LAWUNCLE CHAMBERS,DELHI vs. CIT EXEMPTION, DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”, DELHI

BEFORE SH. SUDHIR KUMAR JUDICIAL MEMBER, AND SH. MANISH AGARWAL, ACCOUNTANT MEMBER

ITA No.673/DEL/2026 Assessment Year: 2025-26 Lawuncle Chambers Vs. CIT (Exemptions) B-7/41, FF Safdarjung Enclave, New Delhi -110029 New Delhi PAN No. AAECL6855H (APPELLANT) (RESPONDENT)

Appellant by Sh. Rakesh Srivasstav, CA Respondent by Sh. Jitender Singh, CIT DR

Date of hearing: 27/04/2026 Date of Pronouncement: 29/04/2026 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the orders of the Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as “CIT(E)”] vide order dated 17.01.2026. 2. The assessee has raised the following ground in appeal as under: 1. That on facts and in law the Ld. CIT Exemption erred in law in rejecting the appellants application for registration u/s 80G solely on the alleged ground of

non-compliance without appreciating the charitable nature of the objects and activities of the appellant. 2. That the Ld. CIT exemption failed to consider that the appellant is duly engaged in charitable purpose within the meaning of section 2(15) and that no adverse finding has been recorded on the genuineness of its activities. 3. That the Ld. CIT exemption erred in concluding that the appellant did not submit information without verifying whether replies were filed on the portal and thus acted contrary of law and facts. 4That the rejection order is mechanical non speaking and passed without application of mind violating principle of natural justice. 5. That the Ld. CIT exemption failed to apricate that mere alleged non-compliance of questionnaires cannot be a valid ground to reject a statutory application for registration u/s 80G as held in multiple judicial precedents. 6. That the simultaneous cancellation of provisional registration (URN: AAECL6855HF20227) is without statutory and beyond the scope of proceedings under Form 10 AB. 7. That the impugned order ignores settled law that inquiry at the stage of registration is limited to examining the objects and genuineness of activities not to conduct an assessment like scrutiny. 8. That the impugned order deserves to be quashed being arbitrary ultra vires violative of natural justice and contrary to legislative intent. 9.The appellant craves leave to add amend vary or withdraw any ground during the course of hearing. 3. The Ld. CIT(E) rejected the application of the applicant for registration holding that assessee has failed to file the details as required in the notice. The Ld. CIT(E) has observed in his order as under: 3. As the assessee has failed to file details/ information required by the notices referred above, to verify the genuineness of the activities and the fulfillment of all the conditions laid down in clauses (i) to (v) of the Act. The application filed in

Form 10 AB for grant of approval under clause (iv) (B) of proviso to section 80G (5) of the Income Tax Act, 1961 is rejected. 4.Since the application filed in Form 10AB seeking approval clause(iv) (B) of proviso to section 80G(5) is hereby rejected, therefore the provisional registration granted vide order dated 21-01-2022 having Unique Registration Number AAECL6855HF20227 issued for the period from A.Y.2022-23 to A.Y.2024-25 is also cancelled. 4. Ld. AR of the assessee submitted that the application was rejected in the non-compliance which is not a valid ground for rejection the application. 5. The Ld. DR has submitted that the Ld. AR has failed to provide the relevant documents before the Ld. CIT(E), the application was rightly rejected. 6.We have heard the parties and perused the material available on record. The assessee has failed to file the required details/ information before the Ld. CIT(E) regarding the grant of approval under clause(iv) (B) of proviso to section 80G(5) of the Act. The Ld. CIT(E) rejected the exemption application under 80G of the Act in non-compliance. Since in the instant case the Ld. CIT(E) has dismissed the application in non-compliance therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate , its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. CIT(E) and

co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 29.04.2026.

Sd/- Sd/- (MANISH AGARWAL) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) SR BHATNAGGR Date: 29.04.2026 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI