BABA LODI TRUST ,DELHI vs. CIT (EXEMPTION) , DELHI

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ITA 5936/DEL/2026Status: DisposedITAT Delhi23 June 20262 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that it would be in the interest of justice to restore the matter to the learned CIT(Exemptions) for fresh consideration. The reasoning was based on the observation that the CIT(Exemptions) had passed an ex-parte, non-speaking order and had proceeded to decide the case ex-parte despite an adjournment petition being filed by the assessee. The ITAT set aside the impugned order of the CIT(Exemptions) with a direction to decide the matter afresh. This decision mandates that the CIT(Exemptions) must afford a reasonable opportunity of being heard to the assessee and thereafter pass a speaking order in accordance with the law. The issue of whether the application for registration under Section 12A should have been granted or rejected on merits was left undecided by the ITAT, as the matter was remanded.

What were the facts?

The assessee, M/s Baba Lodi Trust, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench-E, challenging an order dated March 7, 2026, passed by the Commissioner of Income Tax (Exemptions), Delhi. This order rejected the assessee's application in Form 10AB for registration under Section 12A of the Income-tax Act, 1961. The ITAT noted that the CIT(Exemptions) had passed an ex-parte, non-speaking order. Furthermore, the CIT(Exemptions) proceeded to decide the case ex-parte despite the assessee filing an adjournment petition on the scheduled hearing date of February 10, 2026. The ITAT considered the arguments of both parties and the case records.

What were the issues?

1. Whether the order passed by the learned CIT(Exemptions) rejecting the assessee's application for registration under Section 12A of the Income-tax Act, 1961, is valid, considering it was passed ex-parte and was non-speaking? Assessee's Contentions: The assessee argued that the learned CIT(Exemptions) passed an ex-parte and non-speaking order. The assessee also contended that an adjournment petition was filed on the hearing date, but the CIT(Exemptions) proceeded to decide the case ex-parte. The assessee relied on the principle of natural justice and the need for a speaking order. Revenue's Contentions: The judgment records that the revenue's CIT-DR argued the case. However, the specific contentions of the revenue are not detailed in the provided text.

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.5936/Del/2026 Assessment Year N.A MIs Baba Lodi Trust, 503, 5th Floor, DDA, District Centre, Anand Vihar S.0 Laxmi Nagar, East Delhi, Delhi 110 092_ PAN AAATB8875E. (Appellant) Vs. Commissioner of Income Tax (Exemptions) , Delhi; (Respondent) Appellant by Respondent by Ms_ Kanishka Garg, CA Shri Raghunath, CIT-DR: Date of hearing Date of pronouncement 22.06.2026 22.06.2026 ORDER Per Bench: This appeal by the assessee is directed against the order of learned CIT(Exemption) , Delhi dated 7th 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 It is observed that the learned CIT(Exemptions) has passed an ex-parte non-speaking order. Moreover, when the case was fixed for hearing on 10th February, 2026 before the learned CIT(Exemptions) , the assessee has moved an adjournment petition before him on the same day. Inspite of that, learned CIT(Exemptions) proceeded to decide the case ex-parte: 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(Exemptions) for fresh consideration. Accordingly, we set 2 ITA No.5936/Del/2026 aside the impugned order of learned CIT(Exemptions) 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 22n June, 2026. Sdl- (MANISH AGARWAL) ACCOUNTANT MEMBER (MAHAVIR SINGH) VICE PRESIDENT Date 23.06.2026 VK

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