S.S. JAIN SABHA (REGD.),DELHI vs. CIT (EXEMPTION), NEW DELHI

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ITA 1496/DEL/2025Status: HeardITAT Delhi16 May 2025Bench: SHRI MAHAVIR SINGH, VICE PRESIDENT, SHRI NAVEEN CHANDRA (Accountant Member)6 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the CIT(E) had decided the issue without appreciating the facts and that the assessee had reasonable cause for not participating. The matter was restored to the CIT(E) for fresh adjudication after providing the assessee an adequate opportunity to be heard.

What were the facts?

The assessee's application for grant of registration u/s 12A(1)(ac)(iii) and 80G was rejected by the CIT(A) and its provisional registration was cancelled. The assessee claims this was due to non-prosecution as they did not receive notice, attributing it to circumstances beyond their control.

What were the issues?

Whether the rejection of registration and cancellation of provisional registration was justified without proper notice and opportunity to the assessee.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘F’ BENCH,

Before: SHRI MAHAVIR SINGH, & SHRI NAVEEN CHANDRA

For Respondent: Shri Manish Gupta, Sr. DR
Hearing: 16.05.2025Pronounced: 16.05.2025

Heard together (2 matters)

ITA No. 1491/DEL/2025
ITA No. 1496/DEL/2025

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

against the order of the ld. CIT(E), New Delhi dated 11.03.2025.

2.

None appeared for and on behalf of the assessee. So we heard the ld. DR and perused the relevant material on record.

3. We find from the record that the assessee has filed an application stating that the ld. CIT(A) has rejected the application for grant of registration u/s 12A(1)(ac)(iii) and 80G of the Income-tax Act, 1961 [the Act, for short] and cancelled the provisional registration. It is the say of the assessee that rejection of application u/s 12A and 80G of the Act was solely on account of non-prosecution of the application.

3.

Per contra, the ld. DR relied upon the orders of the authorities below.

4.

We have heard the ld. DR and have perused the relevant material on record. The reason stated by the assessee in its application is that no notice came to their knowledge and hence non-compliance was beyond their control. We find that the ld. CIT(E) has decided the issue without appreciation of facts. We are of the considered view that the assessee has reasonable cause for not participating before the ld. CIT(E).

5.

In view of the above facts and circumstances and in the interest of justice and fair play, we are of the considered view that the matter be restored back to the file of the ld. CIT(E) to decide the issues afresh after allowing adequate opportunity of being heard to the assessee.

6.

The ld. CIT(E) is directed to decide the issues afresh after affording reasonable and adequate opportunity of being heard to the assessee.

The assessee is also directed to provide necessary information /documents as required by the authorities.

7.

In the result, appeal of assessee in & 1496/DEL/2025 are allowed for statistical purposes.

Order pronounced in open court on 16.05.2025.

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