Loading judgment…
Facts
The assessee filed appeals against the order of the CIT(E) rejecting their application for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5). The rejection was based on the failure to provide required details and evidence regarding the genuineness of activities and charitable objects.
Held
The Tribunal decided to remit the issue back to the CIT(E) for a decision on merits, after allowing the assessee a proper opportunity to present documentary evidence and comply with the notices. The appeals were allowed for statistical purposes.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration and approval without proper consideration of evidence and opportunity to the assessee.
Sections Cited
12AA, 80G, 12A(1)(ac)(iii), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN
Order : 30.06.2025 O R D E R PER S.RIFAUR RAHMAN, ACCOUNTANT MEMBER : 1. These appeals are filed by the assessee against the order of ld. Commissioner of Income-tax (Exemption)/National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT (E)] dated 18.11.2024 for Assessment Year 2024-25 passed under section 12AA and 80G of the Income-tax Act, 1961 (for short ‘the Act’).
& 256/DEL/2025 2. At the time of hearing, it is brought to our notice that ld. CIT (Exemption) rejected the application filed in Form 10AB seeking for registration u/s 12A(1)(ac)(iii) as the assessee has failed to file details/information required by the notices referred at page 3 of his order in support of genuineness of the activities, charitable objects, commencement of the activities etc.. Further it is also brought to our notice that since, the application filed in Form 10AB seeking approval clause (iii) of first proviso to section 80G(5) is hereby rejected, therefore the provisional registration granted vide order dated 08.02.2022 issued for the period from A. Y. 2022-23 is also rejected.
After considering the submissions of both the parties, for the sake of overall justice, we are inclined to remit this issue back to the file of ld. CIT (E) to decide the issue on merit after getting proper documentary evidences from the assessee, after giving proper opportunity of being heard to the assessee. Further we direct assessee also to submit relevant information and complied to the notices issued by the lower authorities without seeking any adjournments. We are inclined to allow the appeal of the assessee without charging any penalty with the assurance of the assessee during the proceedings.