ITAT Sets Aside Rejection of Charitable Trust’s Section 12AB Registration Application, Remands Case to CIT(E) for Fresh Consideration:

ITAT Sets Aside Rejection of Charitable Trust’s Section 12AB Registration Application, Remands Case to CIT(E) for Fresh Consideration

The ITAT set aside the rejection of Section 12AB registration application and remanded the matter to CIT(E) for fresh consideration, allowing the trust another opportunity to submit its Trust Deed and supporting documents.

ITAT Remits Section 12AB Registration Case to CIT(E) After Trust Deed Was Not Submitted

authorSaloni KumaridateOct 11, 2026
Last update on Oct 10, 2026

The Income Tax Appellate Tribunal (ITAT), Chennai Bench, has set aside the order rejecting Memon Charitable Trust’s application for registration under Section 12AB of the Income Tax Act, 1961. The tribunal restored the matter to the Commissioner of Income Tax (Exemptions) [CIT(E)], Chennai, for fresh consideration, allowing the trust another opportunity to submit the required documents.

Memon Charitable Trust came into existence on December 2, 2005. The trust was initially granted registration under Section 12A of the Income Tax Act on March 11, 2008. However, the Commissioner of Income Tax (Exemptions) rejected its Form No. 10AB application for registration under Section 12AB on March 17, 2026, because the trust failed to submit its Trust Deed.

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During the appeal before the ITAT, the trust’s counsel explained that the Trust Deed could not be submitted earlier because it had been misplaced. The counsel further submitted that the trust was now in a position to produce the trust deed along with the necessary supporting documents. Accordingly, the trust requested another opportunity to present its case before the tax authority.

After considering the submissions of both sides, the tribunal observed that the application had been rejected due to the non-submission of the Trust Deed. In the interest of substantial justice, the ITAT held that the trust deserved another opportunity to substantiate its claim.

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Accordingly, the tribunal held that "we set aside the impugned order of the CIT(E) and restore the matter to his file for fresh adjudication in accordance with law, after affording the assessee a reasonable opportunity of being heard and to furnish the necessary documents and evidences in support of its claim. The assessee is directed to co-operate with the proceedings and shall not seek unnecessary adjournment."

The ITAT allowed the appeal for statistical purposes in its order pronounced on October 8, 2026.

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
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