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Facts
The assessee, a charitable trust, sought regular approval under sections 12A and 80G of the Income Tax Act, 1961. The CIT(E) rejected the applications citing discrepancies and lack of timely filing, despite the assessee providing documents during the renewal process.
Held
The Tribunal held that the CIT(E) did not properly consider the merits of the case and the submitted documents. It found that the assessee was not given an adequate opportunity of being heard before the rejection.
Key Issues
Whether the CIT(E) was justified in rejecting the registration applications without affording adequate opportunity of being heard and without considering the merits of the case and submitted documents.
Sections Cited
12A, 80G, 10AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘C’ 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 23.06.2025 & 97/DEL/2025 Shree Guru Diksha Charitable Trust rejecting the application for renewal u/s 12A 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 charitable trust and came into existence on 25.07.2018 and obtained registration and provisional approval. The assessee filed Form 10AB of the Act seeking regular approval. 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.
Finding certain discrepancies, CIT (Exemption) rejected the registration applications vide order dated 27.11.2024.
& 97/DEL/2025 Shree Guru Diksha Charitable Trust 8. The assessee is aggrieved and has come in appeal before us and submitted that the ld. CIT(E) did not consider the merits of the case, reply of the assessee nor its annexures and passed order. The ld. CIT(E) was not right in rejecting the applications of the assessee for registration 12A and u/s 80G of the Act on the ground that the assessee has not applied within time frame. All the relevant documents were available with the CIT(E) which were submitted during the renewal process tow times earlier, which fact has been acknowledged by the ld. CIT(E) also.
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. CIT(E) is directed to examine the same and decide the issues as per the & 97/DEL/2025 Shree Guru Diksha Charitable Trust provisions of law after affording reasonable and sufficient opportunity of being heard to the assessee.
In the result, both appeals of assessee in are allowed for statistical purposes.
The order is pronounced in the open court on 22.08.2025.