RESEARCH SOCIETY FOR THE STUDY OF DIABETES IN INDIA,PUNE vs. CIT(EXEMPTION), DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”, NEW DELHI

BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUTANT MEMBER

ITA NOS. 5009 & 5010/Del/2025 A.YR. : ---- RESEARCH SOCIETY FOR THE VS. CIT (EXEMPTION), STUDY OF DIABETES IN INDIA, NEW DELHI A-11, NARSIMHA HOUSING SOCIETY, 194, BOAT CLUN ROAD, PUNE-41001 [PAN: AAAAR1259B) (APPELLANT) (RESPONDENT)

Appellant by : Sh. Arun Khanna, CA & Sh. Ankit Goswami, CA Respondent by : Sh. Pravin Rawal, CIT(DR)

Date of hearing : 17.02.2026 Date of pronouncement : 17.02.2026

ORDER PER MAHAVIR SINGH, VP : These appeals by the assessee are directed against the separate orders of the Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as “Ld. CIT(E))”] passed u/s 12AB(4) and u/s 80G(5) of the Income Tax Act.

1961(herein after referred “the Act”) vide dated 30.6.2025 and 27.11.2024. 2. The brief facts of the case are that assessee M/s Research Society for the Study of Diabetes in India, Society came into existence on 29.7.1972 vide registration no. 5480 in the o/o Registrar of Societies, Delhi. Thereafter, the assessee obtained registration under section 12AA of the Act on 8.9.2009 from AY 2009-10 onwards. Later, the assessee obtained regular registration under Sub-clause (i) of clause(ac) of section 12A of the Act vide unique registration no. AAAR1259BE20117 from AY 2022-23 to AY 2026-27 and provisional approval under clause (iv) of first proviso to sub-section (5) of section 80G of the Act, on 15.10.2021 vide unique registration number AAAAR1259BF20214 from 15,10,201 to AY 2024-25. Thereafter, the assessee filed Form 10AB seeking regular approval under Clause (iii) of first proviso to sub-section (5) of section 80G of the Act on 14.5.2024. The said approval was not granted and application was rejected on 27.9.2024, as following discrepancies were noted. i) The assessee has not provided copy of complete set of society constitution on 29.7.1972 and only filed a cop of adopted Annual General Body Meeting held on 31st October, 2015. 2 | P a g e

(ii) Bills and vouchers of expenses claimed as per Income and Expenditure account during the last three years as on 31.3.2024, were not filed. (iii) Details of charitable activities carried out by it during the last three years as on 31.3.2024 were not filed. (iv) The beneficiary details of the charitable activities performed during the last three years as on 31.3.2024 were not provided. (v) The documentary evidences for contribution

received from pharmaceuticals companies

specializing in the field of Diabetes were not

provided.

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12AB (4) and has applied income of trust other than for its objects. He further noted that assessee company is utilizing the funds for own personal benefit (luxurious stay in plus five stars properties) for its members and is utilizing funds for own benefit, which is not part of objectives. Thus assessee has made violation as per Explanation (a) to section 12AB(4), thus the assessee has made violation as per Explanation e(ii) to section 12AB(4). He further noted that assessee company failed to reconcile different figures in its income and expenditure account and receipts and payment account. Assessee failed to maintain /reconcile its books of accounts in total disregard to provisions of Act and is activities are not being carried out in accordance with conditions subject to which it was registered and such compliance would fall in specified violation as described in explanation e(ii) of section 12AB(4). Thus, the assessee has made violation as per Explanation e(ii) of section 12AB(4), hence, the assessee has made violation as per Explanation e(ii) to section 12AB(4) of the Act. He held that the activities of the assessee company is not charitable but commercial and for personal benefit of its members and its activities are also not in accordance with object of the society, as the society is being run on profit motive. Therefore, the registration granted to the 4 | P a g e

applicant was cancelled u/s 12AB(4) of the Act for the from AY 2022-23 i.e. from the year registration is taken as per new tax regime. Against the aforesaid action, the assessee in appeal before us. 4. Ld. AR has submitted that the order of cancellation of registration passed u/s. 12AB(4) dated 30.6.2025 by the CIT(E)(, Delhi was bad in law which denying natural justice. He further submitted that initiation of cancellation proceedings of Registration was wrong, bad and is liable to the declared void-ab-initio. It was the further contention that the assessee was registered u/s 12A since 2009 and have been scrutiny assessed 5 times since then. Assessee got 80G provisional registration/approval in the year 2021 and approached the department in 2024 for regular approval u/s 80G to the society but the Ld. CIT has cancelled 80G approval vide order dated 27-11-2024. The cancellation of 80G Approval was made for short submission of the documents. Nothing was mentioned in the 80G cancellation order that assessee's nature of activity is not in conformity to the scheme of Income Tax act and also nothing was mentioned in that order about registration u/s 12A. Therefore, initiation of cancellation of valid registration u/s 12A to the society on 6-12-2024 without any valid reason and justification which is bad and 5 | P a g e

denied natural justice and liable to be quashed. It was further submitted that Ld CIT has been regular in mentioning in their show cause notices and also in the order that doctors just enjoy five star stays for doing society work which the assessee-society had denied that the it is the wrong and unjust allegation. Thus, this act tantamount to venegeance from CIT towards doctors society. It was further submitted that an order made in preconceived notion and unjust allegation is liable to be quashed. Further denying 80G approval should not be viewed on same premise that even 12A registration is to be cancelled. When society has been subjected to so many scrutiny assessments over the years and have regularly showing and detailing about its nature of activity, therefore initiation of cancellation proceedings is uncalled for and should be quashed as void-ab-initio. Assessee has separately approached ITAT against order of cancellation under section 80G. 5. Per contra, Ld. DR relied upon the orders of the

authorities below.

records. It transpires from record that it was the

contention of the assessee that assessee society

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comprised of doctors and was unaware that they should

get registered under section 12A to avail exemptions

under Income Tax Act. In the year 2009 assessee moved

an application and got registered under section 12AA on

08-09-2009 for Assessment Year 2009-10 onwards. It

reveals that the assessee was diligently adhering to all

the provisions of the Income Tax Act and had been

subject to scrutiny assessment for various Assessment

Years till date with no adverse finding with regard to the

working of the society under section 12A and was duly

allowed the exemptions under section 11 by various Tax

Officers for all those Assessment Years (totaling to 5)

where scrutinizes under section 143(3) were duly carried

by the tax officials. It was the contention of the assessee

that with new scheme of registration of societies, the

assessee again applied for regular registration under

section 12A on 18-08-2021 and the assessee obtained

regular registration again under Sub-clause(i) of clause(c)

of sub-section (1) of section 12A of the Income Tax, 1961 7 | P a g e

vide unique registration no. AAAAR1259BE20117 from

A.Y.2022-23 to A.Y. 2026-27. As assessee was not

registered under section 80G, hence applied for that as

well where provisional approval under Clause (iv) of first

proviso to sub-section (5) of section 80G of the Income

Tax Act, on 15.10.2021 vide unique registration number

(AAAAR1259BF20214) from 15.10.2021 to AY 2024-25

was obtained. Now assessee reproached the department

for regularization of 80G but said 80G approval was

declined by department, thereby cancelling the

provisional registration granted to it in Form No. 10AB

on 27.11.2024, holding that the applicant failed to satisfy

the genuineness of the activities to the queries raised and

was ambiguous regarding the nature of the activities

being carried out and further, separate proceedings for

cancellation of 12A registration, received from CPC was

initiated based on above discrepancies and a show

cause notice was issued on 06.12.2024 and the order for

cancellation order for FORM 10AC under section 12AB(4) 8 | P a g e

was passed on 30.06.2025. We find that Ld. CIT(E) noted

that the assessee had not provided copy of complete set

of society constitution on 29.7.1972 and only filed a copy

of adopted Annual General Meeting held on 31.10.2015,

bills and vouchers of expenses claimed Bills and

vouchers of expenses claimed as per Income and

Expenditure account during the last three years as on

31.3.2024, were not filed; the beneficiary details of the

charitable activities performed during the last three years

as on 31.3.2024 were not provided; the documentary

evidences for contribution received from pharmaceuticals

companies specializing in the field of Diabetes were not

provided, which does not demonstrates that assesse is

not doing charitable activities. However, it is settled law

for grant of registration u/s. 12 of the Act and grant of

approval u/s. 80G the CIT(E) must examine and

consider the facts that whether the assessee is doing

charitable activities or not, which is not done in this

case on the part of the CIT(E). The above discrepancies 9 | P a g e

shows that Ld. CIT(E) was not having proper evidence /

documents to examine and consider the facts and

circumstances of the case which prove the genuineness

of charitable activities and only pointing out some

discrepancies does not establish that the assessee

society has not done charitable activities. Even before us,

at the time of hearing, on query from the bench, the Ld.

AR was unable to produce the copy of assessee’s Bye

laws mentioning its aims and objects. In view of the

aforesaid factual matrix and in the interest of justice, we

deem fit and proper to remit back the issues to the files

of the Ld. CIT(E) with the direction to consider the issues

afresh in both the appeals, in accordance with law by

giving adequate opportunity of being heard to the

assessee. However, Assessee is directed to furnish the

complete details/evidences before the Ld. CIT(E) in

accordance with law and fully co-operate with him

during the proceedings, in order to canvass its case

properly. We hold and direct accordingly. 10 | P a g e

stand allowed for statistical purposes.

Order pronounced in the open court 17.02.2026. Sd/- Sd/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT SRBHATNAGGAR

Date: 29-04-2026