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Facts
The assessee filed applications for registration under Section 12A(1)(ac)(iii) and Section 80G(5) of the Income Tax Act, which were rejected by the CIT(E). The assessee filed fresh applications after the initial rejection, providing detailed responses to queries. However, the CIT(E) rejected the fresh applications solely on the ground that a previous application had been rejected.
Held
The Tribunal held that there is no statutory bar to filing a fresh application for registration when a previous one has been rejected. The assessee had filed a detailed reply to the queries, and the rejection was based on an unsubstantiated reason.
Key Issues
Whether the CIT(E) was justified in rejecting a fresh application for registration under Section 12A and 80G solely because a previous application was rejected, despite the assessee providing a detailed reply.
Sections Cited
12A(1)(ac)(iii), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘C’: NEW DELHI
Before: SHRI SUDHIR KUMAR & SHRI MANISH AGARWAL
Assessee by Written submission Department by Sh. Dayainder Singh Sindhu, CIT-DR Date of Hearing 21/08/2025 Date of Pronouncement 29/08/2025 O R D E R PER MANISH AGARWAL, AM: Both the appeals are filed by the assessee against the orders of the Ld. Commissioner of Income Tax (Exemption), Delhi [CIT(E), in short] dated 22.08.2024 rejecting the approval/registration sought u/s 12A(1)(ac)(iii) and u/s 80G(5) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).
The assessee has filed two separate appeals against the separate orders passed by the Ld. CIT(E) both dated 30.09.2024 wherein the assesse has challenged the action of the Ld. CIT(E) for rejection of approval/registration u/s 12A(1)(ac)(iii) and 80G(5) of the I.T. Act.
& 4786 /Del/2024 International Council for Education Research and Training vs. CIT(E) 3. From the perusal of the order, it is seen that the assessee has filed Form 10B for granting registration u/s 12A(1)(ac)(iii) on 30.09.2023 which stood rejected as the assessee has failed to provide the details as sought from time to time. Thereafter assessee filed fresh applications for registration u/s 12A(1)(ac)(iii) and 80G simultaneously on 29.04.2024. Assessee filed all the details vide letter dt. 26.08.2024 through e-filing portal of the assessee. However, Ld. CIT(E) rejected the same by observing that the application of the assessee was rejected on earlier occasion thus assessee cannot apply for approval again.
Before us, the Ld. AR of the assessee submits that though the assessee was not able to file details during first round of proceedings therefore, the application was rejected vide order dt. 30.9.2024. He further submits that after filing the fresh application on 29.04.2024, a detailed query letter was issued on 22.08.2024 which was duly replied by the assessee on 26.08.2024 however, the same was not considered and application was rejected for the sole reason that assessee cannot file fresh application when first application for registration was rejected. Ld. AR submits that there is no ban to file fresh application for registration u/s 12A in subsequent year and when the assessee has replied to all the queries made and no objection is raised about the charitable activities carried out by the assessee thus registration ought to have been granted by Ld. CIT(E). He prayed accordingly.
In reply, the Ld. CIT-DR supported the orders of Ld. CIT(E) and requested for the confirmation of the same. In the alternate, it is requested to remand the matter back to the file of ld. CIT(E) for verification of the documents field by the assessee for charitable nature of the activities carried out by the assessee.
We have heard the rival submissions and from the perusal of the order of Ld. CIT(E), it is seen that the Ld. CIT(E) solely for the reason that application filed earlier for registration was rejected had rejected the fresh application filed by the assessee without considering the detailed reply filed by the assessee. As & 4786 /Del/2024 International Council for Education Research and Training vs. CIT(E) there is no ban in the statute to file fresh application for registration u/s 12A when one application is rejected, we find no reason to reject the fresh application sole for this reason. It is further seen that assessee has filed detailed reply on 26.08.2024 in response to the notice dt. 22.08.2024, copy of both are placed before us in appeal set.
Under these facts and circumstances of the case and in the interest of natural justice, the matter is restored back to the file of Ld. CIT(E) for adjudication on merits in accordance with law after considering the details filed by the assessee and after providing reasonable opportunities to the assessee of being heard. The Assesse is also directed to file further evidences before the Ld. CIT(E) to establish the genuineness of its activity. With these directions both the appeals of the assessee are allowed for statistical purposes.
In the result, both appeals in and are allowed for statistical purposes. Order pronounced in the open court on 29.08.2025.