Loss of Old Section 12A Certificate Cannot Void an Active Section 12AB Registration: ITAT Mumbai
Case Background
Case Name: Bai Hirabai Manchersha Gilder Charity Trust Vs CIT (Exemptions) (ITAT Mumbai)
Appeal Number: ITA No. 3824/Mum/2026
Date of Order: 02.07.2026
Forum: Income Tax Appellate Tribunal, Mumbai Bench
Overview of the Dispute
The Income Tax Appellate Tribunal, Mumbai, was called upon to examine whether a charitable trust's renewal application under Section 12AB of the Income Tax Act, 1961 could be lawfully rejected on the sole ground that the trust was unable to produce its original registration certificate issued under the erstwhile Section 12A regime — particularly when the trust already held a valid and operative registration under Section 12AB granted in Form No. 10AC.
The assessee — Bai Hirabai Manchersha Gilder Charity Trust — had filed Form No. 10AB on 29.09.2025 under Section 12A(1)(ac)(ii) of the Income Tax Act, 1961, seeking renewal of its Section 12AB registration. The trust had been granted provisional-to-regular registration earlier in Form No. 10AC dated 06.04.2022, covering assessment years 2022-23 through 2026-27.
What the Commissioner of Income Tax (Exemptions) Decided
The Commissioner of Income Tax (Exemptions), Mumbai, issued a deficiency notice dated 13.12.2025, directing the assessee to submit all documents required under Rule 17A(2) of the Income Tax Rules, 1962. In response, the assessee filed its reply on 02.01.2026 and submitted several documents. However, the earlier registration certificate — whether under Section 12A, Section 12AA, or an approval under Section 10(23C) — obtained prior to 01.04.2021 under the erstwhile regime was not produced.
The CIT(E) took the view that, under the amended registration framework operative from 01.04.2021, trusts holding registrations under the old regime were required to apply for re-registration under Section 12AB via Form No. 10A under Section 12A(1)(ac)(i). The CIT(E) noted that Form No. 10AC had been issued by the Centralised Processing Centre, Bengaluru, without any human verification, and therefore, an assessee seeking renewal was obligated to independently demonstrate possession of a valid old-regime registration.
Since the original Section 12A certificate was not produced, the CIT(E) concluded that:
- The validity of Form No. 10AC dated 06.04.2022 could not be established.
- The existing
Section 12ABregistration "cannot be treated as valid in law." - The assessee did not fulfil the basic eligibility threshold for seeking renewal.
The CIT(E) accordingly rejected the application vide order dated 28.02.2026, while preserving the assessee's liberty to pursue statutory remedies.
Assessee's Contentions Before the Tribunal
The authorised representative of the assessee advanced the following submissions before the Tribunal: