AI Structured Summary
Not yet generated for this judgment
Judgment
PER SHRI S. RIFAUR RAHMAN :
The assessee has filed these appeals against the order of the Learned Commissioner of Income Tax (Exemption), Delhi [“Ld. CIT(E)”, for short] dated 18.02.2026 for the u/s 12AB and 80G of the Income Tax Act, 1961 (the “Act” for short).
Heard both the parties and perused the material on record. We observed that the ld. CIT(E) rejected the application for registration u/s 12AB of the Income-tax Act, 1961 (for short ‘the Act’) without giving any opportunity of being heard to the assessee.
The ld AR submitted a written submission wherein, he submitted that the ld CIT(E) rejected the registration application filed by the assessee on the basis of some unsecured loans has been accepted and some advance has been given for the furtherance of the objects of the assessee. Further, the ld AR relied upon the decision of the coordinate bench of Chandigarh Tribunal in the case of Pistan Devi Education Society Vs. CIT(E) in ITA No. 6250/Del/2026 wherein, the coordinate bench has held that if some funds of the assessee has been misutlised then the ld AO can deny the exemption available to the society but this cannot be a ground for rejection of registration. Hence, in our considered view and in the interest of justice, assessee should be given one more opportunity of being heard on merit. Therefore, we direct ld. CIT(E) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. We also direct assessee to make proper submissions and appear before the ld. CIT(E) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.
Similarly, the registration u/s 80G was also rejected on the same ground. The assessee is in appeal before us by filing separate appeal vide ITA No 3755/Del/2026. We remit this issue also back to the file of ld. CIT(E) in the interest of justice. Both the issues under consideration may be decided as per law.
In the result, the appeals filed by the assessee are allowed for statistical purposes.