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Om Arohanam Sanstha, Delhi vs CIT | s.12AB, 80G | ITAT Delhi 2025 | BharatTax

OM AROHANAM SANSTHA,DELHI vs. CIT(EXEMPTIONS), DELHI

ITA 4051/DEL/2025Status: DisposedITAT Delhi10 October 2025Bench: SHRI MAHAVIR SINGH, HON’BLE (Vice President), SHRI AVDHESH KUMAR MISHRA (Accountant Member)4 pages

AI SummaryPartly Allowed

Facts

The assessee society filed applications for registration under Section 12AB and approval under Section 80G of the Income Tax Act. The CIT(E) rejected these applications, citing the assessee's failure to provide required details and documents despite opportunities. The provisional registration granted earlier was also cancelled.

Held

The Tribunal noted the assessee's failure to comply but also considered the society's objectives and the purpose of registration for socio-economic welfare. It was held that the assessee deserved another opportunity to be heard.

Key Issues

Whether the CIT(E) was justified in rejecting the registration and approval without granting a reasonable opportunity of being heard, especially when the assessee is a society with charitable objectives.

Sections Cited

12AB, 80G, 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’: NEW DELHI

Before: SHRI MAHAVIR SINGH, HON’BLE & SHRI AVDHESH KUMAR MISHRA

Hearing: 10/10/2025Pronounced: 10/10/2025

ORDER PER AVDHESH KUMAR MISHRA, AM These appeals are inter-connected as these contain common facts. Therefore, these appeals were heard together and are being disposed off by this common order.

2.

These appeals filed by the assessee relating to Assessment Years (AY) 2022-23 to 2024-25 are directed against orders dated 16.12.2024 of the Commissioner of Income Tax (Exemption), New Delhi [‘CIT(E)’].

3.

Vide these appeals, the assessee has challenged the (i) rejection of registration under section 12AB of the Income Tax Act, 1961 (‘Act’) and (ii) denial of approval under section 80G of the Act. 1 & 4051 /Del/2025 Om Arohanam Sanstha 4. The relevant facts giving rise to these appeals are that the assessee is a society. It filed an application for registration under section 12A(1)(ac)(iii) of the Act on 29.06.2024, which was rejected by the Ld. CIT(E) on the reasoning that the assessee had failed to file requisite details, documents, etc. though many opportunities of being heard were provided to it. The relevant part of order of the Ld. CIT(E) reads as under: -

1.

“2. As the applicant has failed to file details/information required by the notices referred above as on date, in support of genuineness of the activities, the application filed in Form 10AB for grant of registration u/s 12A(1)(ac)(iii) is rejected and the provisional registration granted vide order dated September 24, 2021 having Unique Registration Number AABAO6078JE20210 issued for the period from AY 2022-23 to 2024-25 is also cancelled.” 4.1 The Ld. CIT(E), vide impugned orders, has not only rejected the application for regular registration but has also rejected the provisional registration granted to the applicant for AYs 2022-23 to 2024-25 vide order dated 24.09.2021. Consequentially, the Ld. CIT(E) did not grant approval under section 80G of the Act.

Before us, none appeared on behalf of the assessee. Therefore, we heard Ld. Senior Departmental Representative (‘Sr. DR’), who defended the impugned orders. The Ld. Sr. DR placed emphasis on the order of the CIT(E) and submitted that the appellant assessee failed to ensure any compliance before the Ld. CIT(E) though sufficient opportunities of being heard were provided to it; hence the registration had been rightly rejected. The Ld. DR therefore, prayed for dismissal of both appeals. 2 & 4051 /Del/2025 Om Arohanam Sanstha 6. We have heard the Sr. DR and perused the case records. We have taken note of the non-compliance of the appellant assessee before the Ld. CIT(E). As submitted by the appellant assessee, the society was formed on 17th March, 2021 with the main objects of assisting, educating and rehabilitating and providing medical assistance to handicapped citizens of Bharat. It has been claimed by the appellant assessee that it is also engaged in charitable activities. The purpose of granting registration to various trust/society, etc. under the Act is to provide welfare to one and the all in the society to achieve the directive principles of the state policy. The AY 2022-23 is the first year after the existence of the appellant assessee and therefore, it has not carried out much activities as it has not had sufficient fund to do so. At the initial stage, the objectives for which the appellant assessee existed needs to be looked into rather than the genuineness of expenses, which is the domain of the Assessing Officer. Granting of (i) registration under section 12AB of the Act and (ii) approval under section 80G of the Act enhances the socio-economic welfare in the society. Therefore, in the interest of justice and considering all the afore- stated observations, we are of the considered view that the appellant assessee deserves reasonable opportunity of being heard to make shortcomings or non-compliances. In view thereof, without offering any comment on merit of the case, we deem it fit to set aside both impugned orders and remit both matters back to the file of the Ld. CIT(E) for de-novo consideration of (i) registration under section 12AB of the Act and (ii) 3 & 4051 /Del/2025 Om Arohanam Sanstha approval under section 80G of the Act. Hence, we Order accordingly. The appellant assessee should ensure compliances during the remanded proceedings before the Ld. CIT(E). The Ld. CIT(E) is also required to provide reasonable opportunities of being heard to the appellant assessee before deciding the case on merit.