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Facts
The assessee's applications for approval/registration under Sections 12AB and 80G of the Income Tax Act were rejected by the CIT(E). The rejection was primarily due to the assessee's failure to provide details as sought and to substantiate the genuineness of its charitable activities.
Held
The Tribunal restored the matter to the file of the CIT(E) for fresh adjudication on merits. It directed the CIT(E) to provide the assessee with reasonable opportunities to furnish necessary evidence to establish the genuineness of its activities.
Key Issues
Whether the CIT(E) was justified in rejecting the assessee's application for registration under Sections 12AB and 80G due to non-submission of documents and failure to substantiate the genuineness of its charitable activities.
Sections Cited
12AB(1)(b)(ii)(b), 80G(5)(iii)(b)(B), 12AB(1)(ii)(b), 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI
Before: SHRI YOGESH KUMAR U.S. & SHRI MANISH AGARWAL
O R D E R PER MANISH AGARWAL, AM: Both appeals are filed by the assessee against the separate orders of the Learned Commissioner of Income Tax (Exemptions), Delhi [‘CIT(E), in short] dated 24.12.2024 and 26.12.2024 for rejection of approval/registration u/s 12AB(1)(b)(ii)(b) and 80G(5)(iii)(b)(B) of the I.T. Act.
From the perusal of the order, it is seen that the assessee has filed Form 10B for granting registration u/s 12AB(1)(ii)(b) which stood rejected. Further, since registration u/s 12A was rejected, thus, the application for registration u/s 80G was also rejected.
& 1298 /Del/2025 Inside Me vs. CIT(E) 3. It is further seen that the Ld. CIT(E) has denied the registration u/s 12AB(1)(ii)(b) as the assessee has failed to provide the details as sought for time to time and thus, the Ld. CIT(E) was the opinion that the assessee has failed to substantiate the genuineness of its charitable activities.
Before us, the Ld. AR of the assessee submits that the assessee though was not able to file the details before the Ld. CIT(E), however, he requested that assessee may be granted one more opportunities to represent its cases before the Ld. CIT(E) to file the documentary evidences as required by Ld. CIT(E).
In reply, the Ld. CIT-DR supported the orders of Ld. CIT(E) and requested for the confirmation of the same.
We have heard the rival submissions and from the perusal of the orders of Ld. CIT(E), it is seen that the Ld. CIT(E) on various occasions asked the assessee to provide details to establish charitable nature. However, the assessee has failed to file any such information before the Ld. CIT(E), thus, the CIT(E) has denied the registration u/s 12A(1)(ac)(iii) of the Act.
Under these facts and circumstances of the case and in the interest of justice, the matter is restored back to the file of Ld. CIT(E) for fresh adjudication on merits in accordance with law after providing reasonable opportunities to the assessee. The Assesse is also directed to file the necessary evidences before the Ld. CIT(E) in order to establish the genuineness of its activity. With these
In the result, the both appeals of the assessee are allowed for statistical purposes. Order pronounced on 09.07.2025.