WEBPULSE FOUNDATION ,NAJAFGARH ROAD IND AREA, NEAR KLG PROPERTY, DELHI vs. DCIT CENTRAL CIRCLE 43(1), DELHI, CIVIC CENTRE,NEW DELHI

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ITA 3465/DEL/2025Status: DisposedITAT Delhi28 October 2025AY 2025-266 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) rejected the application due to non-compliance without granting a proper opportunity to be heard. Therefore, the matter was restored to the CIT(E) to provide one final opportunity to the assessee to present their case.

What were the facts?

The assessee filed an application for registration under Section 12AB. The CIT(E) rejected the application and provisional registration due to non-compliance with notices requesting details about the trust's activities and objects. The assessee claimed they were not given an adequate opportunity to be heard.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without providing adequate opportunity to the assessee. Whether the assessee's non-compliance warranted the rejection of the application.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E”, DELHI

Before: SH. S. RIFAUR RAHMAN & SH. SUDHIR KUMAR

For Respondent: Ms. Pooja Swroop, CIT DR
Hearing: 30/09/2025Pronounced: 30/09/2025

Date of hearing: 30/09/2025 Date of Pronouncement: 30/09/2025 ORDER

PER SUDHIR KUMAR, JUDICIAL MEMBER:

1.

1. This appeal by the assessee is directed against the order of the Commissioner Of Income Tax (E)-3, Delhi [hereinafter referred to as “Ld. CIT(E)”] vide order dated 21.03.2025 for Assessment year 2025-26.

2.

The assessee has raised the following grounds in appeal:-

1.

The following grounds of appeal are without

prejudice to one another. On the facts and circumstances of the Appellant's case and in law the Ld. CIT(Exemptions) erred in rejecting the application made by the applicant in Form 10AB u/s 12A(1)(ac)(iii) for seeking registration u/s 12AB of the Income Tax Act, 1961, for the reasons mentioned in the impugned order or otherwise.

2. The Appellant craves leaves to alter, amend withdraw

or substitute any ground or grounds or to add any new ground or grounds of appeal on or before the hearing.

3.

The brief facts of the case are that the assessee has filed an application in Form 10AB for registration u/s 12 A(1) (ac) (iii) of the Income Tax Act, 1961(in short “the Act”)

. The questionnaires was issued to the assessee to furnish the details /documents/ clarifications. In the compliance of the notice the assessee submitted the part reply. The Ld. CIT(E) after considering the part reply submitted by the assessee rejected the application for registration and also rejected the provisional registration. The Ld. CIT ( E) has observed in his order as under:

“3. The applicant was specifically requested to submit the reply by 07-03-2025 and also intimated that, no further opportunity will be granted being the limitation matter. The applicant has neither submitted any reply nor sought adjournment till the issuance of this order.

4.

As the assessee has failed to file details/ information required by the notice referred above, in support of genuineness of the activities, charitable objects, commencement of the activities, the application filed in Form 10 AB for grant of registration u/s 12A(1)(ac)(iii) is rejected.

5.

Since, the application filed in Form 10AB for registration u/s 12A(1)(ac)(iii) is rejected, therefore the provisional registration granted vide order dated 24-02-2022 having unique Registration Number AADCW1630JE20219 issued for the period from A.Y.2022-23 to 2024-25 is also cancelled.

6.

Ld. AR of the assessee submitted that the application was rejected without granted the opportunity of being heard to the assessee. Ld. DR has relied upon the order of the lower authority.

7.

We have heard both the parties and perused the material available on record. The assessee has filed the part details regarding the trust and did not comply the notice dated 02-12- 2024 by which, the Ld. CIT(E) rejected the registration application as well as the provisional registration of the assessee. Since in the instant case the Ld. CIT (E) has dismissed the appeal in non-compliance therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. 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 also directed to appear before the Ld. CIT(E) and co-operate in the proceedings. The grounds raised

by the assessee are accordingly allowed for statistical purposes.

8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 30.09.2025.

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