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Facts
The assessee, a religious trust, applied for registration under Section 12AB(1)(b)(ii) and Section 80G of the Income-tax Act. The CIT(E) rejected the application without granting an opportunity of being heard, stating the assessee failed to furnish documents within the stipulated period.
Held
The Tribunal held that the rejection of registration by the CIT(E) was not justified because the assessee was not given an adequate opportunity of being heard. The issues were restored to the file of the CIT(E) for a decision after proper hearing and verification of documents.
Key Issues
Whether the CIT(E) was justified in rejecting the registration applications without affording an adequate opportunity of being heard to the assessee.
Sections Cited
12AB, 80G
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Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: SHRI MAHAVIR SINGH & SHRI NAVEEN CHANDRA
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-
Both the above captioned separate appeals by the assessee are preferred against the order of the ld. CIT(E), Delhi dated 11.11.2024 rejecting the application for registration u/s 12AB(1)(b)(II)(B) and u/s 80G of the Income-tax Act, 1961 [the Act, for short].
Since both the captioned appeals were heard together and pertain to same assessee, they are disposed of by this common order for the sake of convenience and brevity.
Representatives of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules.
Briefly stated the facts of the case are that the assessee is a religious trust which was formed to promote ideals of Lord Shree Ram Ji and to establish temples, Satsang Bhawan and Yoga Center all over India, the registered office of which is in New Delhi.
The assessee filed Form 10AB and applied for registration u/s 12AB(1)(b)(ii) and registration u/s 80G of the Act. The ld. CIT (Exemption) issued notices and asked to furnish several documents to which the assessee filed its reply by furnishing the documents as called for.
CIT (Exemption) rejected the registration applications vide order dated 11.11.2024 without granting any opportunity of being heard to the & 3639/DEL/2025 Shree Ram Sewa Sadan Trust assessee. The assessee again applied for registration which was rejected.
The assessee is aggrieved and has come in appeal before us and submitted that the ld. CIT(E) did not consider the reply of the assessee nor its annexures and passed order. The ld. CIT(A) was not right in rejecting the applications of the assessee for registration 12AB(1)(b)(ii) and u/s 80G of the Act on the ground that the assessee was not able to furnish their replies to the notices within the stipulated period.
Per contra, the ld. DR relied upon the orders of the ld. CIT(E).
We have given a thoughtful consideration to the order of the CIT (Exemption). We find that the assessee has filed several documents and evidences before us, which were filed by the assessee before the CIT(E), to establish the genuineness of the activities of the trust. The rejection of grant of registration by ld. CIT(A) is not justified as the ld. CIT(E) has not given adequate opportunity of being heard to the assessee which is apparent from the record. Accordingly, in the interest of justice and fair play, we restore the issues to the file of the ld. CIT(E). The assessee is directed to furnish the necessary documents for verification and the ld. & 3639/DEL/2025 Shree Ram Sewa Sadan Trust CIT(E) is directed to examine the same and decide the issues as per the provisions of law after affording reasonable and sufficient opportunity of being heard to the assessee.
In the result, both appeals of assessee in ITA No. 3638/DEL/2025
The order is pronounced in the open court on 22.08.2025.