ARYA SAMAJ TEMPLE SOCIETY SECTOR 11 DWARKA,DELHI vs. CIT EXEMPTION, DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI
Before: SHRI SATBEER SINGH GODARA
PER AVDHESH KUMAR MISHRA, AM
This appeal filed by the Assessee is directed against the order dated
29.02.2024 passed by the Commissioner of Income Tax (Exemption), Delhi
[hereinafter, the ‘CIT(E)’].
2. Following grounds have been raised in this appeal:-
“1. The Order dt. 29.02.2024 passed by the learned CIT(Exemption)
Delhi is bad in law and thus is liable to be annulled/cancelled, as the same is based upon an incorrect observation that SOCIETY was not registered under Old Regime of Income Tax Act which had been recorded in para 5 of the said ORDER.
Note: It was a matter of record that an Order of registration u/s 12AA res
12400
21.12.2015
(No.
CIT(E)/2015-16/DEL-AR24833-
21122015/5407) from AY 2016-17 bad been passed by the then learned CIT(Exemption) Delhi,
Arya Samaj Temple Society
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2. The consequential findings of the learned CIT(Exemption) Delhi, as appearing in para 5 of the Order dt. 29.02.2024 (obtained the order for registration by misrepresentation of facts. In view thereof, the application in Form 10AB for registration is hereby rejected) and in para 6 of the Order dt.29.02.2024 (Since the applicant has obtained the Order for registration by misrepresentation of facts, the cancellation proceedings will be initiated separately) deserve to be cancelled.
On the peculiar facts of the case and in law, it may kindly be declared in clear terms that- (a) the Application filed by the assessee on 30.09.2023 in Form 10AB [wherein section code had been incorrectly mentioned as '02-Sub clause (iii) of clause (ac) of sub-section (1) of section 12A'] as well as the Order passed by the CIT(Exemption), Delhi in Form 10AD on 29.02.2024 w.r.t. they said Application, are treated as nonexistent and permanently inactive; and (b) the deduction u/s 80G, as may be claimed by the donors is admissible (as per their eligibility) on the basis of the order dt.10.03.2022 passed by the CIT (Exemption) Delhi in Form No.10AC.”
The relevant facts giving rise to this appeal are that the appellant/ assessee, existed since 2015, got registration under section 12AA r.w.s. 12A of the Income Tax Act, 1961 (hereinafter, the ‘Act’) vide order No. CIT(E)/2015-16/DEL-AR 24833-21122015/5407. Thereafter, it filed fresh application in Form No. 10AB for granting registration under section 12A(1)(ac)(iii) of the Act. Further, it also filed an application for granting approval under section 80G(5) of the Act. Thereafter, the assessee was required to file various details in pursuance of the notices issued from time to time. However, it failed to comply with some of the notices. Thereafter, the Ld. CIT(E) observing as under, reject the registration under section 12A(1)(ac)(iii) of the Act: “5. It is very pertinent to mention that the trust/society was created on 12.05.2015 and it was not registered under Old Regime of Income Arya Samaj Temple Society
3
Tax Act. Therefore, it was eligible to apply provisional certificate in sub-clause (vi) of clause (ac) of sub-section (1) of Section 12A of the Income Tax Act. But the applicant has applied in sub-clause (1) of clause (ac) of sub-section (1) of Section 12A of the Income Tax Act and obtained the order for registration by misrepresentation of facts. In view thereof, the application in Form 10AB for registration is hereby rejected.
Since the applicant has obtained the Order for registration by misrepresentation of facts, the cancellation proceedings will be initiated separately.”
Aggrieved, the assessee filed this appeal. The Ld. Authorized Representative (hereinafter, the ‘AR’) submitted that the Ld. CIT(E) had erred in mentioning incorrect facts in the impugned order. He categorically submitted that the observation of the Ld. CIT(E) as mentioned in the grounds of appeal extracted above clearly demonstrated that the Ld. CIT(E) had erred in drawing the conclusion based on the incorrect facts. Accordingly, he requested for granting the registration under section 12A(1)(ac)(iii) of the Act. 5. We have heard the rival contentions and have perused the material available on the record. The purpose of granting registration under section 12A of the Act and granting approval under section 80G of the Act is to provide/enhance the socio-economic welfare to achieve the directive principles of the state policy. We are of the considered opinion that the objectives for which the appellant/assessee existed have not been properly appreciated by the Ld. CIT(E) and the reasoning for rejection of registration under section 12A(1)(ac)(iii) of the Act is based on the incorrect & Arya Samaj Temple Society
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incomplete facts. Keeping in view the facts in entirety & afore-stated observations and in the interest of justice, we are setting aside the impugned order and restoring the matter back to the file of the Ld. CIT(E) for deciding the issue of registration under section 12A(1)(ac)(iii) of the Act afresh in light of complete & correct facts after affording reasonable opportunity of being heard to the appellant/assessee.Ordered accordingly.
6. In the result, this appeal is allowed for statistical purposes.
Order pronounced in open Court on 16 January, 2025. (SATBEER SINGH GODARA) (AVDHESH KUMAR MISHRA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 16/01/2025
Binita, Sr. PS