OPEN BOOK FOUNDATION,DELHI vs. CIT(EXEMPTION), DELHI

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ITA 6568/DEL/2025Status: DisposedITAT Delhi15 May 2026AY 2026-276 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee had furnished all necessary documents and that the CIT(E) had failed to consider them. Therefore, the matter was restored to the CIT(E) for fresh consideration.

What were the facts?

The assessee, a charitable society, applied for registration under Section 12AB of the Income Tax Act. The CIT(E) rejected the application, citing the assessee's failure to provide specific replies to queries and ambiguity regarding its activities.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without considering the documents submitted by the assessee and whether the order was non-speaking and violated principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A

AI-generated summary — verify with the full judgment below

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

Before: SHRI C.N. PRASAD & SHRI SANJAY AWASTHI

For Respondent: Ms. Pooja Swaroop, CIT DR
Hearing: 12.03.2026Pronounced: 15.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘B’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER

ITA No.6568/Del/2025 [Assessment Year: 2026-27] Open Book Foundation Vs. CIT(Exemption) Delhi A-2/57, Paschim Vihar West Delhi-110063 PAN No.AADCO5573G

Appellant Respondent Appellant by Sh. Mihir Kaushik, Advocate Sh. Shivam Garg, Advocate Respondent by Ms. Pooja Swaroop, CIT DR Date of Hearing 12.03.2026 Date of Pronouncement 15.05.2026 ORDER PER C.N. PRASAD, J.M. This appeal is filed by the assessee against the order of Ld. CIT(E) dated 26.09.2025 passed u/s.12AB of the Act in rejecting for the registratio.

2.

The assessee has raised following grounds of appeal :-

1.

That the order passed by the learned CIT Exemptions, Delhi (hereinafter referred to as 'the Id. CIT Exemptions'), dated 26.09.2025, under Section

12AB(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), read with rule 17A of the Income Tax Rules, 1962 (hereinafter referred to as 'the Rules'), in Form No. 10AD, is erroneous, bad in law and on facts, as well as in violation of the principles of natural justice.

2.

The learned CIT Exemptions has erred in law and on facts by rejecting the application in Form No. 10AB filed by the Assessee, a charitable society seeking registration under sub clause (ii) of clause. (ac) of sub- section (1) of Section 12A of the Act, and thereby cancelling the provisional registration granted to it in Form No. 10AC on 01.10.2022, holding that the assessee did not provide a specific reply to the queries raised and was ambiguous regarding the nature of the activities being carried out.

3.

That the Id. CIT Exemptions has erred on facts and in law in not appreciating that that the assessee had furnished appropriate responses to each query, accompanied by supporting particulars and moreover, no such discrepancies were pointed out to the assessee before rejecting its registration application vide the impugned non-speaking order.

4.

That the impugned order passed by Ld. CIT Exemptions was a non-speaking order, as it failed to provide a valid reason or plausible explanation for rejecting the application for registration filed by the assessec.

5.

The assessee craves leave to alter, amend or any other grounds of appeal either before or during the course of hearing.

3.

Ld. Counsel for the assessee at the outset submitted that the Ld. CIT(E) rejected for registration u/s.12AB of the Act by passing order which is in violation of principle of natural justice. Ld. Counsel for the assessee submitted that registration u/s.12AB of the Act was denied by observing that the assessee had failed to file details/information as required by the notices to prove the genuineness of the charitable activities, and commencement of activities. Ld. Counsel for the assessee submitted that this observation of the Ld. CIT(E) is not correct for the reason that the assessee has filed all the necessary details called for and such details are placed at pages -13 to 103 of the paper book.

4.

Therefore, the Ld. Counsel submits that since the assessee had furnished all the necessary details as required by the Ld. CIT(E) which are placed in the paper book pages 13 to 103 there is no justification in rejecting the application for registration u/s.12AB of the Act. The Ld. Counsel thus, submitted that in the interest of justice the matter be restored to the file of the Ld. CIT(E) to consider all the details which are placed at pages 13 to 103 of the paper book and decide the issue afresh after providing an opportunity to the assessee.

5.

On the other hand the ld. DR has no serious objection in restoring the matter back to the file of the Ld. CIT(E) for fresh consideration.

6.

Heard rival contentions and perused the order of the Ld. CIT(E) as well as the documents furnished by the assessee which are placed at pages 13 to 103 of the paper book. On perusal of the paperbook it is observed that the assessee has furnished following documents before the Ld. CIT(E) :-

7.

We observed that the assessee had furnished all the necessary documents to prove the activities carried out by the assessee and charitableness of the said activities.

8.

On perusal of the order of the Ld. CIT(E) we find that none of these documents were considered by the Ld. CIT(E) while disposing off the application for registration u/s. 12AB of the Act. Thus, in the interest of justice we restore the issue to the file of the Ld. CIT(E) who shall consider the documents furnished by the assessee and decide the issue afresh and in accordance with law and decide application for registration u/s.12AB of the Act after considering all these documents and after providing adequate opportunity of being heard to the assessee.

9.

In the result, the appeal of the assessee is allowed for statistical purpose. Page | 5

Order pronounced in the open court on 15.05.2026.

Sd/- Sd/- [SANJAY AWASTHI] [C.N. PRASAD] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 15.05.2026

NEHA , Sr.P.S.* Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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