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Facts
The assessee, Naya Savera Samajik Sanstha, filed applications for registration under section 12A and approval under section 80G of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption) rejected both applications. The rejection for section 12A was based on the assessee filing under an incorrect clause and not disclosing a prior rejection. The rejection for section 80G was consequential to the rejection of the 12A application.
Held
The Tribunal observed that the rejections by the CIT(E) were made without due consideration of the facts and appeared to be a non-application of mind. In the interest of justice, the Tribunal set aside the impugned orders and remitted the matters back to the CIT(E) for adjudication de novo, after providing a due opportunity of being heard to the assessee.
Key Issues
Whether the rejection of the assessee's applications for registration under section 12A and approval under section 80G by the CIT(E) was justified, and whether the matter should be remanded for fresh adjudication.
Sections Cited
12A(1)(ac)(ii), 80G(5)(ii), 12AB(1)(b)(ii)(B), 80G(5)(ii)(b)(B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘A’: NEW DELHI
Before: MS. MADHUMITA ROY
ORDER PER AMITABH SHUKLA, AM,
These two appeals by the assessee are directed against the order of the Ld. Commissioner of Income Tax(Exemption), New Delhi [hereinafter referred to as ‘ld. CIT(A)] both dated 11.12.2025 passed under section 12A and 80G of the Income Tax Act, 1961, for the Assessment Year 2026-27. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
That on the facts and circumstances of the case and in law, the Ld. CIT (Exemption) has erred in passing the order u/s 80G(5)(ii)(b)(B) of the Act rejecting the application filed u/s 80G(5)(ii) of the Income Tax Act, 1961 2. That the Ld. CIT(Exemption) has erred in law as well as on facts in cancelling the approval dated 24-09-2021, granted by the CPC, which was valid for the assessment years 2022-23 to 2026-27. 3. That the Ld. CIT (Exemption) has erred both on facts and in law in failing to appreciate that the assessee society has been genuinely and continuously carrying out its activities since its inception and has consistently complied with all statutory and regulatory requirements, including filing of returns and audit reports. No adverse finding has been recorded by the Ld. CIT (Exemption) regarding the genuineness of activities of the assessee. 4. That the Ld. CIT (Exemption) has erred both on facts and in law in rejecting the application of the assessee for approval under section 80G(5)(ii) merely on the ground that registration under section 12A was rejected, without independently examining the merits of the application under section 80G, and by holding that no separate notice or consideration was required, which is arbitrary and contrary to the provisions of law. 5. That the impugned order is arbitrary, illegal, bad in law and violation of rudimentary principle of contemporary jurisprudence. 3. The assessee has raised following grounds of appeal in ITA No.8730/Del/2025:-
1. That on the facts and circumstances of the case and in law, the Ld. CIT (Exemption) has erred in passing the order u/s 12AB(1)(b)(ii)(B) of the Act rejecting the application filed u/s 12A(1)(ac)(ii) of the Income Tax Act, 1961 2. That the Ld. CIT(Exemption) has erred in law as well as on facts in cancelling the approval dated 24-09-2021, granted by the CPC, which was valid for the assessment years 2022-23 to 2026-27.
That the Ld. CIT (Exemption) has erred both on facts and in law in failing to appreciate that the assessee society has been genuinely and continuously carrying out its activities since its inception and has consistently complied with all statutory and regulatory requirements, including filing of returns and audit reports. No adverse finding has been recorded by the Ld. CIT (Exemption) regarding the genuineness of activities of the assessee. Page 2 of 6
4. That the Ld. CIT (Exemption) has erred both on facts and in law in alleging that the assessee obtained registration from the CPC by way of misrepresentation of facts, without appreciating the true and bona fide reasons leading to the said registration and the surrounding facts and circumstances of the case.
5. That the Ld. CIT (Exemption) has erred both on facts and in law in rejecting the assessee application for registration under section 12AB(1)(b)(ii)(B) of the Act by alleging that the application was filed under an incorrect clause and that the assessee failed to disclose information regarding the rejection of earlier applications filed in the year 2018.
That the impugned order is arbitrary, illegal, bad in law and violation of rudimentary principle of contemporary jurisprudence. 4. The appeal of the assessee vide AY 2026-27 is regarding the rejection of its request filed under section 80G(5)(ii) of the Act. The appeal of the assessee vide for AY 2026-27 is regarding the rejection of its request filed under section 12A(1)(ac)(ii) of the Act. As both the appeals are of the same assessee concerning common issues of rejection of its application under section 12A and 80G, they were heard together and for the purposes of convenience, adjudicated by this common order.
We have heard rival submissions in the light of materials available on record. As per brief factual matrix, Naya Savera Samajik Sanstha, established in 20-07-2018, works for the upliftment and empowerment of weaker and marginalized sections of society, including SC, ST, OBC, minorities, women, children, and rural communities. The organization follows a participatory approach, promoting women's leadership, self-reliance, and community involvement. It actively conducts health-related programs such as Yoga Day, Health & Nutrition Awareness Camps, and the Swachh Jal Mission with water Page 3 of 6 purifier installation and WASH awareness in schools. The Sanstha also supports initiatives like Sansad Khel Mahotsav to encourage sports and youth development at the grassroots level. Through continuous efforts, it aims to improve living standards and promote sustainable rural development. The appeal of the assessee vide for AY 2026-27 is regarding the rejection of its request filed under section 12A(1)(ac)(ii) of the Act. The ld. Counsel for the assessee Ms. Agni Chaudhary, Advocate, argued that the rejection has been done on the premise that the applicant had indicated a wrong clause in its application as well as the fact that the applicant had not disclosed to the Department the rejection of its earlier application filed in 2018. Admitting the choice of wrong clause claimed to be on account of inadvertent omission, the ld. Counsel submitted that there was no specific column to give information of rejection in the application form. The ld. Counsel accordingly requested that the matter be remitted to ld. PCIT(Exemption) for adjudication denovo in accordance with law and after giving an opportunity of being heard. As regards, the appeal of the assessee vide AY 2026-27 is regarding the rejection of its request filed under section 80G(5)(ii) of the Act, the ld. Counsel argued that since the rejection is based upon rejection of application under section 12A, the same also deserves to be remitted to ld. PCIT(Exemption) for adjudication denovo in accordance with law and after giving an opportunity of being heard.
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Per Contra, the ld. DR placed reliance upon the orders of the lower authorities.
Upon consideration of orders of Ld. PCIT(E) contested by the appellant assessee through impugned appeals, we find that the applications have been rejected without due consideration of facts of records alluding towards a non- application of mind. Be that as it may be in the interest of justice, we deem it appropriate to set-aside the impugned orders of the ld. CIT(E) and remit the matter back to ld. CIT(E) for adjudication denovo in accordance with law. Due opportunity of being heard shall be given to the assessee. The assessee shall comply with all the statutory notices and any non-compliance shall be adversely viewed. Accordingly, the appeals of the assessee vide are allowed for statistical purposes.
Finally, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 09th April, 2026.
Sd/- Sd/- [MADHUMITA ROY] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 09.04.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent Page 5 of 6
PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,
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