M/S O TRUST ,DELHI vs. CIT (EXEMPTION) , DELHI

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ITA 1783/DEL/2026Status: DisposedITAT Delhi15 July 2026AY 2024-254 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT set aside the impugned order and remanded the matter back to the CIT(Exemptions) for fresh consideration. The assessee was given an opportunity to provide complete details and adequate evidence.

What were the facts?

The assessee, a registered trust, had its application for registration under Section 12A of the Income Tax Act rejected by the CIT(Exemptions) due to issues with the dissolution clause in the trust deed and insufficient income/expenditure details. The assessee appealed this rejection to the ITAT.

What were the issues?

Whether the CIT(Exemptions) erred in rejecting the trust's registration application without providing a proper opportunity to furnish complete details, and if the trust deed's dissolution clause was indeed non-compliant.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB(1)(b)(ii)(B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES: ‘A’, NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI SANJAY AWASTHI

For Appellant: Shri Keshav Raj, Adv
For Respondent: Shri Ashok Gautam, CIT(DR)
Hearing: 09.07.2026Pronounced: 15.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: ‘A’, NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.- 1783/DEL/2026 [Assessment Year: 2024-25] M/s O Trust, Commissioner of Income Tax, 115, Qutab Green Apartment (Exemption), E-2 Block, Civic Gadaipur, Sultanpur, South West Vs Centre, Jawarharlal Nehru Marg, Delhi, 110030. Minto Road, New Delhi-110002. PAN- AAATO9310K Assessee Revenue

Assessee by Shri Keshav Raj, Adv. Revenue by Shri Ashok Gautam, CIT(DR) Date of Hearing 09.07.2026 Date of Pronouncement 15.07.2026 ORDER Per Sanjay Awasthi, Accountant Member:

1.

In this case, the Income Tax Appellate Tribunal (ITAT) registry has reported a delay of 81 days. The assessee has filed a petition seeking condonation of the said delay as under:

“1. The present Appeal has been filed by the Appellant challenging the Order under Section 12AB(1)(b)(ii) (B) of the Income Tax Act, 1961 dated 11.09.2025 passed by the Commissioner of Income Tax (Exemptions), Delhi, whereby the Appellant's application for registration under Section 12A of the Income Tax Act was rejected citing hyper technical reasons. The Appellant is a registered Trust 1

ITA No.- 1783/Del/2026 M/s O Trust . having the main objective to promote art, culture, education and community welfare. 2. That there is a delay of 161 days in filing the present Appeal. The impugned Order was passed on 11.09.2025. 3. It is submitted that the above said delay has been caused solely due to the time period required to obtain all the necessary documents such as the previous trust deeds, exemption applications, etc., which are mandatory to file the above appeal. The delay caused is neither deliberate nor willful, and the same has been caused due to circumstances beyond the Appellant's control. It is therefore most humbly prayed that this Hon'ble Tribunal may be pleased to condone the delay in filing of this Appeal.”

1.1 Considering the reasons given in the said petition, the delay is hereby condoned and the appeal is admitted for adjudication.

2.

This appeal arises from order under section 12AB(1)(b) (ii)(B) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), dated 28.05.2024, passed by the Ld. CIT(Exemption), Delhi.

2.1 In this case, the Ld. CIT(E) found that the dissolution clause in the trust deed was not as per the norms of the Indian Trusts Act, 1882. The second reason for denying registration was the fact that income and expenditure details were not provided to the satisfaction of the Ld. CIT(E).

2.2 Aggrieved, the assessee has approached the ITAT with grounds of appeal, challenging this action of the Ld. CIT(E). However, the grounds are extremely detailed and argumentative, but the sum and substance of the same is that there was

ITA No.- 1783/Del/2026 M/s O Trust . denial of opportunity and there was an alleged failure on the part of Ld. CIT(E) in terms of not examining the details already on record.

2.

The Ld. AR took us through the various documents filed before the Ld. CIT(E) and requested that the assessee may be given another chance to provide complete details before the Ld. CIT(E), for an evaluation of the same on merits.

2.1 The Ld. DR relied on the impugned order.

3.

We have considered the rival contentions and gone through the records before us. It is seen that the assessee could not file complete details before the Ld. CIT(E) and has therefore suffered the rejection of his application. In the interests of justice, we deem it fit to set aside the impugned order and remand this matter back to the file of the Ld. CIT(E) for fresh consideration, after an opportunity is provided to the assessee. The assessee assures that he shall supply adequate evidence and documents at the first available opportunity.

4.

In the result, appeal of the assessee is partly allowed for statistical purposes

Order pronounced in the open court on 15.07.2026.

Sd/- Sd/- [ANUBHAV SHARMA] [SANJAY AWASTHI] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 15.07.2026. Pooja.

ITA No.- 1783/Del/2026 M/s O Trust . Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,

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