SLEDGEHAMMER FOUNDATION,DELHI vs. CIT(EXEMPTIONS), DELHI

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ITA 6189/DEL/2026Status: DisposedITAT Delhi19 August 2026AY 2026-20275 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the transfer of the assessee's case from CIT(E), Delhi to CIT(E), Chandigarh was illegal as no objection of the assessee was obtained as required by Section 127. Consequently, the order rejecting the registration was set aside.

What were the facts?

The assessee, a charitable trust running a cricket coaching academy, had its applications for registration under Section 12A and exemption under Section 80G rejected by the CIT(E), Chandigarh. The assessee argued that its case was wrongly transferred from Delhi to Chandigarh without its consent, violating Section 127 of the Act.

What were the issues?

The primary issue was the validity of the transfer of jurisdiction for processing the assessee's applications. The Tribunal also considered the substantive grounds for rejection of the applications.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 80G(5)(ii),Section 127

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI VIKAS AWASTHY

Pronounced: 19.08.2026

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, ‘F’ NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA No.6189 and 6190/DEL/2026 िनधा�रण वष�/Assessment Year: 2026-2027) SLEDGEHAMMER FOUNDATION CIT(EXEMPTIONS) 201, SOUTH EX PLAZA 1, MASJID CIVIC CENTRE MOTH, SOUTH EX PART -II, NEW Vs. NEW DELHI-110002, DELHI-110049, अपीलाथ� Appellant ��थ� Respondent Permanent Account Number of Assessee: AAOTS9264L

अपीलाथ� �ारा/Appellant represented by: Shri Vinod Kr. Agarwal, CA ��थ� �ारा/Respondent represented by: Ms. Ranu Mukherjee,CIT(DR) सुनवाई की तारीख / Date of conclusion of hearing: 13.08.2026 घोषणा की तारीख / Date of pronouncement: 19.08.2026 आदेश / ORDER These two appeals by the assessee are directed against the order of the Ld. Commissioner of Income Tax(Exemption), New Delhi [hereinafter referred to as ‘ld. CIT(E)] both dated 03.03.2026 passed under section 12A(1)(ac)(ii) and 80G of the Income Tax Act, 1961, for the Assessment Year 2026-27. The word ‘Act’ herein this order would mean Income Tax Act, 1961.

The appeals of the assessee vide ITA No.6189/Del/2026 is regarding the 2. rejection of its request filed under section 12A(1)(ac)(ii) of the Act. The appeal of the assessee vide ITA No.6190/Del/2026 is regarding the rejection of its request

ITA 6189 & 6190/DEL/2026 SLEDGEHAMMER FOUNDATION filed under section 80G(5)(ii) of the Act. As both the appeals are of the same assessee concerning common issues of rejection of its application under section 12A and 80G, they were heard together and for the purposes of convenience, adjudicated by this common order.

3.

As per brief factual matrix, the Delhi based assessee charitable trust is running a cricket coaching academy at Faridabad. Application for registration u/s 12A was made on 26.09.2025 before the ld. CIT(E), Delhi for grant of registration. The ld. CIT(E), Chandigarh, after considering documents filed concluded through his order dated 03.03.2026 that the assessee trust was not doing a non-commercial activity having a charitable intent. Accordingly, application for registration was rejected. Simultaneously, the application for grant of exemption u/s 80G was also rejected by ld. CIT(E), Chandigarh through his order dated 03.03.2026.

4.

Heard, perused the material available on record.

5.

At the outset, ld. Counsel for the assessee submitted that its grounds of appeal no.2 qua ITA No.6189/Del/2026 be decided in preference over the other grounds. The ld. Counsel submitted that it is a Delhi based charitable trust but its case has been decided by ld. CIT(E), Chandigarh. It was submitted that no objection of the assessee was obtained before transferring its case from Delhi to Chandigarh. The ld. Counsel further argued that it has been filing its Return of

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ITA 6189 & 6190/DEL/2026 SLEDGEHAMMER FOUNDATION Income all along in Delhi. It was submitted that the PAN Number of the assessee trust also bears at Delhi Address. The ld. Counsel argued that Faridabad address was given at the portal for communication purposes only and that the assessee is having its cricket training academy located at Faridabad. The ld. Counsel submitted through paper book copy of its trust deed, PAN Card, etc. to support its arguments.

6.

The ld. DR submitted that the assessee was having facility at Faridabad and therefore transfer of case records from Delhi to Chandigarh was justified. The ld. DR also submitted an e-mail report from offices of CIT(E), Delhi and Chandigarh, indicating transfer from Delhi to Chandigarh. According to report of CIT(E), Chandigarh, the case records were received from Office of CIT(E), Delhi, on 15.01.2026 and the said Commissioner proceeded thereafter to consider the application for registration. It was also submitted that the assessee has not disputed the jurisdiction during proceedings.

7.

We have noted that section 127 of the Act requires that objection of a tax payer need be entertained before effecting any inter city transfer of a tax payer jurisdiction. No such order has been produced by the Revenue in the present case. In the absence of such a valid transfer order u/s 127, the transfer of case records from Office of CIT(E), Delhi to CIT(E), Chandigarh was totally illegal. We have noted that there are sufficient evidence on record to indicate that the assessee was a valid registered trust in Delhi and therefore CIT(E), Delhi had the apparent

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ITA 6189 & 6190/DEL/2026 SLEDGEHAMMER FOUNDATION rightful jurisdiction. Be that as it may be in the interest of justice, we set-aside the order rejecting grant of registration u/s 12A of the Ld. CIT(E), Chandigarh. The Revenue is directed to ascertain within 30 days of passing of this order, the rightful jurisdiction of the assessee and further direct such jurisdictional authority to conclude assessee’s request for grant of registration within 60 days of such determination and in accordance with law. The application for registration of assessee hither to file before CIT(E), Delhi 26.09.2025 shall be acted upon by the authority determined as having rightful jurisdiction over the assessee. The assessee shall be entitled to due opportunity of being heard. The legal ground of appeal no.2 of the assessee is therefore allowed for statistical purposes.

8.

As we have allowed legal ground of appeal no.2 of the assessee, all other grounds raised by the assessee are treated as academic and hence kept open.

9.

In the result, the appeal of the assessee in ITA No.6189/Del/2026 is allowed for statistical purposes.

10.

The decision taken in ITA No.6189/Del/2026 shall apply mutatis mutandis to the appeal in ITA No.6190/Del/2026.

11.

Finally, both the appeals of the assessee are allowed for statistical purposes.

Order pronounced in the open court on 19th August, 2026. Sd/- Sd/- [VIKAS AWASTHY] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER

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ITA 6189 & 6190/DEL/2026 SLEDGEHAMMER FOUNDATION Dated: 19.08.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,

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