SETH HARI RAM RAMETI DEVI BHIWANI WALA CHARITABLE TRUST ,BHIWANI vs. CIT EXEMPTION, CHANDIGARH

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ITA 4802/DEL/2026Status: DisposedITAT Delhi23 September 2026AY 2027-283 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection order of the CIT(E) was indeed ex-parte, as evident from the conclusion drawn by the CIT(E) to reject the assessee's application on the premise of non-submission of required documents. The Tribunal acknowledged that no litigant benefits from the non-prosecution of their case. In the interest of justice, the Tribunal decided to remit the matter back to the file of the Ld. CIT(E) for re-adjudication de novo, in accordance with law, and by passing a speaking order. The assessee was granted liberty to file all necessary documents for registration and was directed to comply with all statutory notices, with non-compliance to be viewed adversely. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Seth Hari Ram Rameti Devi Bhiwani Wala Charitable Trust, filed an appeal against the order dated 23.02.2026 passed by the Commissioner of Income Tax (Exemption), Chandigarh (CIT(E)), rejecting its application for registration under section 12A of the Income Tax Act, 1961. The assessee contended that the impugned order was passed in violation of natural justice, as it was not provided with adequate opportunity to be heard. The assessee claimed that crucial documents, which were the basis for rejection, were now available and assured full cooperation with the revenue authorities. The assessee requested that the matter be remitted back to the CIT(E) for re-adjudication. The Revenue, while relying on the lower authority's order, did not strongly oppose this course of action.

What were the issues?

1. Whether the order passed by the CIT(E) under section 12A of the Income Tax Act, 1961, rejecting the assessee's application for registration, was passed in violation of the principles of natural justice due to inadequate opportunity of being heard? Assessee's Contention: The assessee argued that its right to natural justice was violated because the impugned order was passed without providing adequate opportunity to be heard. The rejection was based on the failure to provide crucial documents, which are now available. The assessee sought a remand to the CIT(E) for re-adjudication. Revenue's Contention: The Revenue, while relying on the order of the lower authorities, did not seriously oppose the assessee's request for the matter to be remitted back to the CIT(E).

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI ANUBHAV SHARMA

Pronounced: 23.09.2026

PER AMITABH SHUKLA, AM

This appeal filed by the Assessee is directed against the order of Ld. Commissioner of Income Tax (Exemption), Chandigarh, dated 23.02.2026 passed under section 12A of the Act. The word ‘Act’ herein this order would mean Income Tax Act, 1961.

ITA 4802/DEL/2026 SETH HARI RAM RAMETI DEVI BHIWANI WALA CHARITABLE TRUST 2. At the outset, ld. Counsel for the assessee submitted that its rights on natural justice have been violated in as much as the impugned order u/s 12A dated 23.02.2026 has been passed without giving adequate opportunity of being heard. It was contended that the rejection was done on the premise that assessee had failed to provide crucial documents in support of its contention. The ld. Counsel submitted that the same is now available. The ld. Counsel assured that full cooperation would be made to the Revenue authorities and that the matter be remitted back to the CIT(E) for re-adjudication. 3. The ld. DR though relying upon the order of lower authorities did not seriously oppose to the proposed move. 4. Heard rival parties in the light of material available on record. 5. On the issue of the rejection order being based upon insufficient opportunity, we have noted following conclusions drawn by ld. CIT(E) in her impugned order:- “5. In view of the foregoing facts and circumstances, including failure to furnish documentary evidence establishing genuineness of donations, failure to properly account for disposal of trust asset, failure to furnish rent agreement and supporting evidences regarding advance of Rs. 22,00,000/-, and failure to demonstrate genuine charitable activities, the undersigned is not satisfied about the genuineness of activities of the applicant trust within the meaning of section 12AB of the Income-tax Act, 1961. Accordingly, the present application of the applicant filed in Form 10AB u/s 12A(1)(ac)(ii) of the Act is rejected and registration is cancelled for the above discussed reasons. This rejection would also supersede any registration granted u/s 12AB of the Act by any authority at any earlier time…”

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ITA 4802/DEL/2026 SETH HARI RAM RAMETI DEVI BHIWANI WALA CHARITABLE TRUST 6. Thus, the fact of ex-parte order of CIT(E) is evident from the conclusion drawn by ld. CIT(E) to reject assessee’s application on the premise of non- submission of required documents extracted hereinabove. We are conscious that no litigant gains by non-prosecution of its case. In the interest of justice, we remit the matter back to the file of Ld. CIT(E) for re-adjudication de novo, in accordance with law and by passing a speaking order. The assessee shall be at liberty to file all or any documents deemed necessary for grant of registration and shall be bounden to comply with all the statutory notices and any non-compliance would be adversely viewed. Accordingly, the appeal of the assessee is allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 23rd September, 2026.

Sd/- Sd/- [ANUBHAV SHARMA] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23.09.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,

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