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Facts
Two appeals were filed by assessees from the same group against the rejection of their applications for registration under Section 12AB of the Income Tax Act by the CIT (Exemptions). The CIT rejected the applications observing non-compliance with notices and failure to provide details to verify the genuineness of activities.
Held
The Tribunal noted that the assessee claimed to have furnished all necessary information, which the CIT(E) might have overlooked. The Department had no serious objection to restoring the issue. The Tribunal found it appropriate to restore the appeals to the file of the CIT(E) for reconsideration.
Key Issues
Whether the rejection of registration under Section 12AB was justified on grounds of non-compliance, or if the information furnished by the assessee was overlooked by the CIT(E).
Sections Cited
12AB, 12A(1)(ac)(iv), 12AB(1)(b)(ii)(B), 12A, 12(a)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI
Before: SHRI C.N. PRASAD & SHRI NAVEEN CHANDRA
ORDER PER C.N. PRASAD, JM, These two appeals are filed by the different assessee’s of a same group in denying registration u/s.12AB of the Act. Both the assessees have raised the following common grounds against rejection of registration u/s.12AB of the Act by the Ld. CIT (Exemptions) [herein after referred as “CIT (E)”] :-
That the Ld. CIT(Exemption), Delhi has grossly erred in law as well as on facts in rejecting the application for registration of trust filed by assessee u/s 12A(1)(ac) (iv) of the Act and also cancelling provisional registration issued earlier, by passing an impugned order u/s 12AB(1)(b)(ii) (B) of the Income Tax Act. 1961. In doing so he has failed to notice that assessee is very old charitable society having various building/staff and incurred expenditure utilized for social and charitable activities.
2. That the 1.d. CIT(Exemption), Delhi has grossly erred in law as well as on facts in ignoring facts and circumstances of the case and rejecting the application for registration of trust on frivolous and unreasonable grounds.
3. That the order passed by the Ld. CIT(Exemption), Delhi is bad in law and required to be quashed as no show cause notice was given to the assessee during the course of proceeding and thereby violating the Principles of Natural Justice.
4. The above grounds of appeals are independent of and without prejudice to each other and further the appellant craves leave to 4 add, alter, amend OR withdraw all OR any grounds herein OR add any further grounds as may be considered necessary either before OR during the hearing of these grounds.
The Ld. Counsel for the assessee at the outset submitted that inspite of the assessee furnishing various documentary evidences called for by the Ld. CIT(E), the Ld. CIT(E) dismissed the application for registration u/s.12AB of the Act by observing that the assessee did not comply with the notices. Referring to page-3 of the order of the CIT(E), the Ld. Counsel submitted that the Ld. CIT(E) observed that the assessee failed to file details/ information required by the notices to verify the genuineness of the activities, charitable objects and commencement of activities and, therefore, application filed in form No. 10AB for grant of registration u/s.12A is rejected. Ld. Counsel for the assessee referring to paper book furnished, submitted that the assessee had filed all necessary information required by the Ld. CIT(E) and the Ld. CIT(E) probably overlooked before rejecting the application for grant of registration u/s.12AB of the Act. The Ld. Counsel for the assessee stated that the issue may be restore to the file of the Ld. CIT(E) for reconsideration of the application filed by the assessee in the light of the submissions and evidences furnished by the assessee.
On the other hand the Ld. DR has no serious objection in restoring the issue in these appeals to the file of the Ld. CIT(E) for reconsideration of the claim of the assessee.
On hearing both the parties and perusing the materials placed before us and also on going through the order of the Ld. CIT(E), we observed that the Ld. CIT(E) denied the registration u/s.12A of the Act on the ground that the assessee did not furnish any details / information required as per the notices issued by him. However, it is contention of the assessee that the assessee had furnished following information which the Ld. CIT(E) overlooked :-
ITA No. 5000/Del/2025 A.Y. 2025-26
Therefore, considering the evidences placed before us and the submission and also the findings of the Ld. CIT(E), in our view it is appropriate to restore these two appeals to the file of the Ld. CIT(E) for reconsideration of the applications filed by the assessee for registration u/s.12A of the Act. Accordingly, we set aside the order of the Ld. CIT(E) and restore the issue in appeal to the file of the Ld. CIT(E) who shall pass fresh order after providing adequate opportunity of being heard to the assessee.
In the result, both the appeals are allowed for statistical purposes.
Order pronounced in the open court on 17.12.2025.