ITAT Remands Section 12AB Registration Application for Fresh Consideration
The Income Tax Appellate Tribunal (ITAT), Chennai Bench, has given relief to Reddiyar Trust by sending its application for registration under Section 12AB of the Income Tax Act back to the tax authorities for fresh consideration.
The trust had challenged an order passed by the CIT(E), Chennai, who had rejected its Form 10AB application on the ground that the required documents had not been submitted.
Reddiyar Trust is a public charitable trust established through a Trust Deed dated January 29, 2016. It had earlier received registration under Section 12AA of the Income Tax Act in December 2016. The trust was later granted registration under Section 12A in the new registration system via Form 10AC.
The trust had earlier filed Form 10AB on September 29, 2025, for its regular registration under Section 12AB, since the earlier registration had expired. It also applied for Section 80G approval at the same time.
Before the ITAT, the trust argued that it had already submitted all the relevant documents during the proceedings for its Section 80G application. These included the Trust Deed, Supplementary Deed, registration certificates, financial statements, audit reports and a note explaining its activities.
The trust said that since the 12AB and 80G applications were being considered simultaneously by the same authority, it had genuinely believed that the documents submitted in the 80G proceedings would also be considered for the 12AB application.
However, the Commissioner rejected the 12AB application for non-submission of documents. The trust argued that the documents were already available in the Income Tax Department’s records and that there had been no change in its objectives or activities. It, therefore, requested ITAT to drop the rejection and direct the department to reexamine the application on merits.
After hearing both the sides, the ITAT noted that the trust was earlier registered under Section 12AA and then migrated to the new registration regime. The Tribunal also noted the submission of the trust that the relevant documents had been already submitted in the parallel 80G proceedings.
In the interest of justice the ITAT set aside the order of the Commissioner and restored the matter for fresh consideration. The Commissioner has been directed to afford the trust a reasonable opportunity of being heard and thereafter decide its 12AB registration application in accordance with law.
The Tribunal also directed the trust to fully cooperate with the proceedings and provide any additional documents or information sought by the tax authorities.
The appeal was therefore allowed for statistical purposes.
Case citation: Reddiyar Trust Vs ITO (ITAT Chennai); ITA No.: 2654/CHNY/2026; 06/08/2026.
