SAI KRISHNA ASSOCIATES,DELHI vs. INCOME TAX OFFICER, FACELESS

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ITA 8592/DEL/2025Status: DisposedITAT Delhi30 April 2026AY 2015-163 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the appeal as defective. The assessee failed to rectify defects in the appeal memo and did not comply with notices issued by the Tribunal. No one appeared on behalf of the assessee on the date of hearing.

What were the facts?

The assessee appealed against the rejection of renewal of registration under Section 12AB. The rejection was based on the ground that charitable expenses were incurred in cash. The assessee argued that cash expenditure was unavoidable in rural areas and that genuineness was not doubted.

What were the issues?

Whether renewal of registration under Section 12AB can be rejected solely on the basis of cash expenditure without doubting genuineness. Whether the appeal is maintainable in the absence of compliance with procedural requirements.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(ii),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: Sh. Yogesh Kumar US & Smt. Renu Jauhri

Hearing: 30.04.2026Pronounced: 30.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Yogesh Kumar US, Judicial Member & Smt. Renu Jauhri, Accountant Member ITA No. 8592/Del/2025 : Asstt. Year : 2015-16 Sai Krishna Associates, Vs Income Tax Officer, 38, Amit Apartment, Rohini Court Faceless, Delhi, Delhi-110085 Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. ACBFS0861N Assessee by : None Revenue by : Sh. Ravi Kant Choudhary, Sr. DR Date of Hearing: 30.04.2026 Date of Pronouncement: 30.04.2026 ORDER Per Renu Jauhri, Accountant Member: The above captioned appeal is preferred by the assessee against the order dated 19.12.2025, passed by CIT(A)/NFAC, Delhi u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2015-16.

2.

The assessees has raised following grounds of appeal: “1. That the Ld. CIT Exemption, Chandigarh has erred in facts and in law in rejecting renewal of registration u/s 12AB read with section 12A(1)(ac)(ii), which is arbitrary, illegal and unsustainable. 2. That the Ld. CIT Exemption erred in rejecting renewal solely on the ground that charitable expenses were incurred in cash without any finding that such expenses are non-genuine or not in accordance with charitable objects. 3. That the Ld. CIT Exemption failed to appreciate that in absence of any allegation of misuse/diversion or violation, renewal could not have been refused.

2 ITA No. 8592/Del/2025 Sai Krishna Associates 4. That the Ld. CIT Exemption failed to appreciate the practical circumstance that temple and religious activities in rural/semi-urban areas are dependent upon vendors who deal only in cash. 5. That the Ld. CIT Exemption failed to appreciate that institutional bank accounts of societies are operated under dual/collective signatures and banks generally do not extend UPl/Google Pay facility to such institutional accounts, the only banking mode is cheque, which rural vendors do not accept, making cash expenditure unavoidable and bona fide. Rejection based solely on cash is therefore untenable. 6. That mere mode of expenditure cannot form legal basis for refusing renewal, especially when genuineness and charitable intent are not doubted. 7. That the rejection order is contrary to the settled law laid down by Honorable Supreme Court in Ananda Social & Educational Trust and by Honorable P&H High Court in Surya Educational & Charitable Trust that at renewal stage, only genuineness and charitable objects are to be examined. 8. It is therefore prayed that the impugned order be quashed and renewal u/s 12AB be granted.” 3. At the outset, it is noted that a defect memo was issued on 19.12.2025 vide which the assessee was requested to rectify the defects and also file copy of the order of ld. CIT(A) u/s 250 which had been assailed. However, no compliance has been made by the assessee despite the fact that notices were issued on 05.02.2026 and 21.04.2026. The case was last fixed for hearing on 30.04.2026 on which date neither anyone appeared nor any application for adjournment has been filed. In view of the defective appeal filed and no compliance to any of the notices, we hereby dismiss the appeal of the assessee.

3 ITA No. 8592/Del/2025 Sai Krishna Associates 4. In the result, appeal of the assessee is dismissed Order Pronounced in the Open Court on 30/04/2026. Sd/- Sd/- (Yogesh Kumar US) (Renu Jauhri) Judicial Member Accountant Member Dated: 14/05/2026 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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