SMT VIMAL CHAWLA CHARITABLE TRUST,HARYANA vs. CIT(E), CHANDIGARH

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ITA 2732/DEL/2026Status: DisposedITAT Delhi09 July 20263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, while acknowledging the assessee's failure to provide details, granted one more opportunity in the interest of natural justice. The issue was remitted back to the CIT(E) for fresh adjudication.

What were the facts?

The assessee, Smt. Vimal Chawla Charitable Trust, sought registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application for failure to provide requested details and substantiate charitable activities.

What were the issues?

Whether the CIT(E) was justified in rejecting the registration application for non-furnishing of details, and if the assessee should be granted another opportunity to present its case.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

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

Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWALSmt. Vimal Chawla

For Appellant: Shri Pratap Gupta, CA
For Respondent: Ms. Runi Pal, CIT-DR
Hearing: 06/07/2026Pronounced: 06/07/2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.2732/Del/2026 (ASSESSMENT YEAR-----) Smt. Vimal Chawla The CIT(Exemptions), Charitable Trust, Chandigarh. NIMS Hospital, Sector-23A, Vs. Faridabad, Haryana-121005. PAN-AATS4033M (Appellant) (Respondent) Assessee by Shri Pratap Gupta, CA Department by Ms. Runi Pal, CIT-DR Date of Hearing 06/07/2026 Date of Pronouncement 06/07/2026 O R D E R PER MANISH AGARWAL, AM: This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Exemption), Chandigarh [CIT(E), in short] dated 19.02.2026 rejecting the approval/registration sought u/s 12A/(1)(ac)(ii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).

2.

From the perusal of the orders, it is observed that Ld. CIT(E) has denied the registration u/s 12A(1)(ac)(ii) of the Act as the assessee has failed to provide the details as sought for time to time and thus, the Ld. CIT(E) was the opinion that the assessee has failed to substantiate the charitable activities and genuineness of its objects.

2 ITA No.2732 /Del/2026 Smt Vimal Chawla Charitable Trust vs. CIT(E) 3. Before us, the Ld. AR of the assessee submits that the assessee though was not able to file the details before the Ld. CIT(E), however, it is requested that if one opportunity is granted, assessee would file all the documentary evidences as required by Ld. CIT(E) in order to establish the charitable nature of the activities carried out by it.

4.

Per contra, the Ld. CIT-DR supported the orders of Ld. CIT(E) and requested for the confirmation of the same.

5.

We have heard the rival submissions and from the perusal of the order of Ld. CIT(E), though despite of various opportunities, assessee was failed to file any details to establish the genuineness of its activity being carried out for charitable purposes thus, the ld. CIT(E) has denied the registration u/s u/s 12A(1)(ac)(ii) of the Act. 6. Under these facts and circumstances of the case and in the interest of natural justice, one more opportunity is allowed to the assessee and issue is remitted back to the file of Ld. CIT(E) for fresh adjudication on merits in accordance with law after providing reasonable opportunities to the assessee. The Assesse is also directed to file the necessary evidences before the Ld. CIT(E) in order to establish the genuineness of its activity. With these directions, all the grounds of appeal raised by the assessee are allowed for statistical purposes.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 06.07.2026.

Sd/- Sd/- - (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 09.07.2026. *PK, Sr. PS*

3 ITA No.2732 /Del/2026 Smt Vimal Chawla Charitable Trust vs. CIT(E) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

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