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Judgment
PER RENU JAUHRI :
The above captioned appeals i.e., ITA No. 3622/Del/2025 & ITA No. 3623/Del/2025 are preferred by the assessee against the order dated 03.03.2025, passed by Commissioner Income Tax (Exemption), Delhi [for short, Ld. CIT(E)] u/s 80G & 12AB(1)(b)(ii)(B), respectively, of the Income Tax Act, 1961 (hereinafter referred to as, “Act”).
In ITA No. 3622/Del/2025, the assessee has raised following grounds of appeal:
“ Ground 1. On facts AMD circumstances of the case, the order passed by the Ld. CIT (Exemption) u/s 12AB(1)(b)(ii)(B), rejecting the application for registration is bad in law AMD needs to be annulled.
Ground 2 The Ld.CIT (E) erred in treating the assessee non charitable merely on account of non-commencement of Charitable Activities.
Ground 3 The Ld. CIT(E) erred in law as well as on facts in cancelling the provisional registration of the assessee obtained u/s 12(1)(ac)(vi) on 22.06.2022 vide URN AAFCJ3138AE20221 for the period from A.Y. 2023-24 to Α.Υ. 2025-26.
Ground 4 The order passed by the Ld. CIT (E) is against the principle of natural justice.
Ground 5 The assessee reserves the right to add, amend AMD DLEETE any of the above grounds of Appeal.”
In ITA No. 3623/Del/2025, the assessee has raised following grounds of appeal:
“ Ground No. 1 On facts and Circumstances of the case, the order passed by Ld. CIT(Exemption) under Clause (ii)(b)(B) of second proviso to section 80G(5) of the Income Tax Act, 1961, rejecting the application for registration is bad in law and needs to be annulled.
Ground No. 2. The Ld. CIT(E) erred in treating the assessee non charitable merely on account of non-commencement of Charitable Activities.
Ground No. 3. The Ld. CIT(E) erred in law as well as on facts in cancelling the provisional registration of the assessee obtained under Clause (iv) of first proviso to sub-section (5) of section 80G on 01.07.2022 vide URN AAFCJ3138AF2022101 for the period from 01-07-2022 to AY 2025-26.
Ground No. 4 The order passed by the Ld. CIT(E) is against the principle of natural justice.
Ground No. 5 The assessee reserves the right to add, amend and Delete any of the above grounds of Appeal. ”
As common facts and circumstances are involved in both the appeals, these are being disposed off vide a common order and, ITA No. 3622/Del/2025 is taken as the lead case.
Brief facts are that the assessee is a non-profit organization registered under section 8 of the Companies Act, 2013. It was incorporated on 03.09.2021 and was provisionally registered u/s 12(1)(ac)(vi) for the period A.Y. 2023-24 to A.Y. 2025-26. Assessee filed application for regular registration in Form 10AB on 27.08.2024. The application was rejected vide order dated 03.03.2025 on the ground that the activities of the applicant had not commenced.
Before us, Ld. AR has submitted that the Ld. CIT(E) did not consider the reply dated 11.11.2024 wherein requisite explanation was given, intimating that activities were due to commence shortly. Moreover, Ld. CIT(E) wrongly cancelled even the provisional registration for the period A.Y. 2023-24 to A.Y. 2025-26 while rejecting the application. It has also been submitted that the activities have already commenced and assessee is in a position to submit requisite details before the Ld. CIT(E). Accordingly, Ld. AR has requested that the matter may be remanded to Ld. CIT(E) for fresh consideration.
We have heard the rival submissions and perused the material on record. In the interest of justice, we deem it appropriate to restore the matter to Ld. CIT(E) for fresh consideration and decision on merits after giving due opportunity to the assessee.
As approval u/s 80G has also been rejected on the same facts and circumstances, the above order shall apply mutatis mutandis to ITA No. 3623/Del/2025 also.
In the result, both the appeals are allowed for statistical purposes.