HANUMANGARH JIWRAJKA CHARITABLE TRUST,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI

This appeal is filed by the assessee against the order passed by the Commissioner of Income Tax (Exemptions), Mumbai [hereinafter referred to as “CIT(A)”] dated 27.09.2025, in Form No. Hanumangarh Jiwrajka Charitable Trust 10AD, whereby the assessee’s application filed in Form No. 10AB seeking approval under section 80G of the Income-tax Act, 1961[hereinafter referred to as “the Act”], came to be rejected. Facts of the Case 2. The assessee is a charitable trust who filed an application in Form No. 10AB on 21.02.2025 under clause (iv)(B) of the first proviso to section 80G(5) of the Act seeking approval under section 80G of the Act. On verification of the application, it was noted by the CIT (Exemptions) that the application was not complete and that all the documents required under Rule 11AA(2) were not furnished. Accordingly, a notice was issued to the assessee calling upon the assessee to furnish the complete set of documents. In response to the said notice, the assessee made submissions on 16.07.2025 and 02.08.2025 and furnished the requisite details and documents. Thereafter, a further notice was issued calling for additional information such as proof of activities, proof of expenses, bank statements and explanation for mismatch of expenses. The CIT (Exemptions) recorded that no reply or response was submitted by the assessee. A reminder notice was thereafter issued requiring compliance with the earlier notice. The CIT (Exemptions) again recorded that no reply or response was submitted by the assessee. In the absence of compliance, he concluded that he was unable to arrive at a satisfactory conclusion on these parameters. Accordingly, the application for approval under section 80G was rejected on the ground of non-compliance of notices.

Your appellant craves leave to add, amend, alter or drop all or any of the above grounds of appeal

The learned Departmental Representative (DR) raised no objection to the aforesaid prayer of the assessee.

We have considered the rival submissions and perused the material available on record. It is evident from the order of the CIT (Exemptions) that the application under section 80G has been rejected solely on the ground of alleged non-compliance with the notices issued by his office. There is no adjudication on the objects of the trust or on the genuineness of its activities on merits. The assessee has specifically contended before us that the notices were sent to an unrelated e-mail ID and not to the registered e-mail ID of the assessee, as a result of which effective opportunity of being heard could not be availed. This assertion has not been controverted by the Revenue, and the learned DR has also raised no objection to restoration of the matter.

In our considered view, rejection of the application under section 80G without ensuring effective service of notices and without granting proper opportunity of hearing amounts to violation of the principles of natural justice. Since the order of the CIT (E) is founded purely on alleged non-compliance and not on examination of the claim on merits, the interest of justice would

Accordingly, we set aside the impugned order passed by the CIT (E) and restore the matter to his file with a direction to decide the assessee’s application under section 80G afresh in accordance with law, after granting due and effective opportunity of being heard to the assessee.

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