Loading judgment…
Facts
The assessee applied for registration under sections 12A(1)(ac)(iii) and 80G(5) of the Income Tax Act. The CIT(Exemption) rejected the applications because the assessee failed to provide requested details, including beneficiaries' lists and financial records.
Held
The Tribunal observed that the assessee failed to furnish the required information to the CIT(Exemption). However, to ensure principles of natural justice, the matter was restored to the CIT(Exemption) for fresh adjudication.
Key Issues
Whether the denial of registration under sections 12A(1)(ac)(iii) and 80G(5) by the CIT(Exemption) was justified on account of the assessee's failure to provide requisite documents and evidence.
Sections Cited
12A(1)(ac)(iii), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL
O R D E R
PER MANISH AGARWAL, AM:
The captioned two separate appeals are filed by the assessee against the separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Delhi [CIT(E), in short] dated 24.09.2025 wherein the assessee has challenged the action of the Ld. CIT(E) of rejecting the approval/registration sought u/s u/s 12A(1)(ac)(iii) and 80G(5) of the of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).
It is observed that Ld. CIT(E) has denied the registration u/s 12A(1)(ac)(iii) as the assessee has failed to provide the details as sought for time to time and thus, the Ld. CIT(E) was the opinion that the assessee has failed to substantiate the Centre for Public Initiative vs. CIT genuineness of its activity. Likewise in absence of the requisite details registration u/s 80G(5) was also denied.
Before us, the Ld. AR of the assessee submits that the assessee though was not able to file the details before the Ld. CIT(E), however, he requested that assessee may be granted one more opportunities to represent its case before the Ld. CIT(E) to file the documentary evidences as required by Ld. CIT(E).
In reply, the Ld. CIT-DR supported the orders of Ld. CIT(E) and requested for the confirmation of the same.
We have heard the rival submissions and perused the material before us. It is observed that Ld. CIT(E), on various occasions asked the assessee to file the details like list of beneficiaries of charitable activities undertaken, complete financials along with corresponding bills, cash & bank book/ledger etc. in support of its claim. However, the assessee has failed to file any such information before the Ld. CIT(E), thus, the CIT(E) has denied the registration u/s 12A(1)(ac)(iii) of the Act by observing that in absence of the details called for, the claim of charitable activities could not be verified.
Under these facts and circumstances of the case and in the interest of natural justice, the matter is restored back to the file of Ld. CIT(E) for fresh adjudication in accordance with law after providing reasonable opportunities to the assessee. The Assesse is also directed to file all the requisite information/evidences before the Ld. CIT(E) in order to establish the genuineness of the activity of assessee society. With these directions both the appeals of the assessee are allowed for statistical purposes.