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Facts
The assessee's appeals are against the CIT(E)'s order rejecting their application for grant of registration and renewal of registration under the Income-tax Act. The CIT(E) rejected the applications without providing an adequate opportunity of being heard to the assessee, despite the assessee submitting documents to prove the genuineness of its activities.
Held
The Tribunal held that the CIT(E)'s rejection of the registration and renewal applications was not justified due to the lack of an adequate opportunity of being heard. The issues were restored to the file of the CIT(E) for fresh consideration after providing the assessee with a proper hearing and verification of documents.
Key Issues
Whether the CIT(E) erred in rejecting the registration and renewal applications without affording a reasonable opportunity of being heard to the assessee.
Sections Cited
12A, 12A(1)(ac)(iii), 12AB(1)(b)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘B’ BENCH,
Before: MS. MADHUMITA ROY, & SHRI NAVEEN CHANDRA
preferred against the order of the ld. CIT(E), Delhi dated 27.09.2023 rejecting the application for grant of registration u/s 12A(1)(ac)(iii) of the Income-tax Act, 1961 [the Act, for short] and renewal of registration u/s 12A of the Act respectively.
Page 1 of 5 & 287/DEL/2025 Shri Bhagwan Rishabdev Charitable Trust Vs. ITO 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.
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.
The assessee has filed an affidavit for condonation of delay. The reasons for delay in filing appeal stated by the assessee seem to be reasonable. Accordingly, we condone the delay.
At the very outset, the ld. counsel for the assessee submitted that the ld. CIT(E) has rejected the application for grant of registration u/s 12A(1)ac(iii) of the Income-tax Act, 1961 [the Act, for short] as 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 assessee also filed Form 10AB and applied for registration u/s 12A(1)(ac)(iii) of the Act. The ld. CIT (Exemption) issued notices and asked to furnish several documents to which the assessee filed its reply by furnishing the documents as called for.
Page 2 of 5 & 287/DEL/2025 Shri Bhagwan Rishabdev Charitable Trust Vs. ITO 7. The CIT (Exemption) rejected the registration applications vide order dated 27.09.2023 without granting any opportunity of being heard to the assessee.
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. CIT(A) was not right in rejecting the applications of the assessee for registration 12AB(1)(b)(ii) and application for renewal u/s 12A of the Act.
Per contra, the ld. DR relied upon the orders of the ld. CIT(E).
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) and renewal of registration 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.
Page 3 of 5 & 287/DEL/2025 Shri Bhagwan Rishabdev Charitable Trust Vs. ITO
In the result, appeals of assessee in and 287/DEL/2025 are allowed for statistical purposes.
The order is pronounced in the open court on 04.09.2025.