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Facts
The assessee filed for registration under Section 12AB(1)(b)(ii) of the Income Tax Act, 1961. The CIT(E) rejected the application as the assessee failed to provide details of its activities. The CIT-DR supported the CIT(E)'s order, noting that the assessee received grants but spent them on administrative expenses.
Held
The Tribunal held that in the interest of natural justice, the assessee should be given one more opportunity to submit details of its charitable activities. The order of the CIT(E) was set aside, and the matter was restored for fresh adjudication.
Key Issues
Whether the assessee should be granted registration under Section 12AB(1)(b)(ii) despite failing to provide sufficient details of its charitable activities to the CIT(E)?
Sections Cited
12AB(1)(b)(ii), 12A(1)(ac)(iii), 12A
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
O R D E R
PER MANISH AGARWAL, AM:
This appeal is filed by the assessee against the order of Ld. Commissioner of Income Tax (Exemption), Delhi [CIT(E), in short] dated 29.01.2025 rejecting the approval/registration sought u/s 12AB(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).
From the perusal of the order, it is seen that the assessee filed Form 10B for granting registration u/s 12AB(1)(b)(ii) of the Act which stood rejected, as the assessee has failed to provide the details as sought for time to time and thus, the Ld. CIT(E) was the opinion that the assessee was not carrying any charitable activities.
None appeared on behalf of the assessee.
Ld. CIT-DR supported the orders of Ld. CIT(E) and submits that assessee received grants of Rs. 1,85,000/- which was spent on administrative expenses /Del/2024 Asthma Bronchitis and Cancer Foundation vs. CIT(E) like professional charges, program expenditure etc. and failed to establish that it was carrying out charitable activities. He thus requested for the confirmation of the order of ld. CIT(E) of denial the registration u/s 12A of the Act.
We have heard ld. CIT DR. From the perusal of the order of Ld. CIT(E), it is seen that the Ld. CIT(E) on various occasions asked the assessee to file detailed note on the activity carried out alongwith supporting evidences like bills / vouchers etc. to substantiate the charitable activities claimed to be carried out. However, since the assessee failed to file any such reply/information before the Ld. CIT(E), thus, the CIT(E) has denied the registration u/s 12A(1)(ac)(iii) of the Act.
Under these facts and circumstances of the case and in the interest of natural justice, in our considered opinion one more opportunity is to be given to the assessee to file all the relevant details before the ld. CIT(E) to establish the charitable activities carried out. Accordingly, we set aside the order of ld. CIT(E) and restored the matter back to the file of Ld. CIT(E) for fresh adjudication on merits in accordance with law after providing reasonable opportunities to the assessee. The Assesse is also directed to file the necessary evidences before the Ld. CIT(E) to establish the genuineness and charitable nature of its activities. With these directions appeal of the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assesse is allowed for statistical purposes. Order pronounced in the open court on 21.08.2025.