PHOOLJA FOUNDATION,DELHI vs. CIT(EXEMPTION), DELHI

PDF · subscribers
ITA 3905/DEL/2026Status: DisposedITAT Delhi06 August 2026AY 2026-274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(E) should have assisted the newly incorporated assessee or given them an opportunity to rectify the mistake in their application. The CIT(E) rejected the application without providing proper opportunity.

What were the facts?

The assessee, Phoolja Foundation, applied for approval under Section 80G. The CIT(E) rejected the application because the assessee had applied for regular approval instead of provisional approval, despite having obtained provisional registration under Section 12A.

What were the issues?

Whether the CIT(E) erred in rejecting the Section 80G application without providing a proper opportunity to rectify a clerical mistake in the application process.

Which sections of the Income-tax Act were involved?

Section 80G,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’: NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI VIMAL KUMAR

Hearing: 22.06.2026Pronounced: 06.08.2026

PER S. RIFAUR RAHMAN, AM:

The assessee has filed appeal against the order of the learned Commissioner of Income Tax (Exemption), New Delhi [“ld. CIT(E)”, for short] dated 05.03.2026 u/s 80G of the Income Tax Act, 1961 (for short ‘the Act’).

2 ITA No. 3905/Del/2026 Phoolja Foundation 2. After considering the application filed by the assessee, the ld. CIT(E) observed that the assessee was incorporated only on 08.04.2025 and has obtained provisional registration u/s 12A(1)(ac)(vi) in Form 10AC for the period from A.Y. 2026-27 to A.Y. 2028-29. He observed that at present, the applicant has applied for approval u/s 80G(5)(iii) without obtaining provisional registration from the CPC. He further observed that as per the ITBA portal the assessee has not applied for regular registration u/s 12A. In absence of application in Form 10AB, the present application filed is not relevant and not maintainable and accordingly he rejected the application.

3.

Aggrieved with the above order, the assessee is in appeal before us raising the following grounds of appeal:

“1. The Order of CIT(E) is bad in law and on facts.

2.

The Ld. CIT(E) has erred in rejecting the application of the assessee ignoring the facts and the relevant material of the case and hence violated the principle of natural justice

3.

The CIT(E) has erred in law and on facts in dismissing the application of the assessee without providing meaningful opportunity to the assessee and hence his order is a nullity

4.

On the facts and under the circumstances of the case, the CIT(E) has failed to appreciate that applying under wrong section for regular approval, instead of provisional, is a clerical mistake, rectifiable after seeking reply of the assessee

5.

The appellant craves leave to add, amend, alter, OR withdraw any ground at the time of hearing.”

3 ITA No. 3905/Del/2026 Phoolja Foundation 4. At the time of hearing, the ld. AR of the assessee brought our notice the relevant facts on record and submitted that the ld. CIT(E) rejected the application for the reason that the assessee has applied under wrong section for regular approval instead of provisional which is rectifiable mistake, could have given opportunity to the assessee before rejecting the application. He prayed that suitable direction may be given.

5.

On the other hand, the ld. DR relied on the findings of the ld. CIT(E).

6.

Considered the rival submissions and materials placed on record. We observed that the ld. CIT(E) himself observed that the assesse has obtained provisional registration u/s 12A(1)(ac)(vi) of the Act for the period from A.Y. 2026- 27 to A.Y. 2028-29. Since, the assessee has been recently incorporated, the assessee has filed an application for registration u/s 80G by filing normal application instead based on provisional registration. Since the above facts were noticed by the ld. CIT(E) to reject the application. In our considered view, the ld. CIT(E) should have assisted the new assessee or given opportunity to them in order to rectify the above mistake and may be assisted to file proper application, however, ld. CIT(E) preferred to reject the application without assisting the assessee. Since ld. CIT(E) has not granted proper opportunity to the assessee, we are inclined to remit this issue back to the file of the ld. CIT(E) to assist the assesee and also give proper opportunity of

4 ITA No. 3905/Del/2026 Phoolja Foundation being hearing to the assessee. At the same time, we direct the assessee to modify the application as per law and approach the ld. CIT(E) to grant registration. Based on the above fresh application, it is directed to consider the same and grant registration as per law.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order is pronounced in the Open Court on 06.08.2026

Sd/- Sd/- (VIMAL KUMAR) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.08.2026 *GP/Sr.PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(E) 4. CIT 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

More judgments on Section 80G

All 6,482 judgments and leading authorities on Section 80G →

Recent GST High Court judgments

Search GST case law →