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Facts
The assessee's appeals were against the orders of the CIT(E) rejecting their applications for registration under Section 12AB and approval under Section 80G. The appeals were filed after a delay, which the Tribunal condoned.
Held
The Tribunal condoned the delay in filing the appeals. The Tribunal restored the issues to the file of the CIT(E) to grant one final opportunity to the assessee to substantiate its claim, considering the totality of facts and circumstances.
Key Issues
Whether the CIT(E) rightly rejected the applications for registration and exemption for non-compliance, and whether a final opportunity should be granted to the assessee.
Sections Cited
12AB(1)(b)(ii)(B), 80G, 12A(1)(ac)(iii), 80G(5)(ii), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “C”, DELHI
Before: SH. M. BALAGANESH & SH. SUDHIR KUMAR&
Date of hearing: 11/09/2025 Date of Pronouncement: 19/09/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
These appeals by the assessee are directed against the respective orders both dated 09.12.2024 of the Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as “CIT(E)”] passed u/s. 12AB(1)(b)(ii)(B) and u/s. 80G of the Income Tax Act, 1961 (hereinafter referred as Act).
The appeal number 3040/Del/2025 is time barred by 67 days while the appeal no. 3041/del/2025 is time barred by 70 days. The assessee has filed the applications for condonation the delay. In the applications the assessee stated that the email ID and mobile number registered with the Income Tax Department were the CA, who acted on behalf of the Trust. The CA not checked the mail and did not inform the assessee. Ld. AR submitted that assessee has sufficient cause for not filing the appeals within time. The assessee has shown the sufficient cause for not filing the appeals within time. We find the merit of the contention of the assessee, and condoned the delay in filing the appeals and admit the appeals for adjudication. 2. The assessee has raised the following grounds in appeal number 3040/Del/2025 :
1. On the facts in the circumstances of the case and in law the order of the Learned Commissioner of Income Tax (Exemption, Delhi arbitrarily rejecting the application for renewal of provisional registration under section 12AB(1) (b) (ii(B) of the Income Tax Act,1961 misconceived, fallacious and illegal which must be quashed with the direction to grant the registration as sought. Ground raised in appeal no. 3042/Del/2025 as under:
1. On the facts in the circumstances of the case and in law the order of the Learned Commissioner of Income Tax (Exemption, Delhi arbitrarily rejecting the application for renewal of provisional registration under section 80G of the Income Tax Act,1961 misconceived, fallacious and illegal which must be quashed with the direction to grant the registration as sought.
The Ld. AR submitted that the Ld. CIT(E) rejected the applications of the applicant for registration as well as for provisional registration obtain by the applicant. The Ld. CIT(E) rejecting the registration application observed as under :- The applicant failed to file the details. Hence, the applicant was afforded another opportunity vide notice dated 02-12-2024, fixing the case for compliance on 06-12-2024. The applicant has again has failed to file the details as discussed.
In view of the above as discussed in para-3, the applicant failed to provide necessary details to support/justify its claim of having carried out charitable /religious activities, and therefore, the applicant has failed to satisfy the genuineness of the activities, the application filed in Form 10AB for grant of registration u/s 12A(1)(ac)(iii) is hereby rejected.
Since, the application filed in Form 10AB for grant of registration u/s 12A(1)(ac)(iii) is hereby rejected, the provisional registration granted vide order 23-09-2021 having unique Registration No. AACTN7434MF20218 issued for the period from 23-09-2021 to A.Y. 2024-25 is also cancelled. On the application of the 80 G the Ld. CIT(E ) observed as under The applicant failed to file the details. Hence, the applicant was afforded another opportunity vide notice dated 02-12-2024, fixing the case for compliance on 06-12-2024. The applicant has again has failed to file the details as discussed.
4. In view of the above as discussed in para-3, the applicant failed to satisfy the genuineness of the activities, the application filed in Form 10AB for grant of approval u/s 80G(5)(iii) is hereby rejected.
5. Since, the application filed in Form 10AB for grant of approval u/s 80G(5)(iii) is rejected, the provisional approval granted vide order 23- 09-2021 having unique Approval No. AACTN7434MF20218 issued for the period from 23-09-2021 to A.Y. 2024-25 is also cancelled.
The Ld. DR has submitted that the Ld. AR has failed to provide the relevant documents before the Ld. CIT (E), hence, the application was rightly rejected.
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 exemption application under 80G of the Act. Since in the instant case the Ld. CIT(E) has dismissed the appeal on account of non-compliance, therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem fit and proper to restore the issues 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 facts 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.
In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 19.09.2025.