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Judgment
PERSHRI ANUBHAV SHARMA, JUDICIAL MEMBER:
This appeal is preferred by the assessee against the order dated 18.03.2026 of Ld. Pr. Commissioner of Income Tax (Central)-1, Delhi (hereinafter referred to as the First Appellate Authority or 'the Prescribed Authority' for short) in DIN & Notice No: ITBA/EXM/F/EXM45/2025-26/1087557751(1) against the rejection of renewal of registration u/s 12A(1)(ac)(ii) of the Act, 1961.
On hearing both sides and after appreciating the material on record we find that assesse’s application in Form 10AB has been rejected by the impugned order wherein ld. Prescribed authority has mentioned the issue which were into consideration about diversion of funds resulting into specified violation. Resultantly, registration of the trust was rejected and also cancelled for the Previous Year 2021-22 and for subsequent previous years.
However, we find that notice dated 28.02.2026 was shown to be issued to the assesse calling explanation of the issue but assesse had not responded and no submissions were filed. Thereupon ld. Prescribed authority has approached the issue on the basis of financial accounts. Ld. Counsel has submitted that assesse was not served any notice. Considering the assertion of ld. Counsel as the impugned order is silent about the manner of services of the notices. We consider it appropriate case to give assesse an opportunity to contest on merits. Accordingly, the appeal is allowed for statistical purposes and the issue on merits are restored to the files of ld. CIT(E) to give fresh notice of hearing to the assesse and decide the application afresh.