SKOCH DEVELOPMENT FOUNDATION ,NEW DELHI vs. DCIT/ACIT(E)(C-2), C. R. BUILDING CHANDIGARH

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ITA 726/CHANDI/2026Status: DisposedITAT Chandigarh06 July 2026AY 2026-272 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal accepted the assessee's plea to substantiate the genuineness of its activities and set aside the impugned orders. The matter was restored to the Commissioner of Income Tax (Exemption) for fresh adjudication.

What were the facts?

The assessee's application for registration under Section 12A(1)(ac)(ii) was rejected due to failure to establish the genuineness of its activities. Consequently, the application for registration under Section 80G(5) was also denied.

What were the issues?

Whether the assessee's activities were genuine enough to warrant registration under Section 12A(1)(ac)(ii) and consequential approval under Section 80G(5).

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Heard together (2 matters)

ITA No.726/CHANDI/2026
ITA No.725/CHANDI/2026

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.726/CHANDI/2026 & 2. आयकरअपीलसं./ ITA No.725/CHANDI/2026 Skoch Development Foundation DCIT/ACIT (E) (C-2) बनाम/ Vs. C/o Dr. Ravi Gupta, B – 41, LGF C.R. Building, Chandigarh Kailash Colony, Delhi – 110048 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AALCS-7888-J (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Ms. Neha Gupta (Advocate) – Ld. AR (Virtual) ��थ�कीओरसे/Respondent by : Sh. Rajat Kumar Kureel (CIT) - Ld. DR सुनवाईकीतारीख/Date of Hearing : 29-06-2026 घोषणाकीतारीख /Date of Pronouncement 06-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application as filed by the assessee seeking registration u/s 12A(1)(ac)(ii) and consequential rejection of application seeking registration u/s 80G(5) vide impugned orders dated 10-03-2026 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appealsbefore us. Upon perusal of rejection order u/s 12A(1)(ac)(ii), it could be seen that

the whole basis of rejection is the fact that the assessee failed to establish the genuineness of its activities. Consequently, approval u/s 80G was also denied. Aggrieved, the assessee is in further appeals before us. The Ld. AR pleaded that the assessee is in a position to substantiate the genuineness of its activities and accordingly, sought remand back of its applications. The same has been opposed by Ld. CIT-DR. 2. Keeping in mind the principles of natural justice and in view of the fact that the assessee is a charitable trust, we accept the prayer of Ld. AR. Accordingly, the impugned orders are set aside and the issue of registrations stand restored back to Ld. CIT(E) for fresh adjudication with a direction to the assessee to plead and prove its cases forthwith. 3. Both the appeals stand allowed for statistical purposes. Order pronounced on 06th July, 2026

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 06-07-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH

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