Lotus Petal Charitable Foundation, Chandigarh vs CIT (Exemptions)

PER Yogesh Kumar U.S., J.M.:

Both the appeals are filed by the assessee against the separate orders of the ld. Commissioner of Income Tax (Exemption), Delhi [CIT(E), in short], both dated 06.03.2026 rejecting the approval/registration sought u/s 12A(1)(ac)(iii) and 80G(5) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) for Assessment Year 2026-27.

The assessee has filed two separate appeals against the separate orders passed by the Ld. CIT(E), both dated 06.03.2026 wherein the assessee has challenged the action of the Ld. CIT(E) for rejection of approval/registration u/s 12AB(1)(b)(ii)(b) and 80G(5)(iii)(b)(B) of the I.T. Act.

It is observed that the Ld. CIT(E) has denied the registration u/s 12AB(1)(ii)(b) as the assessee has failed to provide the details as sought for time to time and thus, the Ld. CIT(E) was the opinion that the assessee has failed to substantiate the genuineness of its activity.

Before us, the Ld. AR of the assessee submits that the assessee though was not able to file the details before the Ld. CIT(E), however, he requested that assessee may be granted one more opportunity to represent its case before the Ld. CIT(E) and to file the documentary evidences as required by Ld. CIT(E).

In reply, the Ld. CIT-DR supported the orders of Ld. CIT(E) and requested for the confirmation of the same.

We have heard the rival submissions and from the perusal of the order of Ld. CIT(E), it is seen that the Ld. CIT(E) on various occasions asked the assessee to file the details of bills and vouchers of the expenses, details of donations received, details of beneficiaries of charitable activities etc. in order to establish the genuineness of its activity being carried out for charitable purposes. However, the assessee has failed to file any such information before the Ld. CIT(E), thus, the CIT(E) has denied the registration u/s 12A(1)(ac)(iii) of the Act. Likewise, the registration seek u/s 80G(5) was also rejected for want of relevant details.

Under these facts and circumstances of the case and in the interest of natural justice, we set aside the order impugned and both the matters are restored to the file of Ld. CIT(E) for fresh adjudication on merits in accordance with law after providing reasonable opportunities to the assessee. The Assessee is also directed to file the necessary evidences before the Ld. CIT(E) in order to establish the genuineness of the activity of assessee society. With these directions, both the appeals of the assessee are allowed for statistical purposes.

In the result, both appeals of the assessee in ITA No.2500 & 2501/Del/2026 for Assessment Year 2026-27 are allowed for statistical purposes.