Charitable Trust Cannot Lose Section 12AB Registration and Section 80G Approval for Non-Compliance When Documents Were Actually Filed: ITAT Bangalore

Case Background

Case Name: Anasuya Mudde Gowda Charitable Trust Vs CIT (Exemptions) (ITAT Bangalore)

Court: Income Tax Appellate Tribunal, Bangalore

Appeals: ITA No. 363/Bang/2026 and ITA No. 352/Bang/2026

Subject Matter: Rejection of applications for regular registration under Section 12AB of the Income Tax Act, 1961 and final approval under Section 80G(5) of the Act

Overview of the Dispute

A significant ruling has emerged from the Bangalore bench of the Income Tax Appellate Tribunal (ITAT) concerning the procedural fairness expected of tax authorities while adjudicating applications filed by charitable trusts seeking permanent registration and donation-related approval under the Income Tax Act, 1961. The Tribunal set aside rejection orders passed by the CIT (Exemptions), Bengaluru, after finding that those orders were factually incorrect and contrary to the material placed on record.

The case arose from the applications filed by Anasuya Mudde Gowda Charitable Trust — a trust established by way of a deed of trust dated 28.04.2003 — which had approached the CIT (Exemptions) for conversion of its provisional status into regular registration under Section 12AB and final approval under Section 80G. The trust's core objects include providing relief to the economically weaker sections of society, extending medical assistance, and promoting education among the general public, without any bias based on caste, community, or religion.

Provisional Registration and Approval History

The assessee trust had already secured provisional recognition from the tax authorities prior to the present applications:

  • **Provisional Registration under Section 12A😗* Granted on 24.03.2022, vide Unique Registration Number (URN) AAATA9014AE20032, effective from AY 2022-23 to AY 2026-27, under sub-clause (i) of clause (ac) of sub-section (1) of Section 12A of the Income Tax Act, 1961.

  • **Provisional Approval under Section 80G😗* Granted on 24.03.2022, vide Unique Registration Number (URN) AAATA9014AF20105, effective from AY 2022-23 to AY 2026-27, under clause (i) of the first proviso to sub-section (5) of Section 80G of the Act.

With the expiry of the provisional period approaching, the trust took timely steps to regularise its status.

Applications Filed for Regular Status

On 16.06.2025, the assessee trust filed separate applications in Form 10AB before the CIT (Exemptions), Bengaluru, seeking:

  1. Regular registration under Section 12AB of the Income Tax Act, 1961
  2. Final approval under Section 80G of the Act

These applications were filed within the prescribed timelines and in the correct format as mandated under the law.

Orders Passed by CIT (Exemptions) — The Rejection

The CIT (Exemptions), Bengaluru passed two separate rejection orders on 19.12.2025, bearing the following references:

  • DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1083868283(1) — rejecting the application for registration under Section 12AB
  • DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1083868371(1) — rejecting the approval under Section 80G(5)

The common ground for rejection in both orders was that:

The assessee had neither responded to the notices issued by the authority, nor appeared before the proceedings, nor submitted the necessary documents and details required to establish the genuineness of its charitable activities and compliance with the conditions prescribed under the Act.