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Facts
Lassiv Humanity Trust, engaged in charitable activities, applied for regular registration under section 12A and approval under section 80G after obtaining provisional registration. The Commissioner of Income Tax (Exemption) rejected both applications, citing partial compliance and non-furnishing of requisite details, which the assessee disputed, claiming details were provided but not considered.
Held
The Tribunal found it appropriate to remand the case back to the CIT(E) for fresh consideration of the applications under section 12A and 80G. This remand includes providing due opportunity to the assessee and directing the assessee to make the necessary compliance.
Key Issues
Whether the CIT(E) was justified in rejecting the applications for registration under Section 12A and approval under Section 80G on grounds of non-compliance, and if the matter warranted a remand for fresh consideration.
Sections Cited
12A, 80G, 10AD, 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: MS. MADHUMITA ROY & SMT. RENU JAUHRI
2.1 Both the appeals related to rejection of application for registration u/s 12A(1)(ac)(iii) and approval u/s 80G of the Act. Since the facts in both the appeals are similar, these are being disposed off vide a common order.
2.2 Following grounds are raised in these appeals: -
1. That on the facts and circumstances of the appellant's case, Hon'ble CIT (Exemption), Delhi erred in rejecting the application filed in Form10AB vide order passed under section 10AD on 23.07.2024 along with provisional registration granted under section 12A(1)(ac) (iii) of the Income Tax Act, 1961 vide UR No. AACTL2565RE20221 valid from AY 2023-24 to 2025-26 arbitrarily and prejudicially without considering the submission and information submitted by the appellant only on the basis of conjecture and surmises. Thus, rejection of application and cancellation of provisional registration is completely bad in law and liable to be quashed.
2. That the appellant craves to add, alter, delete, modify or withdraw any of the above grounds of appeal.”
“1. That on the facts and circumstances of the appellant's case, Hon'ble CIT (Exemption). Delhi erred in rejecting the application filed in Form10AB vide order passed under section 10AD on 23.07.2024 along with provisional registration granted under clause (iv) of first proviso to section B0G(5) of the Income Tax Act, 1961 vide UR No. AACTL2565RF2022101 valid from 26.08.2022 to AY 2025-26 arbitrarily and prejudicially without considering the submission and information submitted by the appellant only on the basis of conjecture and surmises. Thus, rejection of application and cancellation of provisional registration is completely bad in law and liable to be quashed.
That the appellant craves to add, alter, delete, modify or withdraw any of the above grounds of appeal.”
Brief facts of the case are that the assessee is a registered trust in Delhi and engaged in providing relief to the poor and needy particularly those affected by violence, including terrorism. The assessee had applied for provisional registration by application dated 17.08.2022 which was granted on 26.08.2022. The assessees subsequently applied for regular registration in Form No. 10AB on 17th January, 2024. In response to the notices issued by Ld. CIT(E), Delhi seeking certain details/ documents, the assessee is stated to have made partial compliance. Therefore the assessee’s applications for registration u/s 12A as well as for approval u/s 80G were rejected by the CIT(E) on the ground that requisite details were not furnished.
Aggrieved with the orders of Ld. CIT(E), the assessee is in appeal before us.
Ld. AR has submitted that even though details sought by the Ld. CIT(E) to establish genuineness of the activities / property were submitted, these were not considered and the application for registration was rejected. He therefore, prayed that the matter may be remanded back to Ld. CIT(E) for fresh consideration. Ld. DR has not objected to this request of the assessee. Accordingly, in the interest of justice, we deem it appropriate to restore the matter back to Ld. CIT(E) for fresh consideration of the assessee’s application for registration u/s 12A as well as Section 80G after giving due opportunity to the assessee. The assessee is also directed to make requisite compliance before Ld. CIT(E).
In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in open Court on 13th December, 2024