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Income Tax Appellate Tribunal, DELHI BENCH “E”, DELHI
Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL
Date of hearing: 30/10/2025 Date of Pronouncement: 19/11/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Lucknow [hereinafter referred to as “CIT(E)”] vide order dated 20.12.2024 for A.Y. 2025-26.
The assessee has raised the following grounds in appeal:-
That the learned Commissioner of Income Tax (Exemptions) ["CIT(E)"] erred in law and on facts in cancelling the registration granted under Section 80G of the Income Tax Act, 1961, without appreciating that the appellant trust has been engaged in providing education to poor and needy children for several years and has always complied with the statutory provisions in a timely manner.
2. That the learned CIT(E) erred in holding that the appellant trust failed to file replies to the notices issued during the proceedings, without considering the fact that the non-filing was due to genuine reasons beyond the control of the appellant.
3. That the learned CIT(E) failed to appreciate that the appellant trust has been continuously engaged in bona fide charitable activities, and there was no material evidence to suggest that the activities were not genuine or charitable in nature.
4. That the learned CIT(E) erred in cancelling the registration under Section 80G merely on technical grounds without considering the substantial compliance and the genuine charitable activities carried out by the appellant trust.
5. That the cancellation of 80G registration is unjust, arbitrary, and against the settled principles of law, as upheld in various judicial pronouncements, where minor procedural lapses should not be the sole ground for cancellation when substantial compliance with law when charity is established.
6. That the appellant craves leave to add, alter amend or withdraw any grounds of appeal at the time of hearing.
3. The Ld. CIT(E) rejected the application of the applicant for registration as well as for provisional registration obtain by the applicant. The Ld. CIT(E) observed as under :-
1. 1. The above named trust had filed an application dated 29.06.2024 for registration under clause (iii) of first proviso to sub-section (5) of section 80 G of the Income –tax Act, 1961 in Form no. 10AB. These provisions are applicable where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier.
2. Accordingly vide letter dated 10.10.2024 certain clarifications were sought from the assessee but no reply has been filed by the assessee. Again a reminder notice has been issued on 11.11.2024 fixing the date of compliance on 18.11.2024 but no reply has been filed. Consequently, following the principal of natural justice a final opportunity has been provided vide notice dated 03.12.2024 fixing the date of compliance on 09.12.2024. However, till date no response has been received, neither any adjournment is sought, in this regard. It is noticed that assessee has repeatedly non complied the following notices as per table below :- Sl.No. Date of notice Compliance date Remark 1 10.10.2024 22.10.2024 No compliance 2 11.11.2025 18.11.2024 No compliance 3 03.12.2024 09.12.2024 No compliance
As the application has been submitted under sub clause (iii) of section 12A (1) (ac), above mentioned enquiry letters requiring such documents and information were sent to verify the genuineness of the activities as well as charitable nature and commencement of the activities. In absence of any reply charitable object and genuineness of the charitable activities of the assessee trust could not be proved.
Accordingly, the application filed by the assessee is hereby ‘rejected and provisional approval having approval no ADDTN2347QF20219 clause (iv) of first proviso to sub-section (5) of section 80G granted in form 10AC by the CPC, dated 06- October-2021 from AY 2022-23 to AY 2024-25, is also being cancelled.
4. The Ld. DR has submitted that the assessee has failed to provide the relevant documents before the Ld. CIT(E), the application was rightly rejected by the CIT(E).
We have heard the Ld. DR and perused the material available on record. In the ground No.2 the assessee has stated that the assessee has failed to file replies to the notices issued during the proceedings, without considering the fact that non filing was due to genuine reasons beyond the control of the assessee. In the interest of the justice and fair play we deem it fit to restore the issue to the file of CIT(E) with a direction to grant one final opportunity to the assessee to substantiate, its claim and decide the issue as per fact and law. The assessee is directed to co-operate with the proceedings before the Ld. CIT(E). The ground raised by the assessee is allowed for statistical purpose.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 19.11.2025.