SHAAGIRD FOUNDATION,DELHI vs. CIT (EXEMPTION), NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, A: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No.- 4755 & 4756/Del/2026 [Assessment Year: NA] Shaagird Foundation, CIT (Exemption), D-247/248, Second floor, left side Minto Road, Civic Centre, New kh no. 338/2, Abul Fazal-I, Jamia Vs Delhi-110002. Nagar, Okhla, South Delhi-110025, New Delhi-110025. PAN- ABJCS7197K Assessee Revenue Assessee by Sh. Ankit Kumar, CA Revenue by Ms. Pooja Swaroop, CIT(DR) Date of Hearing 22.07.2026 Date of Pronouncement 22.07.2026 ORDER Per Renu Jauhri, Accountant Member:

These two appeals by the assessee are directed against the order both dated 21.08.2024 of the ld. Commissioner of Income Tax (Exemption), Delhi, [hereinafter referred to as the ‘Ld. CIT(E)]. 2. The assessee has raised the following grounds of appeal (ITA No.- 4755/Del/2026):

ITA No.- 4755 & 4756/Del/2026 Shaagird Founda�on “1. THE LEARNED PCIT FAILED TO APPRECIATE THAT THE DONATIONS RECEIVED IN FY 2023-24 WERE COLLECTED FOR THE PURPOSE OF ACQUIRING LAND FOR ESTABLISHMENT OF A SCHOOL, WHICH IS A CHARITABLE OBJECT, AND SUCH LAND WAS ACTUALLY ACQUIRED IN FY 2024 25. 2. THE LEARNED PCIT HAS ERRED IN CANCELLING THE PROVISIONAL REGISTRATION EARLIER GRANTED TO THE APPELLANT WITHOUT SATISFYING THE STATUTORY CONDITIONS REQUIRED FOR SUCH CANCELLATION. 3. THE IMPUGNED ORDER HAS BEEN PASSED IN A MECHANICAL MANNER WITHOUT DULY CONSIDERING THE EXPLANATIONS AND MATERIAL PLACED ON RECORD BY THE APPELLANT. 4. THE IMPUGNED ORDER IS ARBITRARY, UNSUSTAINABLE IN LAW, AND IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE. 5. THE LEARNED PCIT (EXEMPTIONS) HAS ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AB WITHOUT PROPERLY CONSIDERING THE DOCUMENTS AND DETAILS SUBMITTED BY THE APPELLANT. 6. THE LEARNED PCIT HAS ERRED IN HOLDING THAT THE APPELLANT HAS NOT COMMENCED CHARITABLE ACTIVITIES, IGNORING THE FACT THAT THE APPELLANT HAS RECEIVED GENERAL DONATIONS AMOUNTING TO RS. 2,24,248 DURING FINANCIAL YEAR 2023 24, WHICH CLEARLY ESTABLISHES COMMENCEMENT OF CHARITABLE ACTIVITIES. 7. THE LEARNED PCIT HAS FAILED TO APPRECIATE THAT THE APPELLANT IS A NEWLY INCORPORATED SECTION & COMPANY AND THAT INITIAL CHARITABLE ACTIVITIES NECESSARILY INCLUDE COLLECTION OF DONATIONS AND PREPARATION FOR FUTURE CHARITABLE PROJECTS. 8. THE LEARNED PCIT HAS ERRED IN TREATING THE ABSENCE OF SUBSTANTIAL CHARITABLE EXPENDITURE IN THE INITIAL YEAR AS A GROUND FOR REJECTION, WHICH IS CONTRARY TO THE PROVISIONS OF LAW AND SETTLED JUDICIAL PRINCIPLES.

2.1 The assessee has raised the following grounds of appeal (ITA No.- 4756/Del/2026):

ITA No.- 4755 & 4756/Del/2026 Shaagird Founda�on

“1. THE LEARNED PCIT FAILED TO APPRECIATE THAT THE DONATIONS RECEIVED IN FY 2023-24 WERE COLLECTED FOR THE PURPOSE OF ACQUIRING LAND FOR ESTABLISHMENT OF A SCHOOL, WHICH IS A CHARITABLE OBJECT, AND SUCH LAND WAS ACTUALLY ACQUIRED IN FY 2024 25. 2. THE LEARNED PCIT HAS ERRED IN CANCELLING THE PROVISIONAL REGISTRATION EARLIER GRANTED TO THE APPELLANT WITHOUT SATISFYING THE STATUTORY CONDITIONS REQUIRED FOR SUCH CANCELLATION. 3. THE IMPUGNED ORDER HAS BEEN PASSED IN A MECHANICAL MANNER WITHOUT DULY CONSIDERING THE EXPLANATIONS AND MATERIAL PLACED ON RECORD BY THE APPELLANT. 4. THE IMPUGNED ORDER IS ARBITRARY, UNSUSTAINABLE IN LAW, AND IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE. 5. THE LEARNED PCIT (EXEMPTIONS) HAS ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AB WITHOUT PROPERLY CONSIDERING THE DOCUMENTS AND DETAILS SUBMITTED BY THE APPELLANT. 6. THE LEARNED PCIT HAS ERRED IN HOLDING THAT THE APPELLANT HAS NOT COMMENCED CHARITABLE ACTIVITIES, IGNORING THE FACT THAT THE APPELLANT HAS RECEIVED GENERAL DONATIONS AMOUNTING TO RS. 2,24,248 DURING FINANCIAL YEAR 2023 24, WHICH CLEARLY ESTABLISHES COMMENCEMENT OF CHARITABLE ACTIVITIES. 7. THE LEARNED PCIT HAS FAILED TO APPRECIATE THAT THE APPELLANT IS A NEWLY INCORPORATED SECTION & COMPANY AND THAT INITIAL CHARITABLE ACTIVITIES NECESSARILY INCLUDE COLLECTION OF DONATIONS AND PREPARATION FOR FUTURE CHARITABLE PROJECTS. 8. THE LEARNED PCIT HAS ERRED IN TREATING THE ABSENCE OF SUBSTANTIAL CHARITABLE EXPENDITURE IN THE INITIAL YEAR AS A GROUND FOR REJECTION, WHICH IS CONTRARY TO THE PROVISIONS OF LAW AND SETTLED JUDICIAL PRINCIPLES.”

ITA No.- 4755 & 4756/Del/2026 Shaagird Founda�on

ITA No.- 4755 & 4756/Del/2026 Shaagird Founda�on is also restored to the CIT(E) for fresh consideration after giving due opportunity to the assessee. 8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 22.07.2026

Sd/- Sd/- [SATBEER SINGH GODARA] [RENU JAUHRI] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 24.07.2026. Pooja, Sr. PS. Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR

Asst. Registrar, ITAT, New Delhi,