INDIAN DIRECT SELLING ASSOCIATION,NEW DELHI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), NEW DELHI

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ITA 5755/DEL/2026Status: DisposedITAT Delhi29 June 2026AY 2026-272 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the order passed by the learned CIT(Exemption) was ex-parte and non-speaking. In the interest of justice, the Tribunal set aside the impugned order of the CIT(Exemption). The matter was restored to the CIT(Exemption) for fresh consideration. The CIT(Exemption) was directed to decide the matter afresh after affording a reasonable opportunity of being heard to the assessee and thereafter, pass a speaking order in accordance with the law. The ratio decidendi is that an ex-parte, non-speaking order rejecting a statutory application is unsustainable and requires reconsideration with due process. The operative direction is to set aside the order and remand the matter for fresh adjudication.

What were the facts?

The assessee, WS Indian Direct Selling Association, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench-E, challenging an order dated March 8, 2026, passed by the Commissioner of Income Tax (Exemption), Delhi. The impugned order rejected the assessee's application in Form 10AB for registration under Section 12A of the Income-tax Act, 1961. The assessment year in question is 2026-27. The ITAT noted that the CIT(Exemption) had passed an ex-parte, non-speaking order. After hearing both parties, the Tribunal decided to restore the matter to the CIT(Exemption) for fresh consideration.

What were the issues?

1. Whether the order passed by the learned CIT(Exemption) rejecting the assessee's application for registration under Section 12A of the Income-tax Act, 1961, is valid? Assessee's contention: The assessee argued that the order passed by the CIT(Exemption) was ex-parte and non-speaking, implying a lack of proper consideration and opportunity to be heard. Revenue's contention: The judgment records no specific contention from the revenue's side regarding the validity of the order. However, the revenue was represented by a CIT-DR.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH-E NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.5755/Del/2026 Assessment Year 2026-27 Ws Indian Direct Selling Association, 504, Manisha Building, 75-76, Nehru Place New Delhi 110 019. PAN AAATI1O2ZL. (Appellant) Vs. Commissioner of Income Tax (Exemption) , Delhi. (Respondent) Appellant by Respondent by Shri Navneet Kumar, CA. Shri Raghunath, CIT-DR: Date of hearing Date of pronouncement 23.06.2026 23.06.2026 ORDER Per Bench: This appeal by the assessee is directed against the order of learned CIT(Exemption) , Delhi dated 8th March, 2026 whereby the application of the assessee in Form 10AB for registration under Section 12A of the Income-tax Act, 1961 (hereinafter referred to as the Act') was rejected. 2 We have heard the arguments of both the sides and perused the material placed before uS_ It is observed that the learned CIT(Exemption) has passed an ex-parte non-speaking order. In the above circumstances, after hearing the arguments of both the sides and perusal of record, we are of the view that it would be in the interest of justice to restore the matter to learned CIT(Exemption) for fresh consideration_ Accordingly, we set aside the impugned order of 2 ITA No.5755/Del/2026 learned CIT(Exemption) with a direction to decide the matter afresh after affording reasonable opportunity of being heard to the assessee and thereafter, pass a speaking order in accordance with law. 3 In the result; the appeal of the assessee is allowed for statistical purposes. Decision pronounced in the open Court on conclusion of hearing on 23rd June; 2026. Sdl- (MANISH AGARWAL) ACCOUNTANT MEMBER (MAHAVIR SINGH) VICE PRESIDENT Date 29.06.2026 VK Copy _forwarded to: 1_ 2 . 3. 4 5_ Appellant Respondent CIT CIT(A) DR, ITAT Assistant Registrar

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