BIHARI LAL MEMORIAL EDUCATIONAL SOCIETY, GURGAON,HARYANA vs. THE CIT(EXEMPTIONS) CHANDIGARH, CHANDIGARH

ITA 658/CHANDI/2026Status: DisposedITAT Chandigarh25 August 2026AY 2026-20276 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E)'s order was based on auditor's observations and financial discrepancies, and the appellant did not provide sufficient explanations. Therefore, the matter was remanded back to the CIT(E) for a fresh decision.

What were the facts?

The assessee society applied for registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application citing defects in financial statements and adverse observations from the statutory auditor regarding the genuineness of activities.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application based on audit qualifications and financial discrepancies without providing sufficient opportunity for explanation. The genuineness of the society's activities and financial transparency were key concerns.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “ए” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: VIRTUAL MODE "ी लिलत कुमार, "ाियक सद" एवं "ी िवजय वमा" , लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM & SHRI. VIJAY VARMA, AM आयकर अपील सं./ ITA No. 658 /Chd/ 2026 िनधा"रण वष" / Assessment Year : 2026-27 Bihari Lal Memorial Educational बनाम The CIT (Exemptions) Society Chandigarh C/o C A Keshri Nandan Agarwal, 3029/18, Rambass, AMSKY & Co., Bharawas Gate, Near Saini Chopal, Rewari, Haryana-123401 "ायी लेखा सं./PAN NO: AAAAB6239P अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Rohit Garg, C.A राज" की ओर से/ Revenue by : Smt. Jaishree Sharma, CIT, DR सुनवाई की तारीख/Date of Hearing : 24/08/2026 उदघोषणा की तारीख/Date of Pronouncement : 25/08/2026 आदेश/Order PER VIJAY VARMA, A.M: This is an appeal filed by the Appellant against the order of the Ld. CIT(E), Chandigarh dt. 13/03/2026. 2. In the present appeal Appellant has raised following grounds:

1.

That the learned CIT(E) has erred both on facts and in law in rejecting the application for registration filed under Section 12A(1)(ac)(ii) of the Income Tax Act, 1961. 2. That the learned CI

The order continues below.

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