VARA FOUNDATION,DELHI vs. COMMISSIONER OF INCOME TAX(EXEMPTION), DELHI

The assessee has filed two separate appeals against the separate orders passed by the Ld. CIT(E) both dated 31.01.2025 wherein the assesse has challenged the action of the Ld. CIT(E) for rejection of approval/registration u/s 12AB(1)(ac)(iii) and 80G(5) of the I.T. Act.

From the perusal of the order, it is seen that the assessee has filed Form 10B for granting registration u/s 12AB(1)(ac)(iii) which stood rejected as the assessee has failed to provide the details as sought for time to time and thus, 5. In reply, the Ld. CIT-DR supported the orders of Ld. CIT(E) and requested for the confirmation of the same.

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) asked the assessee to file details / documents / clarifications in support of its claim of registration u/s 12A(1)(ac)(iii) of the Income Tax Act. In compliance, assessee filed certain details. The ld. CIT(E) observed that assessee trust claimed expenses under the head “blood donation camp, distribution of books, distribution of foods, awareness camp of environment of pollution etc.” However, year wise complete details and bills thereof to substantiate the expenses were not filed. Assessee filed few copies of the bill. After perusing the same the ld. CIT(E) observed that in absence of precise details the genuineness of nature of activity being charitable cannot be determine. Ld. CIT(E) further observed that assessee has not submitted any prior intimation/ approval from the department for amending the trust deed. He thus finally observed that assessee has filed to submit complete reply to establish the genuineness of its activity being carried out for charitable purposes. The application for registration u/s 80G was rejected as the application for registration u/s 12A was rejected.

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 fresh adjudication on merits in accordance with law after providing reasonable 8. In the result, both appeals in ITA No.1308/Del/2025 and ITA No.1309/Del/2025 are allowed for statistical purposes.