SHRI DIGAMBER JAIN SAMAJ KASAN(REGD),DELHI vs. CIT EXEMPTION, DELHI

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ITA 906/DEL/2025Status: DisposedITAT Delhi20 August 2025AY 2021-224 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that it is an admitted fact that despite opportunities granted by the CIT(E), the assessee filed only partial submissions. Consequently, the appeal was dismissed by the CIT(E). However, the Tribunal found that the CIT(E) had dismissed the appeal without considering the documents submitted by the assessee. Therefore, considering the totality of the facts and circumstances and in the interest of justice, the Tribunal deemed it proper to restore the issue to the file of the CIT(E). The CIT(E) was directed to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per facts and law. The assessee was also directed to appear before the CIT(E) and cooperate in the proceedings. The grounds raised by the assessee were allowed. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Shri Digamber Jain Samaj (Regd), filed an appeal against the order dated 31.12.2024 passed by the Commissioner of Income Tax (Exemption), Delhi (CIT(E)). The assessee, incorporated in 1997, had obtained provisional registration under Section 12A(1)(ac)(vi) of the Income Tax Act, 1961, for AY 2021-22 to AY 2023-24. The assessee applied for regular registration under Section 12A(1)(ac)(iii). The CIT(E) issued a questionnaire, to which the assessee provided partial replies. After considering these replies, the CIT(E) rejected the registration application and cancelled the provisional registration. The assessee appealed this order to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the learned Commissioner of Income Tax (Exemption) erred in rejecting the registration application without considering the facts and circumstances of the case, and arbitrarily ignoring the documentary evidence, submissions, and explanations provided by the appellant, thereby violating the principles of natural justice, as contended by the assessee? 2. Whether the learned Commissioner of Income Tax (Exemption) acted in violation of the principles of natural justice by canceling the 12A registration without properly considering the submissions and documents submitted by the appellant, as contended by the assessee? 3. Whether the learned Commissioner of Income Tax (Exemption) has unjustly deprived the appellant of the rightful exemption under Section 12A, which has been duly granted and complied with over the years, as contended by the assessee? Assessee's Contention: The learned Assessing Officer (AR) submitted that the CIT(E) dismissed the appeal without considering the documents submitted by the assessee to substantiate compliance with Section 12A requirements and to establish charitable activities. The assessee relied on the fact that they had filed documents to prove their charitable activities. Revenue's Contention: The learned Departmental Representative (DR) relied upon the orders of the lower authority.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E”, DELHI

Before: SH. S. RIFAUR RAHMAN & SH. SUDHIR KUMAR

For Respondent: Ms. Amisha S. Gupt, CIT DR
Hearing: 14/08/2025Pronounced: 20/08/2025

Date of hearing: 14/08/2025 Date of Pronouncement: 20/08/2025 ORDER

PER SUDHIR KUMAR, JUDICIAL MEMBER:

1. This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as “CIT(E)”] vide order dated 31.12.2024 pertaining to A.Y. 2021-22.

2. The assessee has raised the following grounds in appeal:

1.

The learned Commissioner of Income Tax has grossly eared in rejecting the registration without considering the facts and circumstances of the case.

2.

The learned Commissioner of Income Tax has not considered the material place before him during the proceedings.

3. the CIT(E) arbitrarily ignored the documentary evidence, submissions, and explanations provided by the appellant, which were sufficient to prove compliance with statutory requirements.

4 the CIT(E) acted in violation of the principles of natural justice by canceling the 12A registration without properly considering the submissions and documents submitted by the appellant.

5. the CIT(E) has unjustly deprived the appellant of the rightful exemption under Section 12A, which has been duly granted and complied with over the years.

6.The appellant craves leave to add, amend, alter or delete

3. The assessee is a society incorporated on October 09,1997. The applicant has obtained provisional registration vide CPC order No. AASTS0788FE20206 issued for the period from AY2021-22 to AY2023-24 under Sub clause (vi) of clause (ac) of sub section (1) of section 12A of the Income Tax Act 1961(in short “the Act”). The assessee applied for the regular registration u/s 12A (10 (ac) (iii) of the Act. Ld. CIT(E) issued the questionnaire to the assessee. In the compliance of the notice the assessee partly furnished the reply. After considering the reply submitted by the assessee the Ld. CIT(E) rejected the registration application and cancelled the provisional registration of the assessee. Aggrieved the order of the Ld. CIT(E) the assessee filed the appeal before the Tribunal.

3.

The Ld. AR submitted that without considering the documents submitted by the assessee the Ld. CIT (E) dismissed the appeal of the assessee. to substantiate the compliance with the requirements of Section 12A. He further submitted that the assessee has filed the documents to establish the fact the assessee is doing the charitable activities.

4.

The Ld. DR has relied upon the orders of the lower authority.

5.

We have heard the rival contentions and perused the material available on record. It is an admitted fact that despite opportunities granted by CIT(E) the assessee filed the partly submissions before the authority, for which the appeal was dismissed by the Ld. CIT(E).

6.

Since in the instant case the CIT(E) has dismissed the appeal without considering the documents submitted by the assessee therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(E) with a direction to grant one final opportunity to the assessee to substantive its claim and decide the issue as per fact and law. The assessee is also directed to appear before the CIT(E) and co- operate in the proceedings. The grounds raised

by the assessee are allowed.

7. In the result, the appeal filed by the assessee is allowed for statistical purpose.

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