ROTARY CLUB OF THANE WEST CHARITY TRUST,THANE V. COMMISSIONER OF INCOME TAX (EXEMPTION), THANE

ITA 7270/MUM/2025

AI Insights

The case involves M/s. Rotary Club of Thane West Charity Trust appealing against the decisions of the Commissioner of Income Tax (Exemption), Pune, which rejected their applications for renewal of registration under sections 12AB and 80G of the Income Tax Act, 1961. The primary contention was the alleged failure of the assessee to provide necessary documentation due to technical glitches in the income tax portal, which the assessee claimed prevented them from receiving and responding to notices from the CIT(E). The Tribunal found merit in the assessee's arguments regarding the technical issues and directed a reevaluation of the applications.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 848842 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Mumbai
• Assessment Year: misc
• Appeal Filed On: 11-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMA SHANKAR PRASAD
• Assessee Lawyers: RAJESH ATHAVALE
• Keywords: Principle of natural justice
• Section: 12AA; 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI VIKRAM SINGH YADAV, AM AND MS. KAVITHA RAJAGOPAL, JM ITA No.7270/Mum/2025 (Assessment Year: 2026-27) & ITA No.7271/Mum/2025 (Assessment Year: 2026-27) M/s. Rotary Club of Thane West Charity Trust, TMA House, Near Petrol Pump, Wagle Estate, Thane (West), Maharashtra - 400 604 Vs. Commissioner of Income Tax (Exemption), PMT Building, Shankar Seth Road, Pune – 411 037 PAN:AAATR3890H (Appellant) : (Respondent) Assessee by : Shri Rajesh Athavale, AR Respondent by : Shri Umashankar Prasad, CIT-DR Date of Hearing : 21.01.2026 Date of Pronouncement : 24.03.2026 O R D E R Per Kavitha Rajagopal, JM: The captioned appeals are filed by the assessee challenging the order of the Learned Commissioner of Income Tax (Exemption), Pune [‘Ld. CIT(E)’ for short] passed u/s 12AB & 80G of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2026-27. 2. As the facts are identical, we hereby pass a consolidated order by taking ITA No.7270/M/2025 as the lead case. 3. The assessee has raised the following grounds of appeal: Printed from counselvise.com ITA No.7270/Mum/2025 & ors. M/s. Rotary Club of Thane West Charity Trust 2 “1. The learned CIT(E) erred in rejecting the application filed in Form 10AB under clause (ii) of Section 12A(1)(ac) of the Income Tax Act for permanent approval under Section 12AB of the Income tax Act. 2. The learned CIT(E) erred in cancelling the approval granted under Section 12AB with Section 12A(1)(ac) (i) of the Income tax Act. 3. The learned CIT(E) erred in observing that the appellant failed to furnish the details called for to verify the genuineness of activities of the trust and to verify the compliance to requirements of any other law for the time being in force by the trust / institution as are material for the purpose of achieving its objects. 4. Each one of the above grounds of appeal is without prejudice to the above. 5. The appellant reserves the right to add, alter or amend to the above grounds of appeal.” 4. Brief facts of the case are that the assessee trust is a charitable organization engaged in giving relief to poor, providing medical relief, education and advancement of other objects of general/utility and was registered u/s 12A of the Act dated 01.04.2002 as per the old regime and u/s 12A(1)(ac)(i) of the Act dated 28.05.2021 under the new regime for a period from A.Y. 2021-22 to 2025-26. The assesse trust had filed an application before the Ld. CIT(E) in Form 10AB under clause (ii) of section 12A(1)(ac) of the Act for renewal of registration u/s 12AB on 29.03.2025 and had filed information sought for by the Ld. CIT(E) from time to time. The Ld. CIT(E) vide order dated 16.09.2025 had rejected the assessee’s application thereby cancelling the regular registration granted on 28.05.2021 u/s 12A(1)(ac)(i) of the Act on the ground that the assessee has failed to furnish copy of regular registration u/s 12AA of the Act prior to 01.04.2021 inspite of giving sufficient opportunity thereby holding that the prerequisites for application u/s 12A(1)(ac)(ii) of the Act was not fulfilled. Printed from counselvise.com ITA No.7270/Mum/2025 & ors. M/s. Rotary Club of Thane West Charity Trust 3 5. Aggrieved, the assessee is in appeal before us, challenging the impugned order of the Ld. CIT(E). 6. The Learned Authorized Representative (“Ld. AR” for short) for the assessee contended that the assessee trust was facing technical glitches on the income tax portal while filing the submission in response to notices received from Ld. CIT(E) and due to the same reason the assessee had not received the last show cause notice dated 04.08.2025. The Ld. AR further contended that the assessee has not failed to submit the regular registration obtained by the assessee before the Ld. CIT(E) neither willfully nor deliberately but only due to genuine hardship caused due to the technical glitches that the assessee was unable to furnish the said copy. The Ld. AR further stated that the assessee has furnished copy of the registration certificate obtained as per old regime along with other details required as per the provisions of law and prayed that the same be considered. 7. The Learned Departmental Representative (“Ld. AR” for short), on the other hand, had nothing to controvert and relied on the order of the Ld. CIT(E). 8. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee’s application for registration in Form 10AB u/s 12A(1)(ac)(ii) of the Act was rejected by the Ld. CIT(E) for the reason that the assessee has failed to furnish copy of the regular registration which was obtained prior to 01.04.2021 thereby failing to comply to the notices issued by the Ld. CIT(E). It is also evident that the application of the assessee was rejected only on these technical issues and not on the merits of the application. We find force in the contention of the Ld. AR that the regular Printed from counselvise.com ITA No.7270/Mum/2025 & ors. M/s. Rotary Club of Thane West Charity Trust 4 registration certificate was not furnished due to technical glitches and considering the same, we deem it fit to extend the assessee with one more opportunity to furnish all relevant details along with documentary evidences before the Ld. CIT(E) by adhering to the principles of natural justice and in the interest of justice dispensation. The Ld. CIT(E) is directed to grant approval based on the submission and the evidences filed by the assessee in terms of the provisions of law and on merits of the case. We have not expressed an opinion on the merits of the case, which ought to be considered by Ld. CIT(E) denova. 9. In the result, the appeal filed by the assessee is hereby allowed for statistical purpose. ITA No.7271/M/2025 10. In the present appeal, the assessee has filed an application in Form 10AB seeking registration u/s 80G of the Act which was rejected by the Ld. CIT(E) on the ground that the assessee had filed application in Form 10AB belatedly after the prescribed time limit as per clause (ii) of the first proviso to section 80G(5) of the Act. As there was non- compliance on the part of the assessee to the notice issued by the Ld. CIT(E) the same was rejected and the approval granted on 01.10.2022 u/s 80G(5)(vi) read with clause (i) of first proviso to section 80G(5) of the Act was cancelled. 11. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee trust was registered u/s 80G(5)(iii) of the Act vide order dated 01.10.2022 under the new regime which was valid for A.Y. 2021-22 to 2025-26 and the assessee trust had filed application in Form 10AB under clause (ii) of first proviso to Printed from counselvise.com ITA No.7270/Mum/2025 & ors. M/s. Rotary Club of Thane West Charity Trust 5 section 80G(5) of the Act for renewal of registration on 29.03.2025. The assessee contends that the assessee did not receive the last show cause notice dated 30.07.2025 due to technical glitches and due to non-compliance for the said reason the Ld. CIT(E) rejected the application for the reason that the application for renewal of registration u/s 80G of the Act ought to have been submitted on or before 30.09.2024 but the same was filed only on 29.03.2025. The Ld. CIT(E) held that the assessee, inspite of the extended time limit by the CBDT, has failed to file Form 10AB within the prescribed time limit and hence rejected the assessee’s application. The assessee, on the other hand, relied on various decisions of the co-ordinate Benches which have held that the time limit prescribed for filing Form 10 or Form 10AB was only directory and not mandatory in nature. Having considered the rival submissions, we deem it fit to condone the delay in filing Form 10AB and hereby direct the Ld. CIT(E) to decide the issue in hand on the merits of the case by giving sufficient opportunity to the assessee trust and to decide the same in accordance with the provisions of law. 12. In the result, the appeal filed by the assessee is hereby allowed for statistical purpose. 13. In the result, both the appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the open court on 24.03.2026 Sd/- Sd/- (VIKRAM SINGH YADAV) (KAVITHA RAJAGOPAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated: 24.03.2026 * Kishore, Sr. P.S. Printed from counselvise.com ITA No.7270/Mum/2025 & ors. M/s. Rotary Club of Thane West Charity Trust 6 Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai Printed from counselvise.com "