FEDERATION OF INDIA MICRO AND SMALL AND MEDIUM ENTERPRISES,DELHI vs. CIT EXEMPTION, DELHI

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ITA 4444/DEL/2026Status: DisposedITAT Delhi29 June 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) rejected the applications without due consideration and proper application of mind, violating the assessee's right to natural justice. The impugned orders were set aside and the matter was remitted back to the CIT(E) for fresh adjudication.

What were the facts?

The assessee filed applications for registration under Section 12A and 80G of the Income Tax Act. The CIT(E) rejected these applications without providing adequate opportunity of being heard to the assessee. The assessee contended that its right to natural justice was violated.

What were the issues?

Whether the CIT(E) erred in rejecting the applications for registration under Section 12A and 80G without providing a reasonable opportunity of being heard to the assessee.

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

INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, ‘A’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA Nos.4444 & 4445/DEL/2026 िनधा�रण वष�/Assessment Year: -) FEDERATION OF INDIA MICRO CIT EXEMPTION AND SMALL AND MEDIUM - ENTERPRISES NEW DELHI-, DELHI Vs. B-4/161, SAFDARJUNG ENCLAVE, NEW DELHI-110029, DELHI अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of Assessee: AAATF1472H

अपीलाथ� �ारा/Appellant represented by: ��थ� �ारा/Respondent represented by: 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 25.03.2026 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.

2.

The appeal of the assessee vide ITA No.4445/Del/2026 is regarding the rejection of its request filed under section 80G(5)(ii) of the Act. The appeal of

ITA Nos.4444 & 4445/DEL/2026 FEDERATION OF INDIA MICRO AND SMALL AND MEDIUM ENTERPRISES the assessee vide ITA No.4444/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 accordingly requested that it be provided one last chance to defend its case and, the matter be considered for remission back to the ld. 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 fact that the matter included non-grant of adequate opportunity of being heard to the assessee.

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. The ld. Counsel vehemently argued that the ld. CIT(E) has crossed his brief while rejecting the application for grant of registration. It was

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ITA Nos.4444 & 4445/DEL/2026 FEDERATION OF INDIA MICRO AND SMALL AND MEDIUM ENTERPRISES argued that at this stage, the ld. CIT(E) was required to have satisfied with the object clause of the appellant trust. We have noted that the ld. CIT(E) has dismissed assessee’s application for grant of registration under section 12A and u/s 80G, inter alia, on account of non-compliance of the assessee to submit details. 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. Accordingly, the appeals of the assessee vide ITA No.4444/Del/2026 and vide ITA No. 4445/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

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ITA Nos.4444 & 4445/DEL/2026 FEDERATION OF INDIA MICRO AND SMALL AND MEDIUM ENTERPRISES

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