Dewan Harnam Das Saraswati Devi Trust vs CIT(Exemption), Income Tax Department

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 08.03.2026( DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1087007651(1)) rejecting application filed by the assessee for seeking registration u/s 12A(1)(c)(ii) of the Income Tax Act, 1961 (“the Act” in short).

Brief facts of the case are that assessee has filed an application dated 30.09.2025 in Form No.10AB for registration u/s 12A(1)(ac)(ii) of the 1961 Act, before learned CIT(E). The Ld. CIT(E) issued questionnaire dated 27.12.2025 to the assessee with the request to furnish certain details ,document and/or clarification in support of the claim of the registration u/s 12A(1)(ac)(ii) of the Act. The assessee did not file the documents/evidences etc required by the ld. CIT(E), and instead applied for adjournment. The ld. CIT(E) also observed that the assessee has not attached the documents/evidences etc. called for vide notice dated 27.12.2025 even with the application filed for registration, thus , genuineness of the activities, charitable objects and commencement of activities could not be verified by ld. CIT(E), and hence vide order dated 08.03.2026 passed in Form No. 10AD , the ld. CIT(E) rejected application of the assessee for seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act, on the grounds that the assessee has failed to submit the requisite details/evidences , in support of genuineness of the activities and charitable objects. The ld. CIT(E) gave liberty to the assessee to again apply for approval u/s 12A of the 1961 Act along with necessary justification.

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 ex-parte on the grounds that the assessee has not filed any documents/evidences etc. as called for by ld. CIT(E) to the solitary notice/questionnaire issued by ld. CIT(E), without deciding the appeal of the assessee on merits, and prayers were made to restore the application before ld. CIT(E) for denovo determination of the application for grant of registration u/s 12A(1)(ac)(ii) on merits in accordance with law after providing opportunity of being heard to the assessee. The ld. Counsel for the assessee made statement before the Bench that if the matter is restored to the file of ld. CIT(E), the assessee will file all the requisite details to support its application for registration u/s 12A(1)(ac)(ii) of the 1961 Act.

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(1)(ac)(ii), dated 30.09.2025 . The ld. CIT(E) issued notice along with questionnaire , dated 27.12.2025 to the assessee, but The assessee did not file any response/reply/documents/evidences to the said notice, and rather sought adjournment. No further opportunity was provided by ld. CIT(E) to the assessee. The ld. CIT(E) dismissed aforesaid application for registration u/s 12A(1)(ac)(ii) , vide order dated 08.03.2026 . Principles of natural justice are breached. The assessee has now filed an appeal with the Tribunal, and prayers are made to grant one more opportunity. Statement is made before the Bench, that if one more opportunity is provided, the assessee will duly comply with the directions of ld. CIT(E) , and file all necessary details to support its contentions. 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 30.09.2025 filed for seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act, on merits in accordance with law. 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 08.03.2026 is set aside and the matter is restored back to the file of the ld. CIT(E) for denovo determination of the aforesaid application 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. We order accordingly.

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