R S FOUNDATON, NEW DELHI vs. CIT (EXEMPTIONS), DELHI

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ITA 4587/DEL/2026Status: DisposedITAT Delhi08 July 2026AY 2026-274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) rejected the applications summarily without affording due opportunity to the assessee. Therefore, the impugned orders were set aside and the matter was remitted back to the CIT(E) for fresh adjudication.

What were the facts?

The assessee's applications for registration under section 12AB and approval under section 80G were rejected by the CIT(E). The assessee contended that its right to natural justice was violated as it was not given a proper opportunity to be heard.

What were the issues?

Whether the CIT(E) properly afforded the assessee an opportunity of being heard before rejecting its applications for registration and approval. Whether the rejection was based on due consideration of facts or was summary in nature.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

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

Before: SHRI ANUBHAV SHARMA

Pronounced: 08.07.2026

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, ‘A’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA 4587 & 4588/DEL/2026 िनधा�रण वष�/Assessment Year: 2026-27) R S FOUNDATON CIT (EXEMPTIONS) E - 356 GROUND FLOOR GREATER CIVIC CENTRE MINTO ROAD Vs. KAILASH II, DELHI-110048, DELHI NEW DELHI-, DELHI अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of Assessee: AACTR6404P

अपीलाथ� �ारा/Appellant represented by: Shri Alok Kumar Gupta, CA ��थ� �ारा/Respondent represented by: Shri Rajore Satish Chandra Ramsevak, CIT DR सुनवाई की तारीख / Date of conclusion of hearing: 25.06.2026 घोषणा की तारीख / Date of pronouncement: 08.07.2026 ORDER PER BENCH

These two appeals by the assessee are directed against the order of the Ld. Commissioner of Income Tax(Exemption), New Delhi [hereinafter referred to as ‘ld. CIT(E)] both dated 22.03.2026 passed under section 12AB(1)(b)(ii) and 80G of the Income Tax Act, 1961, for the Assessment Year 2026-27. The word ‘Act’ herein this order would mean Income Tax Act, 1961. The appeal of the assessee vide ITA No.4588/Del/2026 is regarding the 2. rejection of its request filed under section 80G(5)(ii) of the Act. The appeal of the assessee vide ITA No.4587/Del/2026 is regarding the rejection of its request filed under section 12AB(I)(b)(ii) of the Act. As both the appeals are of the same assessee concerning common issues of rejection of its application under section 12A and 80G, they were heard together and for the purposes of convenience, adjudicated by this common order.

3.

At the outset, ld. Counsel for the assessee submitted that its right to natural justice has been violated in as much as due opportunity of being heard has not been given before rejecting its request for grant of registration u/s 12A and 80G of the Act. The ld. Counsel argued that its request for registration has been rejected for non-availability of dissolution clause/irrevocable clause in the trust deed. The ld. Counsel accordingly requested that it be provided one last chance to defend its case and, the matter be considered for remission back to the ld. CIT(E). The ld. Counsel assured that full compliance shall be made to the statutory notices issued by the Revenue authorities.

4.

The ld. DR while placing reliance upon the orders of the lower authorities did not serious opposed the move.

5.

We have heard rival submissions and perused the material available on record. We have noted that the Ld. CIT(E) has rejected applications of the assessee without due consideration of facts on records alluding towards a nonapplication of mind. We have noted that the ld. CIT(E) has dismissed assessee’s application for grant of registration under section 12A and u/s 80G purely in a summary manner without affording any opportunity of defending its case . No show cause was issued before drawing adverse conclusions. The appellant was stated to be in possession of all required documents to defend its case . Be that as it may be in the interest of justice, we deem it appropriate to set-aside the impugned orders of the ld. CIT(E) and remit the matter of grant of registration u/s 12A as well as u/s 80G back to ld. CIT(E) for adjudication de novo in accordance with law. Due opportunity of being heard shall be given to the assessee. The assessee shall comply with all the statutory notices and any non-compliance shall be adversely viewed. The ld. CIT(E) is directed to also consider the decision of this Tribunal in the case of Radison India Charitable Foundation(supra) while re-adjudicating the appeal. The rejection of application u/s 80 G is intricately linked to fate of appellant’s application u/s 12A. Accordingly, the appeals of the assessee vide ITA No.4587/Del/2026 and vide ITA No. 4588/Del/2026 are allowed for statistical purposes.

6.

Finally, both the appeals of the assessee are allowed for statistical purposes.

Order pronounced in the open court on 08th July, 2026 Sd/- Sd/- [ANUBHAV SHARMA] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 08.07.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT Page 3 of 4

4.

CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,

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