DIYA FOUNDATION,DELHI vs. CIT EXEMPTION, DELHI

ITA 7470/DEL/2025Status: DisposedITAT Delhi28 April 20267 pages
AI SummaryRemanded

What were the facts?

The assessee, Diya Foundation, applied for renewal of registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application, stating the assessee failed to provide necessary details and that running a play school charging fees was a commercial activity, not charitable.

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in rejecting the application without affording an effective opportunity of hearing and by questioning the charitable nature of activities of an already registered entity. The Tribunal set aside the order and restored the matter to the CIT(E) for fresh adjudication.

What were the issues?

Whether the CIT(E) can reject a renewal application for registration under Section 12A without providing an adequate opportunity for hearing and by deeming fee-charging educational activities as non-charitable for an already registered entity.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12AB(1)(b)(ii)(B),Section 2(15),Section 12A,Section 12AA(1)(b),Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI RAJ KUMAR CHAUHAN

Hearing: 09/02/2026Pronounced: 28/04/2026

PER RAJ KUMAR CHAUHAN (J.M.):

1.

The appeal is directed against the order dated 29.09.2025 passed by the Commissioner of Income Tax (Exemption), Delhi wherein the application of the appellant dated 10.02.2025 in Form 10AB for registration u/s 12A(1)(ac)(ii) of the Income Tax Act, 1961 (in short ‘the 1 Diya Foundation Act’) was dismissed, as the applicant has allegedly failed to file details/ information which were necessary for said registration.

2.

Aggrieved by the impugned order, the assessee is in appeal raising following grounds:

“1. That on the facts and in the circumstances of the appellant's case, the learned Commissioner of Income tax (Exemption) Delhi, erred both in law and on facts in rejecting its ap

The order continues below.

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