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Income Tax Appellate Tribunal, DELHI BENCH “E”, DELHI
Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL
Date of hearing: 03/11/2025 Date of Pronouncement: 03/11/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption),Delhi [hereinafter referred to as “CIT(E)”] vide order dated 30.12.2024. 2. The assessee has raised the following ground in appeal:-
1. That Ld CIT (Exemption)-Delhi has erred by rejecting application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 and cancellation of provisional registration granted vide order dated May 21, 2024 having Unique Number AAATO5616JE20241 issued for the period AY 2025-26 to AY 2027- 28 without considering the submissions of the appellant trust. 2. That the appellant craves the leave to add, modify, delete and amend any ground of appeal at the time of hearing.
3. The Ld. AR submitted that 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 :- “The applicant, Omkar Gaadi Foundation is a Trust incorporated on October 21, 2016. The applicant has obtained provisional registration vide CPC Order No AAAT05616JE20241 issued for the period from AY 2025-26 to AY 2027-28 under sub clause (vi) of clause(ac) of sub section (1) of Section 12A of the Income Tax Act, 1961. It has now filed an application on 03.06.2024 in Form 10AB for regular registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961. The main objects of the applicant company as per its Form 10AB areRelief of the Poor& Education and it has also submitted its copy of trust deed in this regard.
2. A questionnaire was issued on July 04, 2024, requesting the applicant to provide additional details, documents, or clarifications to support the registration claim, with a compliance deadline set for July 19, 2024. The applicant filed part submission on July 09, 2024. Another opportunityhas been provided on October 10, 2024 to file pending details along with specific detail, the applicant filed its submission timely.
3. On perusal of submissions of the applicant, following discrepancies has been noticed: a.) As per details provided at Point no. 10 of Form 10AB, which pertains to "Details of school/college/university/hospital/yoga institute/religious places/any other institution being managed/controlled/administered/owned by the applicant", the applicant has shown a property as "Omkar Gadi Math" at Post Bachipur, Brahmanigaon, S.O. Brahmang, Bhadrak, Odisha, India- 756165". The applicant has shown that the said property is not owned by the applicant. Further, the applicant trust has submitted a Memorandum of understanding dated 28.01.2021, which is between Mrs. Priyambada Satpathy (trustee) and Omkar Gaadi Foundation (the applicant), which is reproduced as under: a. That the property at Village and post Bachhipur, P.S Basudevpur, district Bhadrak Odisha pincode-756156 (herein after called property) is owned by Mrs. Priyambada Satpathy. b. That the above property is a plot for using is a religious purpose. c. That the second party approach to first party to construct the Dharmshala on the above property and using for religious purpose. d. That the first party agreed to allow to second party to construction of dharmshala on the above property and using for religious purpose without any consideration. AAATOS616J-OMKAR GADI FOUNDATION ITBA/EXM/F/EXM45/2024-25/1071687658(11 e. That further the both party agreed to this point that all the expenses for running/maintaining of dharmshala will be beared by the second party. From the perusal of the above MOU, it is seen that the applicant trust at present does not own the above land on which the applicant is carrying out construction of dharamshala and for using it for religious purposes. The applicant has not provided any ownership/property papers of the above land which states that the said land belongs to the Trust. In the absence of this, the said activity of the applicant violates the provisions of Section 13(1)(c) of the Income Tax Act, 1961. b.) From the perusal of the submissions of the applicant, it is seen that the applicant has not filed any justification for filing application for seeking registration of its trust u/s 12A of the Income Tax Act, 1961.
4. As the applicant has failed to justify the genuineness of the charitable activities carried out by it, the application filed in Form 10AB for grant of registration u/s 12A(1)(ac)(ii) is rejected and the provisional registration granted vide order dated May 21, 2024 having Unique Registration Number AAAT05616JE20241 issued for the period from AY 2025-26 to AY 2027-28 is also cancelled.
The Ld. DR has submitted that the Ld. AR has failed to provide the relevant documents before the Ld. CIT(E), the application was rightly rejected by the CIT(E).
We have heard both the parties and perused the material available on record. In the ground No.2 the Ld. AR has stated that he has submitted the relevant documents before the Ld. CIT(E) but some additional documents were not submitted due to lack of knowledge and unawareness of procedural requirements. On this basis the application was rejected because the assessee wants to file the additional documents which was summoned by the Ld. CIT(E). In the interest of the justice and fair play we deem it fit to restore the issue to the file of CIT(E) for fresh adjudication. One final opportunity is given to the assessee and the assessee is directed to co-operate with the Ld. CIT(E).
In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 03.11.2025.