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Facts
The assessee, a Trust, applied for registration under Section 12AB(1)(b)(ii). The CIT(E) rejected the application, stating that the assessee did not respond to notices and failed to establish the genuineness of its charitable activities. The assessee appealed this decision.
Held
The Tribunal found that the CIT(E) did not provide adequate opportunity for the assessee to be heard and that the rejection was not justified without examining the provided documents. Therefore, the issue of registration was restored to the CIT(E) for fresh adjudication.
Key Issues
Whether the CIT(E) was justified in rejecting the registration application without affording proper opportunity of hearing and proper examination of documents. Whether the assessee's activities were of a genuine charitable nature.
Sections Cited
12AB(1)(b)(ii), 12AB(1)(ac)(iii), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: SHRI CHALLA NAGENDRA PRASAD, & SHRI NAVEEN CHANDRA
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-
This appeal by the assessee is preferred against the order of the ld.
CIT(E), New Delhi dated 27.03.2025 rejecting the application for registration u/s 12AB(1)(b)(ii) of the Income-tax Act, 1961 [the Act, for short].
Sadvipra Samaj Seva Vs. CIT 2. Representatives of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules.
Briefly stated the facts of the case are that the assessee is a Trust.
The assessee filed an application dated 26.09.2024 in Form 10AB for registration u/s 12AB(1)(ac)(iii) of the Act. The applicant was issued a questionnaire dated 15.01.2025 with a request to furnish certain details / documents/clarifications in support of its claim of registration u/s 12AB(1)(ac)(iii) of the Act. The CIT(E) rejected the application filed in Form 10AB seeking for approval u/s 12AB(1)(ac)(iii) of the Act on the ground that the assessee did not respond to the notices and failed to satisfy genuineness of charitable nature of its activities.
The assessee is aggrieved and has come in appeal before us and submitted that the ld. CIT(E) did not consider the merits of the case, reply of the assessee dated 30.10.2024 and 13.03.2025 and passed order. It is the say of the ld AR that the ld. CIT(E) was not right in rejecting the applications of the assessee for registration 12A of the Act on the ground that the assessee has not furnished relevant documents.
Per contra, the ld. DR relied upon the orders of the ld. CIT(E).
Page 2 of 4 Sadvipra Samaj Seva Vs. CIT 7. We have given a thoughtful consideration to the order of the CIT (Exemption). We find that the assessee has filed several documents and evidences before us, which were filed by the assessee before the CIT(E), to establish the genuineness of the activities of the trust. We are of the considered view therefore, that the ld. CIT(E) has not given adequate opportunity of being heard to the assessee which is apparent from the record. The rejection of grant of registration by ld. CIT(A) is not justified without the examination of relevant documents/evidences filed by the assessee. Accordingly, in the interest of justice and fair play, we restore the issue of registration to the file of the ld. CIT(E) for a fresh adjudication.
The assessee is directed to furnish the necessary documents for verification and examination before the ld. CIT(E). The CIT(E) is also directed to examine the same and decide the issues as per the provisions of law after affording reasonable and sufficient opportunity of being heard to the assessee.
In the result, appeal of the assessee in is 8. allowed for statistical purposes.
Page 3 of 4 Sadvipra Samaj Seva Vs. CIT The order is pronounced in the open court on 10.12.2025.