HERNIA SOCIETY OF INDIA-NATIONAL, CHAPTER OF ASIA PACAFIC HERNIA SOCIETY,DELHI vs. CIT(EXEMPTION), DELHI

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ITA 3754/DEL/2026Status: DisposedITAT Delhi24 June 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(E) rejected the application without providing an opportunity of being heard to the assessee. The Tribunal directed the CIT(E) to grant an opportunity of hearing and decide the matter on merit.

What were the facts?

The assessee's application for registration under Section 12AB and 80G of the Income Tax Act was rejected by the CIT(E). The rejection was based on grounds related to unsecured loans and advances given for the society's objects.

What were the issues?

Whether the CIT(E) can reject registration under Section 12AB and 80G without affording an opportunity of hearing to the assessee. Whether alleged misutilization of funds is a ground for rejecting registration.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI VIMAL KUMAR

For Respondent: Shri Yashvendra Singh, CIT-DR
Hearing: 22/06/2026Pronounced: 24/06/2026

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA Nos. 3753 & 3754/Del/2026 (Assessment Year: 2026-27) Hernia Society of India-National, Vs. CIT(E), Chapter of Asia Pacafic Hernia Delhi Society, C-4/41, Safdarjung Development Area,South-West Delhi (Appellant) (Respondent) PAN: AAATH8026K

Assessee by : None Revenue by: Shri Yashvendra Singh, CIT-DR Date of Hearing 22/06/2026 Date of pronouncement 24/06/2026

O R D E R PER SHRI S. RIFAUR RAHMAN : 1. The assessee has filed these appeals against the order of the Learned Commissioner of Income Tax (Exemption), Delhi [“Ld. CIT(E)”, for short] dated 18.02.2026 for the u/s 12AB and 80G of the Income Tax Act, 1961 (the “Act” for short).

2.

Heard both the parties and perused the material on record. We observed that the ld. CIT(E) rejected the application for registration u/s 12AB of the Income-tax Act, 1961 (for short ‘the Act’) without giving any opportunity of being heard to the assessee.

3.

The ld AR submitted a written submission wherein, he submitted that the ld CIT(E) rejected the registration application filed by the assessee on the basis of some unsecured loans has been accepted and some advance has been given for the furtherance of the objects of the assessee. Further, the ld AR relied upon the decision of the coordinate bench of Chandigarh Tribunal in the

ITA Nos. 3753 & 3754/Del/2026 Hernia Society of India-National case of Pistan Devi Education Society Vs. CIT(E) in ITA No. 6250/Del/2026 wherein, the coordinate bench has held that if some funds of the assessee has been misutlised then the ld AO can deny the exemption available to the society but this cannot be a ground for rejection of registration. Hence, in our considered view and in the interest of justice, assessee should be given one more opportunity of being heard on merit. Therefore, we direct ld. CIT(E) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. We also direct assessee to make proper submissions and appear before the ld. CIT(E) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.

4.

Similarly, the registration u/s 80G was also rejected on the same ground. The assessee is in appeal before us by filing separate appeal vide ITA No 3755/Del/2026. We remit this issue also back to the file of ld. CIT(E) in the interest of justice. Both the issues under consideration may be decided as per law.

5.

In the result, the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on this 24th day of June, 2026 after the conclusion of the hearing.

Order pronounced in the open court on 24/06/2026.

-Sd/- -Sd/- (VIMAL KUMAR) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 24/06/2026 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT

ITA Nos. 3753 & 3754/Del/2026 Hernia Society of India-National 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi

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