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Judgment
ORDER
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER : The instant appeal filed by the assessee is directed against the order dated 25.02.2026 passed by the ld. Commissioner of Income-tax (Exemptions)-Delhi [hereinafter referred to as the Ld. CIT(E)] for seeking registration of trust under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Assessee filed the following grounds of appeal as under:
1.“That on the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (Exemptions) has erred in rejecting the application filed by the appellant in Form 10AB under section 12A(1)(ac)(iii) of the Income-tax Act, 1961.
2.That the learned Commissioner of Income Tax (Exemptions) erred in passing the impugned order without granting adequate and effective opportunity of being heard to the appellant, thereby violating the principles of natural justice.
3.That the learned Commissioner of Income Tax (Exemptions) erred in rejecting the application solely on the ground of non-furnishing of certain details in response to notices without examining the charitable objects of the appellant and the genuineness of its activities.
4.That the learned Commissioner of Income Tax (Exemptions) erred in cancelling the earlier registration granted to the appellant bearing Unique Registration Number AAAAB0626LE20221 without establishing that the activities of the appellant are not genuine or are not being carried out in accordance with its objects.
5.That the learned Commissioner of Income Tax (Exemptions) failed to appreciate that the appellant is engaged in charitable activities and its objects are charitable in nature and therefore the conditions for grant of registration under section 12AB were duly satisfied.
6.That the impugned order passed by the learned Commissioner of Income Tax (Exemptions) is arbitrary, contrary to the provisions of law and liable to be set aside.
7.That the appellant craves leave to add, amend, alter or withdraw any of the grounds of appeal at or before the time of hearing.”
The brief facts of the case are that the assessee is a charitable institution established with the object of carrying out charitable and social activities for the benefit of the community. The assessee had earlier been granted registration under section 12AB of the Act. The assessee filed an application in Form No. 10AB on 29.07.2025 seeking registration under section 12A(1)(ac)(iii) of the Act before the Commissioner of Income Tax (Exemptions). The learned Commissioner of Income Tax (Exemptions) passed an order dated 25.02.2026 rejecting the application filed in Form 10AB and also cancelling the earlier registration granted to the assessee.
Aggrieved, assessee is now in appeal before us.
Before us, ld. Counsel for the assessee submitted that during the course of proceedings, the ld CIT(E) issued notices dated 16.10.2025 and 14.11.2025 seeking certain details and documents in support of the application. Due to circumstances beyond the control of the assessee, the required details could not be submitted within the time allowed and therefore, compliance to the notices could not be filed. Without properly appreciating the facts and circumstances of the case and without granting adequate opportunity of being heard, the ld CIT(E) passed an order dated 25.02.2026 rejecting the application filed in Form 10AB and also cancelling the earlier registration granted to the assessee. The counsel submitted that the rejection has been made merely on account of non-submission of certain details and not on the basis of any finding that the objects of the assessee are not charitable or that its activities are not genuine. The assessee therefore prayed for restoration of appeal for fresh examination after providing adequate opportunity to the assessee.
Per contra, ld. DR relied upon the order of the CIT(E).
Having heard the Learned Counsels appearing for the parties and having regard to the facts and circumstances of the matter, we are of the view, in the interest of natural justice, that since the assessee is willing to furnish all the necessary documents and details as may be required to demonstrate the genuineness of its activities and the charitable nature of its objects, the matter may be remitted back to the Ld CIT(E) for denovo adjudication. The ld CIT(E) is directed to accord three effective opportunities to the assessee to present evidences in support of application seeking registration or any other evidence which the assessee may choose to file at the time of hearing of the appeal. We also make it clear that in the event, the assessee does not cooperate with the Ld CIT(E), the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with law. We order accordingly.
In the result, appeal preferred by the assessee in ITA No.3399/Del/2026 is allowed for statistical purposes.