SHRI JAGESHWAR TRUST,DELHI vs. CIT(EXEMPTION), DELHI

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ITA 4030/DEL/2026Status: DisposedITAT Delhi22 June 2026AY 2027-283 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(E) violated the principles of natural justice by rejecting the application without affording an opportunity of hearing. The Tribunal set aside the order and remanded the matter for a fresh decision after giving the assessee a fair hearing.

What were the facts?

The assessee trust applied for registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application without issuing a show cause notice or providing a hearing, citing the absence of an irrevocability clause in the trust deed.

What were the issues?

Whether the rejection of registration by the CIT(E) without following principles of natural justice is valid. Whether the absence of an irrevocability clause in the trust deed is a valid ground for rejection without a hearing.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12AB/(1)(b)(ii)

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: 22.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 4030/Del/2026, A.Y. 2027-28 Shri Jageshwar Trust Vs. CIT (Exemption), 121, 1st Floor, Civic Centre, DLF Galleria, Minto Road, New Delhi Mayur Vihar Phase-1, Delhi �थायीलेखासं./जीआइआरसं./PAN/GIR No: AADTS6201Q Appellant .. Respondent Appellant by : None Respondent by : Shri Yashvendra Singh, CIT-DR Date of Hearing 22.06.2026 Date of Pronouncement 22.06.2026

O R D E R PER VIMAL KUMAR, JM: The appeal filed by the assessee is directed against the order dated 15.03.2026, passed under section 12AB/(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) of the Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as “the CIT(E)”].

P a g e | 2 ITA No. 4030/Del/2026 Shri Jageshwar Trust

2.

Heard both the parties and perused the material on record.

3.We observed that the Ld. CIT(E) rejecting the application filed in Form 10AB for grant for registration under section 12A(1)(ac)(ii) of the Income- tax Act, 1961 (hereinafter referred to as “the Act”) without issuing a show cause notice and without affording opportunity of hearing which is clear violation of the principle of natural justice. Ld. CIT(E) rejected the registration on the ground that trust deed of the appellant does not contain irrevocability clause. We observed that Hon’ble High Court of Bombay had held contrary to the action of the ld. CIT(E) in the case of Chamber of Tax Consultants vs. CIT(E) (2026) 184 taxmann.com 374 (Bom.)

4.

Ld. Departmental Representative relied on impugned order.

5.

From examination of record, it is crystal clear that principles of natural justice have not been followed by the appellant authority. 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. It is considered expedient to set aside the orders of the Ld. CIT(E) and restored the matter to the files of the ld. CIT(E) for a fresh decision in accordance with law, after affording fair

P a g e | 3 ITA No. 4030/Del/2026 Shri Jageshwar Trust

opportunity of hearing to the assessee. 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.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 22.06.2026

Sd/- Sd/- (S. RIFAUR RAHMAN) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30.06.2026 Binita, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI

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