LALA GULSHAN LAL SARAF MEMORIAL FOUNDATION,DELHI vs. THE INCOME TAX OFFICER, DELHI

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ITA 4356/DEL/2026Status: DisposedITAT Delhi29 June 2026AY 2026-275 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) had rejected the applications without due consideration and proper application of mind, violating the assessee's right to natural justice. Therefore, the impugned orders were set aside.

What were the facts?

The assessee's applications for registration under Section 12A and 80G of the Income Tax Act were rejected by the CIT(E). The assessee contended that its right to natural justice was violated as it was not given a proper opportunity to be heard and to amend its trust deed.

What were the issues?

Whether the assessee was denied a reasonable opportunity of being heard and to amend its trust deed before rejection of its applications for registration under Section 12A and 80G.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G,Section 12AB(1)(b)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, ‘A’ NEW DELHI

Before: SHRI ANUBHAV SHARMA

Pronounced: 29.06.2026

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, ‘A’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA Nos.4356 & 4357/DEL/2026 िनधा�रण वष�/Assessment Year: 2026-27) LALA GULSHAN LAL SARAF THE INCOME TAX OFFICER MEMORIAL FOUNDATION WARD EXEMPTION 1(4), 1, JAI SINGH ROAD, CIVIC CENTRE Vs. ALAKNANDA, NEW DELHI- NEW DELHI-110001 110001, अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of Assessee: AAATL1856F

Ms. Mitika Chaudhary, Adv. & अपीलाथ� �ारा/Appellant represented by: Shri Harish Chaudhary, Adv. Shri Mohit Chaudhary, Adv. ��थ� �ारा/Respondent represented by: Shri Rajore Satish Chandra Ramsevak, CIT-DR सुनवाई की तारीख / Date of conclusion of hearing: 24.06.2026 घोषणा की तारीख / Date of pronouncement: 29.06.2026 ORDER PER BENCH

These two appeals by the assessee are directed against the order of the Ld. Commissioner of Income Tax(Exemption), New Delhi, [hereinafter referred to as ‘ld. CIT(E)] both dated 05.03.2026 passed under section 12AB(1)(b)(ii) and 80G of the Income Tax Act, 1961. The word ‘Act’ herein this order would mean Income Tax Act, 1961.

ITA Nos.4356 & 4357/DEL/2026 LALA GULSHAN LAL SARAF MEMORIAL FOUNDATION 2. The appeal of the assessee vide ITA No.4356/Del/2026 is regarding the rejection of its request filed under section 80G(5)(ii) of the Act. The appeal of the assessee vide ITA No.4357/Del/2026 is regarding the rejection of its request filed under section 12A(1)(ac)(ii) of the Act. As both the appeals are of the same assessee concerning common issues of rejection of its application under section 12A and 80G, they were heard together and for the purposes of convenience, adjudicated by this common order.

3.

At the outset, ld. Counsel for the assessee submitted that its right to natural justice has been violated in as much as due opportunity of being heard has not been given before rejecting its request for grant of registration u/s 12A and 80G of the Act. The ld. Counsel submitted that the main issue at hand was non- availability of irrevocability clause in the original trust deed and for which an amendment was required to be made. The appellant assessee had requested for time to amend the deed, which was not provided. The ld. Counsel placed before us the amended deed. The ld. Counsel further drew our attention to the decision of this Tribunal in the case of Radison India Charitable Foundation in ITA No.3976 and 3978/Del/2024, dated 22.01.2025 holding that the absence of irrevocable clause would not be fatal for denial of registration u/s 12A of the Act. The ld. Counsel accordingly requested that it be provided one last chance to defend its case and, the matter be considered for remission back to the ld.

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ITA Nos.4356 & 4357/DEL/2026 LALA GULSHAN LAL SARAF MEMORIAL FOUNDATION CIT(E). The ld. Counsel assured that full compliance shall be made to the statutory notices issued by the Revenue authorities.

4.

The ld. DR placed reliance upon the orders of the lower authorities. The ld. DR however could not controvert the factum of ex-parte decision of ld. CIT(E).

5.

We have heard rival submissions and perused the material available on record. We have noted that the Ld. CIT(E) has rejected applications of the assessee without due consideration of facts on records alluding towards a non- application of mind. We have noted that the ld. CIT(E) has dismissed assessee’s application for grant of registration under section 12A and u/s 80G purely on account of non-compliance of the assessee to provide the amended trust deed. The requested adjournment was not acceded by the ld. CIT(E). Reasonable opportunity of being heard is right of every tax payer. Be that as it may be in the interest of justice, we deem it appropriate to set-aside the impugned orders of the ld. CIT(E) and remit the matter of grant of registration u/s 12A as well as u/s 80G back to ld. CIT(E) for adjudication de novo in accordance with law. Due opportunity of being heard shall be given to the assessee. The assessee shall comply with all the statutory notices and any non-compliance shall be adversely viewed. The ld. CIT(E) is directed to also consider the decision of this Tribunal in the case of Radison India Charitable Foundation(supra) while readjudicating

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ITA Nos.4356 & 4357/DEL/2026 LALA GULSHAN LAL SARAF MEMORIAL FOUNDATION

the appeal. Accordingly, the appeals of the assessee vide ITA No.4356/Del/2026 and vide ITA No. 4357/Del/2026 are allowed for statistical purposes.

6.

Finally, both the appeals of the assessee are allowed for statistical purposes.

Order pronounced in the open court on 29th June, 2026.

Sd/- Sd/- [ANUBHAV SHARMA] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29.06.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,

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ITA Nos.4356 & 4357/DEL/2026 LALA GULSHAN LAL SARAF MEMORIAL FOUNDATION

1.

Date of dictation directly on computer of the Tribunal order 24.06.2026 2. Date on which typed draft order is placed before the dictating 24.06.2026 Member 3 Date on which typed draft order is placed before the other 24.06.2026 Member (in the case of DB) 4. Date on which the approved draft order comes to P.S/Sr.P.S 5. Date on which the fair Order is placed before the dictating Member for sign 6. Date on which the fair Order is placed before the other Member for sign ( in the case of DB) 7. Date on which the Order comes back to P.S./Sr.P.S for uploading on ITAT website 8. Date of uploading, if not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which order goes for xerox 11. Date on which order goes for endorsement 12. Date on which the file goes to the Superintendent/O.S. for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to dispatch section for dispatch the Tribunal Order 15. Date of dispatch of order 16. Date on which file goes to Record Room after dispatch the order

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