All India Siddhartha Welfare Centre vs CIT(Exemption), Delhi

PER RAMIT KOCHAR, AM:

This appeal is filed by the assessee against order passed by Learned Commissioner of Income Tax (Exemptions), Delhi [CIT(E), in short) dated 16.09.2025( DIN& Notice No. ITBA/EXM/F/EXM45/2025-26/1080759496(1) rejecting application filed by the assessee for seeking registration u/s 12A of the Income Tax Act, 1961 (“the Act” in short).

Brief facts of the case are that assessee is a charitable Trust incorporated on 12.04.1974. The assessee has filed an application dated 12.02.2025 in Form No.10AB for registration u/s 12A of the 1961 Act, before learned CIT(E). The Ld. CIT(E) issued questionnaire dated 10.03.2025 to the assessee with the request to furnishing certain details ,document and/or clarification in support of the claim of the registration u/s 12A of the Act. The assessee filed details. The ld. CIT(E) vide letter dated 27.08.2025 further asked assessee to submit specific details , documents and clarifications , but the assessee did not file reply. The ld. CIT(E) observed that the assessee’s earlier application in form No. 10AB was earlier rejected vide order dated 13.12.2024 , and provisional registration for the period from assessment year 2022-23 to 2024-25 was also cancelled. Thus, ld. CIT(E) observed that without provisional registration certificate u/s 12A, the present application filed by the assessee is infructuous.

Aggrieved, the assessee has filed appeal before the Tribunal. The Ld. Counsel for the assessee at the outset submitted that ld. CIT(E) did not give proper and adequate opportunity of being heard to the assessee . It was submitted that ld. CIT(E) dismissed the aforesaid application filed by the assessee without waiting for reply by the assessee to its notice dated 27.08.2025. Prayers were made to restore the application before ld. CIT(E) for denovo determination of the application for grant of registration u/s 12A on merits in accordance with law after providing opportunity of being heard to the assessee. It was also prayed that similarly application for approval u/s 80G was also rejected by ld. CIT(E) vide orders dated 16.09.2025. Prayers were made to restore both the matters to the file of ld. CIT(E).

We have considered rival contentions and perused the materials available on record, which are culled out in preceding para’s of this order and are not repeated again. The assessee has filed application with ld. CIT(E) for grant of registration u/s 12A, dated 12.02.2025 . The ld. CIT(E) issued notice along with questionnaire , dated 10.03.2025 to the assessee. The assessee filed reply. The ld. CIT(E) issued fresh notice dated 27.08.2025 asking for specific details, documents and clarifications from the assessee , but the assessee did not file any reply . The ld. CIT(E) dismissed the application for registration u/s 12A on the grounds that the earlier application filed by the assessee for registration u/s 12A for assessment year 2022-23 to 2024-25 has already been rejected and provisional certificate stood cancelled. The ld. CIT(E) dismissed aforesaid application for registration u/s 12A vide order dated 16.09.2025 . We have observed that proper and adequate opportunity of hearing was not provided to the assessee. Principle of natural justice are clearly breached. Both the parties before us are also ad-idem that the application for registration u/s 12A filed by the assessee before ld. CIT(E) can be restored back to the file of ld. CIT(E) for denovo determination on merits in accordance with law.Keeping in view facts and circumstances of the case and in the interest of justice and fairness to both parties, we are of the considered view that end of the justice will be met to send back the matter back to the file of the ld. CIT(E) for denovo determination of the application of the assessee , dated 12.02.2025 filed for seeking registration u/s 12A of the 1961 Act. We clarify that we have not commented on the merits of the issues in the appeal, and the ld. CIT(E) shall pass orders on merits in accordance with law, after affording opportunity of being heard to the assessee. The assessee is directed to co-operate in the set aside remand proceedings to be conducted by the ld. CIT(E), otherwise the ld.CIT(E) shall be free to pass orders in accordance with law on merits. All the contentions are kept open. The orders of the ld. CIT(E) , dated 16.09.2025 is set aside and the matter is restored back to the file of the ld. CIT(E) for denovo determination of the aforesaid application for registration u/s 12A on merits in accordance with law after giving opportunity of being heard to the assessee. Evidences/ contentions filed by the assessee before the ld. CIT(E) shall be admitted by the ld. CIT(E) and shall be decided on merits in accordance with law. The appeal of the assessee is allowed for statistical purposes. So far as contention of the assessee to set aside the order of ld. CIT(E) rejecting its application for approval u/s 80G is concerned, we have observed that the assessee has not filed separate appeal with respect thereto. On being asked, the ld. Counsel for the assessee submitted that the assessee was not aware that two separate appeals need to be filed as there are separate orders passed by ld. CIT(E) one with respect to rejection of its application for registration us/ 12 A and second rejection of its application for approval u/s 80G. The ld. Counsel for the assessee submitted that it is a bonafide mistake on the part of the assessee , and prayers were made to condone the delay . Thus, keeping in view the facts and circumstances enumerated before us, we are giving liberty to the assessee to file , if so advised , appeal before ITAT not later than 08^th June, 2026, against order dated 16.09.2025 passed by ld. CIT(E) rejecting assessee’s application for approval u/s 80G (DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1080759543(1)), and in that scenario, the Bench shall condone the delay in filing appeal by the assessee with the Tribunal. We order accordingly.

In the result, the appeal filed by the assessee is allowed for statistical purposes.