SHRI RAM SARUP GUPTA MEMORIAL TRUST,SOUTH WEST DELHI vs. CIT EXEMPTION, DELHI, CIVIC CENTRE, DELHI

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ITA 452/DEL/2025Status: DisposedITAT Delhi27 October 2025AY 2024-2025Bench: MS. MADHUMITA ROY, JUDICIAL MEMBER, SHRI NAVEEN CHANDRA (Accountant Member)5 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) did not provide adequate opportunity of being heard to the assessee and that the rejection of registration was not justified. The issues were restored to the file of the CIT(E).

What were the facts?

The assessee trust applied for registration under Section 12A(1)(b)(ii) and Section 80G(5) of the Income Tax Act. The CIT(E) rejected the applications, citing the deposit of funds with a textile company, earning interest, and failure to provide complete details to verify the genuineness of the trust's activities.

What were the issues?

Whether the CIT(E) erred in rejecting the registration applications without providing adequate opportunity of being heard. Whether the trust's activities and financial transactions were genuine.

Which sections of the Income-tax Act were involved?

Section 12A(1)(b)(ii),Section 80G(5),Section 11(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘B’ BENCH,

Before: MS. MADHUMITA ROY, & SHRI NAVEEN CHANDRA

For Appellant: Shri Hitendra Nahata, Adv
For Respondent: Ms. Pooja Swaroop, CIT-DR
Hearing: 09.09.2025Pronounced: 27.10.2025

Heard together (2 matters)

ITA No. 425/DEL/2025
ITA No. 452/DEL/2025

Read from the judgment's own cause title. This page is filed under one of them.

preferred against the order of the ld. CIT(E), Delhi dated 27.11.2024 rejecting the application for registration u/s 12A(1)(b)(ii) and u/s 80G(5) of the Income-tax Act, 1961 [the Act, for short]. [A.Y. 2024-25] [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T(E) 2. Since both the captioned appeals were heard together and pertain to same assessee, they are disposed of by this common order for the sake of convenience and brevity.

3.

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.

4.

Brief facts of the case is that the assessee filed an application dated 12.05.2024 in Form 10AB for regular registration u/s 12A(1)(ac)(iii) of the I T Act as also an application dated 15.05.2022 in Form 10AB for regular registration u/s 80G(5)(iii) of the I T Act. The ld. CIT(E) has rejected both the application for grant of registration u/s 12A(1)ac(iii) and 80G(5) of the Income-tax Act, 1961 [the Act, for short].

The CIT(E) found that the assessee had deposited Rs. 6,00,000/- with M/s Sagar Textile and earning an interest income of Rs. 54,000/- and considered it as commercial transactions and violation of section 11(5).

The CIT(E) further noted that the assessee has failed to file complete details, information and documents required by the notices to verify the genuineness of the activities of the trust. The CIT (Exemption), thereafter rejected the registration applications vide order dated 27.11.2024. [A.Y. 2024-25] [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T(E) 5. The assessee is aggrieved and has come in appeal before us and submitted that the ld. CIT(E) did not consider the reply of the assessee nor its annexures and passed order. The ld AR vehemently argued that the ld. CIT(A) was not right in rejecting the applications of the assessee for registration 12AB(1)(b)(ii) and u/s 80G of the Act and submitted that the ld. CIT (Exemption) rejected the applications without granting any opportunity of being heard to the assessee.

6.

Per contra, the ld. DR relied upon the orders of the ld. CIT(E).

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. The rejection of grant of registration by ld. CIT(A) is not justified as the ld. CIT(E) has not given adequate opportunity of being heard to the assessee which is apparent from the record. Accordingly, in the interest of justice and fair play, we restore the issues to the file of the ld. CIT(E). The assessee is directed to furnish the necessary documents for verification and the ld. CIT(E) is 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.

ITA No. 425/DEL/2025 [A.Y. 2024-25] [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T(E) 8. In the result, appeals of assessee in and 452/DEL/2025 are allowed for statistical purposes.

The order is pronounced in the open court on 27.10.2025.

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