BKK Memorial Trust vs Commissioner of Income Tax (Exemption)

PER MADHUMITA ROY, JM:

The present appeal filed by the assessee is directed against the order dated 30.03.2026 passed by the CIT(E), Delhi whereby and whereunder in the absence of requisite submissions made by the applicant in support of the application in Form No.12AB(1) (b) (ii) of the Act the same has been rejected.

Heard the parties and perused the records. In-spite of details furnished before the Ld. CIT(E) those were not taken into consideration in its proper perspective by the Ld. CIT(E), and the application under Section 12A(ac)(ii) of the Act was rejected as submitted by the Ld. Senior Counsel Mr. Ved Jain. Under these facts and circumstances of the matter, he, thus, prayed for further opportunity to the Assessee to represent its case effectively before the Ld. CIT(E).

The assessee filed application in Form No. 10AB dated 25.09.2015 seeking registration under Section 12A of the Act along with the documents mainly the trust deed, the audited financial statements of the preceding three years. Certain information and documents were, thereafter, sought for by the Ld. CIT(E) by issuance of notice dated 20.02.2016 whereupon the assessee furnished the detailed reply dated 10.03.2026 annexing the copy of the agreement to sale/purchase agreement for Gurgaon property, the details of the land purchased on 29.11.2023 for establishing the new educational campus and the ledger account of little children on education society reflecting advancement of payment made, the copy of bank statement of the assessee, the copy of widow pension distributed. However, in spite of those details being furnished by the assessee before the authorities below, the case made out by the assessee for approval under Section 12A of the Act was not found fit and the said applications stood rejected. The Ld. CIT(E) has categorically mentioned that in view of lack of documentary evidence regarding loans and advances and in the absence of verifiable proof of charitable activities the application made by the society stood rejected.

Thus, it appears that the documents were though duly furnished by the assessee in response to the direction and/or request made by the Ld. CIT(E), the assessee was not granted a favourable order due to lack of document as per the Ld. CIT(E) and therefore, in order to prevent the miscarriage of justice we are disposing of this appeal by setting aside the issue to the file of the Ld. CIT(E) for consideration of the same afresh upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. The assessee’s appeal is, thus, allowed for statistical purposes.