities, is sustainable in law? Assessee's Contention: The assessee argued that the rejection was based on procedural grounds without a proper examination of the substantive aspects of the application. The principles of natural justice require an effective opportunity to be provided before an adverse order is passed. Revenue's Contention: The revenue, through the CIT(E)'s order, contended that the assessee failed to provide the necessary documents as requested in the notices, leading to the rejection of the application.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI INTURI RAMA RAO & SHRI MANU KUMAR GIRI

Hearing: 25.08.2026

PER MANU KUMAR GIRI, JM:

This captioned appeal, filed by the assessee, arises out of the order of the ld. Commissioner of Income-tax (Exemptions), Chennai [CIT(E)] dated 17.03.2026, whereby the applications filed by the assessee in Form No. 10AB seeking registration u/s. 12AB of the Income Tax Act, 1961 was rejected.

2.

The Registry has noted a delay of 5 days in filing the present appeals. We have considered the condonation petition and affidavit filed by the assessee and find the reasons stated therein to The Blind Society Vs. CIT E constitute sufficient cause. Accordingly, the delay is condoned and both the appeals are admitted for adjudication.

3.

We have heard the rival submissions and perused the material available on record. The assessee had filed applications in Form No. 10AB on 29.09.2025 seeking registration u/s. 12AB of the Act. The ld. CIT(E) observed that certain documents, namely (1) Trust deed, (2) Financials for previous 3 years, (3) Note on activities & (4) Copy of approval 12A/12AA obtained under old regime i.e. prior to 01.04.2021 were required for examining the objects of the trust and the genuineness of its activities. Since, according to the Ld. CIT(E), the assessee did not comply with the notices issued and failed to furnish the requisite documents, both the applications came to be rejected.

4.

From a perusal of the impugned orders, we find that the ld. CIT(E) has rejected the applications primarily on the ground of non- compliance with the notices issued and non-furnishing of the documents considered necessary for examination of the applications. No finding has been recorded on the merits of the objects of the trust or the genuineness of its activities after examining the relevant materials. The rejection is thus founded solely on the alleged non-compliance.

5.

In our considered opinion, the issue involved relates to grant of registration u/s. 12AB, which have significant civil consequences for the assessee. Therefore, before rejecting such applications, the authority is expected to afford an effective and meaningful opportunity to the applicant/assessee to furnish the requisite documents and explain its case. The principles of natural justice

6.

Considering the facts and circumstances of the case, we are of the view that the ends of justice would be met if the impugned orders are set aside and the matters are restored to the file of the ld. CIT(E) for fresh adjudication. Accordingly, the impugned order dated 17.03.2026 passed u/s. 12AB is hereby set aside. The ld.CIT(E) shall re-examine the applications afresh in accordance with law after providing adequate and effective opportunity of hearing to the assessee. The assessee shall also extend full cooperation by furnishing all the documents, information and explanations that may be called for by the ld. CIT(E) without seeking unnecessary adjournments.

7.

We clarify that we have not expressed any opinion on the merits of the assessee's entitlement to registration u/s. 12AB. All issues are left open for consideration by the ld. CIT(E) in accordance with law.

8.

In the result, both the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on the 02nd day of November 2026 in Chennai. (इंतूरी रामा राव) (मनु कुमार िग"र) (INTURI RAMA RAO) (MANU KUMAR GIRI) लेखा सद*य/ACCOUNTANT MEMBER "या"यक सद*य/JUDICIAL MEMBER

SANDEE P KUMAR Date: 2026.11.06 09:55:10 +05'30' The Blind Society Vs. CIT E चे"नई/Chennai, +दनांक/Dated: 02nd November 2026. SNDP, Sr. PS

आदेश क ""त,ल-प अ.े-षत/Copy to: 1. अपीलाथ"/Appellant

2.

""थ"/Respondent 3. आयकरआयु"/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF

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