BANDI CHHOR BHAKTI MUKTI TRUST,HISAR vs. INCOME TAX OFFICER, ROHTAK

ITA No.1759/DEL/2026 BANDI CHHOR BHAKTI MUKTI TRUST, HISAR IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.1759/DEL/2026 Assessment Year: 2025-26 BANDI CHHOR BHAKTI MUKTI TRUST, Vs. COMMISSIONER OF INCOME TAX, Daulatpur Road, Barwala, Hisar 125121, Exemption, Chandigarh, Haryana, India. C/o Surinder Mahajan & C.R. Building, Himalya Marg, Associates, 74, Vijay Nagar, Jalandhar, Sector-17E, Chandigarh, Punjab 144001. UT 160017. Appellant Respondent Assessee by Shri Sameer Mahajan, CA Revenue by Shri Ashok Gautam, CIT DR Date of hearing: 07.07.2026 Pronouncement on 05.08.2026 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order dated 16.12.2025, passed by Ld. CIT(Exemptions), Chandigarh, u/s 12A of the Income Tax Act, 1961 (hereinafter as “the Act”). It is seen from the record that the application was rejected on the basis of the following finding: -

“7. In view of the foregoing discussion, the undersigned is of the considered view that the activities of the applicant are not carried out in accordance with the objects of the trust deed as its area of operation is inconsistent with its Trust deed. Further, criminal record of its founding members/trustee renders the applicant ineligible for registration. Accordingly, the present application of the applicant filed in Form 10AB u/s 12A(1)(ac)(ii) of the Act is rejected for the above discussed reasons.” 1.1 The assessee has approached the ITAT with grounds as under: -

ITA No.1759/DEL/2026 BANDI CHHOR BHAKTI MUKTI TRUST, HISAR 1. “That on facts and circumstances of the case, Ld. Commissioner of Income Tax (Exemption), Chandigarh has grossly erred in law in rejecting the application for grant of approval u/s 12A(1)(ac)(ii) of the Act. Order passed by Ld. Commissioner of Income Tax (Exemption), Chandigarh is bad in law and is liable to be quashed. 2. That observations made by Ld. Commissioner of Income Tax (Exemption), Chandigarh while rejecting the application for grant of approval u/s 12A(1)(ac)(ii) of the Act have never been confronted to the assessee, which itself makes the order passed illegal, bad in law and void ab-initio. Order passed lacks principles of natural justice. 3. That the Ld. Commissioner of Income Tax (Exemption), Chandigarh has erred in law and on facts in observing and holding that: a) Undersigned is of the considered opinion that the activities of the appellant are not carried out in accordance with the object of the trust deed as its area of operation is inconsistent with the trust deed. b) Criminal records of its founding members/trustee renders the applicant ineligible for registration. Above finding are contrary to the facts and legal position and hence order passed by the Ld. Commissioner of Income Tax (Exemption), Chandigarh is illegal, bad in law and void ab-initio. 4. That the Ld. CIT(E) has not recorded any adverse finding with respect to the charitable nature of the objects of the Trust or the genuineness of its activities, and therefore rejection of registration is arbitrary, unjustified and unsustainable in law. 5. That on facts and circumstances of the case, order passed by the Ld. Commissioner of Income Tax (Exemption), Chandigarh, is illegal and bad in law since same has been passed without considering the submissions of the assessee and facts of the case. 6. That the Appellant requests for leave to add or amend the grounds of appeal before the appeal is heard or disposed off.” 2. Before us the Ld. AR argued with the help of a paper book and written submissions. It was averred that the assessee is committed to charitable and welfare based activities. It was the submission that had proper opportunity of hearing being given then it could have been informed to the Ld. CIT(E) that the founder of the Trust, being Shri Sant Ram Pal, was facing criminal proceedings in 2015 and on becoming aware

ITA No.1759/DEL/2026 BANDI CHHOR BHAKTI MUKTI TRUST, HISAR of such proceedings he was removed from the governing body. It was stated by the Ld. AR that due to inadequate opportunity provided by the Ld. CIT(E) the facts could not be brought to the notice appropriately.

2.1 The Ld. DR relied on the impugned order.

Order pronounced in the open court on 05.08.2026

Sd/- Sd/- (ANUBHAV SHARMA) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 05.08.2026 *Kavita Arora, Sr. P.S.

ITA No.1759/DEL/2026 BANDI CHHOR BHAKTI MUKTI TRUST, HISAR