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Facts
The assessee filed an application for renewal of provisional registration under Section 80G of the Income-tax Act. The CIT(E) rejected the application without considering certain documents submitted by the assessee. The assessee argued that the rejection was arbitrary.
Held
The Tribunal found that the CIT(E) had not considered all the documents submitted by the assessee. Therefore, in the interest of justice, the appeal was restored to the file of the CIT(E) for fresh decision after providing an adequate opportunity of hearing and considering the evidences.
Key Issues
Whether the CIT(E) rightly rejected the application for renewal of registration without considering all submitted documents, and if not, whether the matter should be remanded for fresh consideration.
Sections Cited
80G(5), 80G(5)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘B’ BENCH,
Before: SHRI YOGESH KUMAR US, & SHRI NAVEEN CHANDRA
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-
This appeal by the assessee is preferred against the order of the CIT(E), Delhi dated 25.06.2025.
The solitary grievance of the assessee in this appeal is that the order of the ld. CIT(E) rejecting the application for renewal of The Pradhan Mercantile Association Charity Fund Vs. The C.I.T(E) provisional registration u/s 80G(5)(ii) of the Income-tax Act, 1961 [the Act, for short] is illegal and sought to grant registration.
None appeared on behalf of the assessee but a written submission was filed. We decided to proceed ahead with the assistance of the ld. DR. The ld. DR was heard at length and the case records were carefully perused. 4. Brief facts of the case are that the assessee filed an application on 28.09.2024 in Form No. 10AB for approval under clause (ii) of first proviso to section 80G of the Income-tax Act, 1961 [the Act, for short]. The assessee was issued a questionnaire with a request to furnish certain details/documents/clarifications in support of its claim of registration. The assessee submitted the requisite details in support of genuineness of the activities of the charitable trust. The assessee was further asked to furnish copy of Form 10BE issued to the doners which was not submitted. Certain more queries remained uncompiled with and left with no choice, the ld. CIT(E) rejected the application filed in Form 10AB for grant of approval u/s 80G(5) of the Act.
At the very outset, the assessee in its written submission, argued that the CIT(E) has without explaining any infirmity or Page 2 of 5 The Pradhan Mercantile Association Charity Fund Vs. The C.I.T(E) deficiency in the details filed has rejected the registration. The assessee contended that the assessee could not file all the documents called for before the Id. CIT(E), and therefore, the application for grant of approval u/s 80G (5) of the Act was rejected. The Id. counsel for the assessee prayed for quashing of the appeal of CIT(E).
Per contra, the Id. DR relied on the order of the CIT(E). The ld DR however, did not raise any serious objection on setting aside the issue to the CIT(E) for reconsideration.
We have heard the rival submissions and have perused the relevant material on record. We find that the assessee has submitted certain documents as required by the ld. CIT(E) which the CIT(E) has not considered. In view of the factual matrix of the instant case, in the interest of justice and fair play, we deem it appropriate to restore the appeal to the file of the ld. CIT(E). The ld. CIT(E) is directed to decide the appeal afresh after affording a reasonable and adequate opportunity of being heard to the assessee and considering the evidences/material furnished by the assessee.
The assessee is directed to cooperate with the proceedings and furnish documents/evidence as required by the ld. CIT(E). Page 3 of 5 The Pradhan Mercantile Association Charity Fund Vs. The C.I.T(E) 8. In the result, appeal of the assessee in is allowed for statistical purposes.
The order is pronounced in the open court on 10.10.2025.