ITAT Restores 80G Approval Application to CIT(E) for Fresh Adjudication After Section 12AB Registration Rejection Was Set Aside
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has restored the application of Heena Sidhu Foundation for Sports seeking approval under Section 80G of the Income-tax Act to the CIT(E) for fresh consideration.
The foundation had challenged the order of the CIT(Exemptions), Mumbai, which had rejected its application filed in Form 10AB for approval under Section 80G. The rejection was based on the fact that the foundation’s separate application for registration under Section 12AB had also been rejected.
During the hearing, the Revenue pointed out that the ITAT had already dealt with the foundation’s Section 12AB registration issue in another appeal, ITA No. 4762/Mum/2026. In its order dated July 24, 2026, the Tribunal had set aside the rejection of the Section 12AB application and sent the matter back to the CIT (Exemptions) for fresh consideration.
The Tribunal noted that the Section 12AB application had originally been rejected mainly because Form 10AB was considered to have been filed late. The Tribunal had also observed that the foundation had received only one opportunity of hearing and that the CIT (Exemptions) had not examined whether the foundation’s objects were genuine or whether its activities were genuine.
Since the rejection of the 80G application was based entirely on the earlier rejection of the Section 12AB registration, the Tribunal held that the foundation’s 80G application also needed to be reconsidered.
The ITAT directed the CIT (Exemptions) to first decide the Section 12AB registration application afresh and then consider the 80G approval application in light of that decision. The Tribunal also directed that the foundation be given a reasonable opportunity to present its case.
The Tribunal said that, as far as possible, both matters could be considered together so that the 80G application is decided on the basis of the final position regarding the foundation’s Section 12AB registration.
Accordingly, the ITAT restored the 80G application to the CIT (Exemptions) for de novo adjudication. The appeal was allowed for statistical purposes.
Case Citation: Heena Sidhu Foundation For Sports Vs CIT(Exemption) (ITAT Mumbai); ITA No. 4763/Mum/2026; 30/09/2026.
