What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order and remanded the matter back for fresh adjudication. The CIT(E) was directed to grant an opportunity of hearing to the assessee and consider all evidence on record.

The assessee's application for registration under Section 12AB(1)(ac)(ii) was rejected by the CIT(E) for non-submission of audited accounts and alleged missing clauses in the Trust Deed. The assessee contended that non-compliance was unintentional and due to oversight, and that the required clauses were indeed present.

What were the issues?

Whether the rejection of the registration application by the CIT(E) was justified based on technicalities like missing documents and alleged missing clauses, without considering the assessee's explanations and evidence.

Sahachari Foundation vs CIT | ITAT Delhi 2026

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

Before: MSMADHUMITA ROY & SHRI KRIWANT SAHAY

Hearing: 23.06.2026Pronounced: 03.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘B’: NEW DELHI BEFORE MSMADHUMITA ROY,JUDICIAL MEMBER AND SHRI KRIWANT SAHAY, ACCOUNTANT MEMBER

ITA No.5284/Del/2026 [Assessment Year: 2026-27] ITA No.5285/Del/2026 [Assessment Year: 2026-27]

Sahachari Foundation Vs. CIT Exemptions Delhi D-19, DDA Local Shopping Centre, LSC West of Trilokpuri Gulmohar Park, Delhi PAN No.AAITS4213M

Appellant Respondent

Appellant by Sh. N.K. Garg, Advocate Respondent by Sh. Rajesh Mahajan, CIT DR

Date of Hearing 23.06.2026 Date of Pronouncement 03.07.2026

ORDER PER MADHUMITA ROYJ.M.

Thesetwo appeals are filed by the assessee are directed against the orders of the Ld. Commissioner of Income Tax(Exemption), New Delhi [hereinafter referred to as ‘Ld. CIT(E)] dated 09.03.2026 of the Income Tax Act, 1961 (hereinafter referred to as the “Act.”)

The assessee has raised the following grounds of appeal :-

“1. On the facts and in the circumstances of the case, the order passed by the Learned Commissioner of Income Tax Exemption, 1 Delhi Ld. CIT Exemption rejecting the application for registration under section 12A 1 ac ii of the Income Tax Act, 1961 is bad in law and liable to be quashed.

The Ld. CIT Exemption Delhi has erred in law and on facts in passing the order rejecting the application under section 12AB 1 ac ii of the Income Tax Act, 1961, merely on the ground of not responding to the notice dated 27th February, 2026 for non-2 submission of audited accounts for the Financial Year 2022/23, without appreciating the facts and circumstances of the case. The rejection should have been based on substantial issues related to trusts activates OR objectives, rather than merely technicality of missing documents.

That the learned CIT Exemption erred in not considering that the non-compliance was unintentional and due to bona fide reasons due to oversight of employee.

That the Ld. CIT Exemption has erred both on facts and in law in failing to appreciate that the assessee has been genuinely and continuously carrying out its activities since its inception and has consistently complied with all statutory and regulatory requirements, including filing of returns and audit reports. No adverse finding has been recorded by the Ld. CIT Exemption regarding the genuineness of activities of the assessee.

The Ld. CIT Exemption, Delhi has erred both in law and on facts in passing the order rejecting the application under section 12AB 1 ac ii of the Income Tax Act, 1961, on the alleged ground that the Trust Deed does not contain clauses relating to irrevocability and dissolution. The Ld. CIT Exemption failed toappreciate that the said clauses were duly incorporated in the Trust Deed and were specifically disclosed and furnished along with the submission filed in response to the notice dated 5th December, 2025. The rejection has been made without considering the material placed on record, thereby rendering the order arbitrary, unjustified, and liable to be set aside.

The Ld. CIT Exemption, Delhi has erred in rejecting the 6 application without pointing out specific defects OR deficiencies in the documents already submitted by the appellant.”

The Ld. Counsel for the assessee submitted that the order of the Ld. CIT(E), Delhi that due to non-filing of relevant details and or / information the application filed by the assessee in Form 10AB for registration u/s.12AB(1)(ac)(ii)/80G of the Act was stood rejected.

Having regard to the facts of the matter, we reject the applications for adjournment made by the assessee. Thus, both these appeals are disposed of by setting aside the issues to the file of the Ld. CIT(E) for fresh adjudication of the same upon granting an opportunity of being heard to the assessee and upon considering the evidences on record or any other evidence which the assessee may choose to file at the time of hearing of the matter.

Appeals preferred by the assessee are allowed for statistical purposes.

Order pronounced in the open court on 03.07.2026.

Sd/- Sd/- [KRINWANT SAHAY] [MADHUMITA ROY] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 03 .07.2026 NEHA/R.Naheed , Sr.P.S.*

SAHACHARI FOUNDATION,DELHI vs. CIT EXEMPTIONS, DELHI

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