MAHAVIR PRASAD RADHEY SHYAM DIWAN CHARITABLE TRUST,DELHI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), DELHI

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ITA 338/DEL/2025Status: DisposedITAT Delhi23 July 2025Bench: SHRI YOGESH KUMAR U.S. (Judicial Member), SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Ι.Τ.Α. Νο. 337/DEL/2025 Ι.Τ.Α. No. 338/DEL/2025 Mahavir Prasad Radhey Vs Commissioner of Income ShyamDiwan Charitable Trust Tax (Exemption), Delhi A-2/191, First Floor, Janakpuri, Civic Centre, Minto Road, New DelhiPAN: AAHTM4351R New Delhi Appellant Respondent Assessee by Sh. Rakesh Kumar Khiwani, CA Revenue by Ms.Pooja Swaroop, CIT(DR) Date of Hearing 22/07/2025 Date of Pronouncement 22/07/2025 ORDER PER YOGE1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the Ld. CIT(E) should have provided an opportunity to the assessee to produce necessary documents and decide the application on its merit. Therefore, the Tribunal set aside the impugned orders and remanded the matter back to the Ld. CIT(E) for fresh adjudication.

What were the facts?

The assessee filed applications for registration under sections 12A(1)(ac)(iii) and 80G of the Income Tax Act, which were rejected by the Ld. CIT(E) without providing an opportunity to the appellant to produce further documents and submissions. The assessee contended that the orders were passed ex-parte.

What were the issues?

Whether the Ld. CIT(E) was justified in rejecting the applications for registration without affording an opportunity of being heard to the assessee?

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI YOGESH KUMAR U.S. & SHRI MANISH AGARWAL

Hearing: 22/07/2025Pronounced: 22/07/2025

Heard together (2 matters)

I.T.A. No. 337/DEL/2025
I.T.A. No. 338/DEL/2025

Read from the judgment's own cause title. This page is filed under one of them.

I.T.A. No. 338/DEL/2025 Mahavir Prasad Radhey Vs Commissioner of Income ShyamDiwan Charitable Trust Tax (Exemption), Delhi A-2/191, First Floor, Janakpuri, Civic Centre, Minto Road, New DelhiPAN: AAHTM4351R New Delhi Appellant Respondent Assessee by Sh. Rakesh Kumar Khiwani, CA Revenue by Ms.Pooja Swaroop, CIT(DR) Date of Hearing 22/07/2025 Date of Pronouncement 22/07/2025 ORDER

PER YOGESH KUMAR, U.S. JM:

1.

The above captioned appeals are filed by the Appellant against the orders of Ld. Commissioner of Income Tax (Exemptions) (‘Ld.

CIT(E)’ for short), New Delhi dated 21/11/2024 and 21/11/2024, wherein the application filed by the Appellant for grant of registration u/s 12A(1)(ac)(iii) and 80G of the Income Tax Act, 1961 ('Act' for short) have been rejected.

2.

The Ld. Counsel for the Assessee submitted that the orders impugned have been passed ex-parte, wherein Ld. CIT(E)has not verified the documents produced by the Appellant and without providing opportunity to the appellant to produce further documents and submissions the orders impugned has been passed. Thus, sought for allowing the Appeal.

3.

The Ld. Department's Representative vehemently submitted that the appellant has failed to substantiate the claim in support of the applications filed by the Appellant. Thus, relying on the orders of the Lower Authority, sought for dismissal of the Appeals.

4.

We have heard the parties and perused the material available on record. It can be seen form the order impugned, the Ld. CIT(E) has rejected the application for want of documents to substantiate the claim of the Appellant. Considering the fact that the Assessee is claimed to be conducting charitable activities, should have provided opportunity to the appellant to produce the documents and should have decided the application on its merit. Thus, we set aside the impugned orders of the Ld. CIT(E) and remand the matter to the file of Ld. CIT(E) with a direction to decide the applications afresh after providing opportunity of being heard to the Appellant. The Appellant is also at liberty to produce any/all documents in support of its claim.

5.

In the result, the appeals of the Assessee are partly allowed for statistical purpose.

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