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Facts
Lassiv Humanity Trust, a Delhi-based trust, initially obtained provisional registration. Subsequently, it applied for regular registration under Section 12A and approval under Section 80G of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected these applications on July 23, 2024, citing partial compliance and non-furnishing of requisite details, which led the assessee to file appeals.
Held
The Tribunal observed the similar facts across both appeals. Considering the appellant's request for remand, to which the Departmental Representative did not object, the Tribunal restored the matter back to the CIT(E) for fresh consideration. The CIT(E) is directed to provide the assessee due opportunity, and the assessee is instructed to make all necessary compliances.
Key Issues
Whether the CIT(E) erred in rejecting the applications for regular registration under Section 12A and approval under Section 80G due to alleged non-furnishing of details, and if the matter should be remanded for fresh consideration.
Sections Cited
12A(1)(ac)(iii), 80G, 10AD, Income Tax Act, 1961
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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