SHAKTI SEWA SAMITI CHARITABLE TRUST,NEW DELHI vs. CIT(EXEMPTION), DELHI

ITA 4321/DEL/2026Status: DisposedITAT Delhi30 September 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that nobody appeared on behalf of the assessee. It observed that the CIT(Exemption) passed a non-speaking order on the ground that the assessee failed to file required details and information supporting the genuineness of the trust's activities. Considering the circumstances, the Tribunal was of the view that restoring the matter to the CIT(Exemption) for fresh consideration would be in the interest of justice. Accordingly, the Tribunal set aside the impugned order of the CIT(Exemption) with a direction to decide the matter afresh after affording a reasonable opportunity of being heard to the assessee and thereafter pass a speaking order in accordance with law. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Shakti Sewa Samiti Charitable Trust, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, against an order dated 05.03.2026 passed by the CIT(Exemption), Delhi. The CIT(Exemption) had rejected the assessee's application in Form 10AB for registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961. The rejection was based on the non-submission of documents to verify the charitable nature of the trust's objects and the genuineness of its activities. The assessment year in question is 2026-27. The assessee did not appear before the ITAT for the hearing.

What were the issues?

1. Whether the Ld. CIT(Exemption) erred in rejecting the application for registration under Section 12A of the Act without properly appreciating the facts and material on record? (Question of law and fact, relating to Section 12A(1)(ac)(iii)) 2. Whether the Ld. CIT(Exemption) failed to appreciate that the appellant trust is engaged in charitable activities and its objects are charitable in nature, making the rejection unjustified? (Question of law and fact, relating to Section 12A(1)(ac)(iii)) 3. Whether the Ld. CIT(Exemption) erred in concluding that the genuineness of activities and charitable nature of objects could not be verified, without making independent inquiry or granting a final effective opportunity to the appellant? (Question of law and fact, relating to Section 12A(1)(ac)(iii)) 4. Whether the Ld. CIT(Exemption) erred in raising objections regarding the absence of an irrevocable and dissolution clause in the trust deed and holding certain objects to be religious, thereby drawing adverse inference, without appreciating that incidental religious objects do not disentitle the trust from registration under Section 12A? (Question of law and fact, relating to Section 12A(1)(ac)(iii)) Assessee's contentions (as per grounds of appeal): The CIT(Exemption) failed to appreciate the facts and material, wrongly concluded that activities and objects were not verifiable, and did not provide an effective opportunity for inquiry. Incidental religious objects do not disqualify the trust. The impugned order is arbitrary and bad in law. Revenue's contentions: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI

Before: Sh. Ramit Kochar & Sh. Raj Kumar Chauhan

Hearing: 29.09.2026Pronounced: 30.09.2026

Per Raj Kumar Chauhan, Judicial Member:

The appeal by the assessee is directed against the order dated 05.03.2026 of ld. CIT(Exemptions), Delhi wherein the application dated 26.09.2025 in Form 10AB for registration u/s 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) was rejected due to non-submission of documents for verification of charitable nature of objects as well as genuineness of activities.

2.

Aggrieved by the said rejection order, the appellant has filed appeal before the Tribunal and raised the following grounds of appeal:

“1. That on the facts and in the circumstances of the case and in law, the Ld. CIT(Exemption) has erred in rejecting the appli

The order continues below.

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