FREDUN FOUNDATION,MUMBAI V. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

ITA 7187/MUM/2025

AI Insights

The case involves Fredun Foundation appealing against the decision of the Commissioner of Income Tax (Exemptions), who rejected the foundation's application for approval under section 80G(5) of the Income Tax Act, 1961. The rejection was based on a technical error in the application form, where the wrong clause was cited. The Tribunal found that the assessee was not given an opportunity to be heard, which violated the principles of natural justice. Consequently, the Tribunal decided to remand the case back to the CIT(E) for a fresh decision after allowing the necessary amendments to the application.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 846659 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Mumbai
• Assessment Year: 2025-2026
• Appeal Filed On: 07-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK PERAMPURNA
• Assessee Lawyers: PANKAJ SONI AW
• Keywords: Opportunity of being heard; Reasonable cause; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “F” BENCH : MUMBAI BEFORE SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 7187/Mum/2025 Assessment Year : 2025-26 Fredun Foundation, 26, Manoj Industrial Premises, G.D. Ambedkar Marg, Wadala, Mumbai-400031 PAN: AAATF5358G vs. Commissioner of Income Tax (Exemptions), Room No. 601, 6th Floor, Cumballa Hill MTNL TE Building, Peddar Road, Dr.Gopalrao Deshmukh Marg, Mumbai-400026. (Appellant) (Respondent) For Assessee : Shri Pankaj Soni a/w. Ms. Sofia Shanmugam i/b. Vaish Assoc. For Revenue : Shri Vivek Perampurna, CIT-DR (Virtually) Date of Hearing : 25-03-2026 Date of Pronouncement : 27-03-2026 ORDER PER VIKRAM SINGH YADAV, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions)-Mumbai [„Ld.CIT(E)‟], dated 31-08-2024, wherein the Ld.CIT(E) has rejected the assessee‟s application seeking approval u/s. 80G(5) of the Income Tax Act, 1961 („the Act‟). Printed from counselvise.com 2 ITA No. 7187/Mum/2025 2. At the outset, it is noted that there is a delay in filing the appeal as pointed out by the Registry. After hearing both the parties and perusing the affidavit placed on record, the contents of which have not been rebutted by the Revenue, we find that there was reasonable cause for the delay in filing the present appeal and hence, the delay is hereby condoned and appeal is admitted for adjudication. 3. During the course of hearing, the Ld.AR submitted that the assessee foundation was granted provisional registration vide order dt. 07-01-2022 for the period from 07-01-2022 to 31-03-2024. Thereafter, it applied for final approval in Form-10AB on 22-03-2024 within the stipulated time frame. However, the Ld.CIT(E) has rejected the assessee‟s application merely on the technical ground that while filing the application, the assessee has stated that the application has been filed under clause (ii) of First proviso to section 80G(5) of the Act instead of clause (iii) to First proviso to section 80G(5) of the Act. It was further submitted that before rejecting the application, the assessee was also not provided any opportunity of being heard thereby violating the principles of natural justice. It was also submitted that the assessee be allowed an opportunity to amend the inadvertent error which has crept in its application and the matter may be remitted to the file of the Ld.CIT(E) for adjudication on merits. 4. The Ld. DR is heard, who did not raise any specific objection where the matter is remitted to the file of the Ld.CIT(E). 5. After hearing both the parties and perusing the material available on record, we find that as far as grant of provisional registration is concerned, there is no dispute that the assessee was granted provisional registration Printed from counselvise.com 3 ITA No. 7187/Mum/2025 vide order dt. 07-01-2022 and thereafter, the assessee has moved an application seeking final approval. However, while submitting the application in the prescribed form, admittedly, the assessee has mentioned wrong provisions which the assessee now seeks to rectify. In the light of limited prayed advanced by the Ld.AR on behalf of the assessee, the matter is remanded to the file of the Ld.CIT(E) to allow the assessee to amend its existing application and to decide the same afresh as per law, after providing reasonable opportunity to the assessee. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 27-03-2026 Sd/- Sd/- [RAHUL CHAUDHARY] [VIKRAM SINGH YADAV] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 27-03-2026 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai Printed from counselvise.com "