SHRI DIGAMBER JAIN PANCHAYAT,DELHI vs. CIT EXEMPTION, DELHI

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ITA 910/DEL/2025Status: DisposedITAT Delhi20 August 2025AY 2021-225 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 did not file its submissions before the authority. Consequently, the application for registration was dismissed for non-compliance by the CIT(E). 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). A direction was given 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 for statistical purposes. The appeal filed by the assessee was allowed for statistical purposes.

What were the facts?

The assessee, Sh. Digamber Jain Panchayat, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Delhi (CIT(E)) dated 30.01.2024, for Assessment Year 2021-22. The assessee, a society registered in 1957, applied for registration under Section 12A(1)(ac)(ii) of the Income Tax Act, 1961, via Form No. 10AB on 19-07-2023. The society's objects include religious, social, and cultural upliftment, running a Jain temple, schools, dispensaries, and promoting brotherhood. The CIT(E) rejected the application, leading to the present appeal. The assessee's grounds of appeal allege that the CIT(E) erred in rejecting the registration without considering facts, material, submissions, and documentary evidence, wrongly classifying its activities as primarily religious, and acting arbitrarily.

What were the issues?

1. Whether the learned Commissioner of Income Tax (Exemption) erred in rejecting the registration under Section 80G without considering the facts and circumstances of the case, including documentary evidence submitted by the appellant? (Question of law and fact, concerning Section 80G). 2. Whether the learned Commissioner of Income Tax (Exemption) acted arbitrarily and in violation of natural justice by canceling the registration without properly considering all material facts and documents submitted by the appellant? (Question of law and fact). Assessee's contentions: The assessee argued that the CIT(E) rejected the registration application without considering the submitted documents, material placed before him, and detailed submissions, which included audited financial statements, activity reports, and beneficiary details. The assessee contended that its activities are charitable and benefit the general public, not primarily religious, and that ample evidence was provided to prove compliance with Section 80G. Revenue's contentions: The Revenue relied upon the orders of the lower authority.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A(1)(ac)(ii)

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 30.01.2024 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 u/s 80G 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 learned Commissioner of Income Tax ignored the detailed submissions made by the appellant, which included documentary evidence such as audited financial statements, activity reports, beneficiary details, and other supporting documents to substantiate the charitable nature of its operations.

4. The learned Commissioner of Income Tax wrongly held that the society is primarily engaged in religious activities, whereas the appellant has demonstrated with evidence that its activities are charitable and benefit the general public at large, irrespective of religion.

5. The learned Commissioner of Income Tax erred in holding that the appellant failed to provide necessary proof of charitable activities despite the submission of ample evidence to prove compliance with the conditions of Section 80G.

6. The learned Commissioner of Income Tax acted arbitrarily and in violation of natural justice by canceling the registration without properly considering all material facts and documents submitted by the appellant.

3.

The assessee is a society duly registered under the Societies Registration Act 1860 vide registration dated 28 November, 1957. Since inception the Society has been engaged in activities for the religious, social and cultural upliftment of the community and for the benefit of general public. At the time of incorporation, the main objects of the society were:

1. 1. To organize and celebrate religious, society and cultural functions and to take steps for imparting religious and moral training to children, youngsters and adults.

2. To construct and manage Jain temple (s) 3. To run school, library, regarding room dispensary, Dharamshala community hall, etc.

4. To create feelings of mutual love, brotherhood and to do other activities for the good of the Jain Community in particular and humanity in general. The assessee filed an application electronically on 19-07-2023in Form No. 10AB seeking registration u/s 12 A(1)(ac)(ii) of the Act. The Ld. CIT(E) rejected the application against which the assessee is in appeal before us.

3. The Ld. AR submitted that without considering the documents submitted by the assessee the Ld. CIT (E) dismissed the registration application of the applicant.

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 Ld. CIT(E), the assessee did not file his submissions before the authority, for which the application for grant of registration, was dismissed in non-compliance by the Ld. CIT(E).

6.

Since in the instant case the Ld. CIT(E) has dismissed the appeal in non-compliance 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 Ld. 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 accordingly allowed for statistical purposes.

7.

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

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