M/s Impacting Lives Foundation vs CIT(Exemption), Delhi

PER MAHAVIR SINGH, VP

These two appeals by the assessee are arising out of the order of learned CIT(Exemption), Delhi rejecting the assessee’s application for registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) vide order dated 16^th September, 2025 passed under Section 12AB(1)(b)(ii)(B) of the Act and under Section 80G(5)(iii) of the Act vide order dated 16^th September, 2025 without providing reasonable opportunity of being heard to the assessee and also violating principles of natural justice.

At the time of hearing before us, nobody appeared on behalf of the assessee. We have heard the submissions of the learned CIT-DR and gone through the facts and circumstances of the case. We noted that the assessee is a non-profit company incorporated on 14^th August, 2020 and filed an application on 31^st March, 2025 in Form No.10AB seeking registration under Section 12A(1)(ac)(iii) of the Act. The assessee was already granted provisional registration vide order dated 29^th January, 2024 having unique registration No.AAFCI7480LE20231 for the period from assessment year 2024-25 to assessment year 2026-27. The CIT(Exemption) issued questionnaire on 21^st April, 2025 to furnish certain details and documents on or before 6^th May, 2025. Assessee filed submissions on 21^st May, 2025 and 17^th May, 2025 and CIT(Exemption), after examination of the same, issued letter dated 21^st August, 2025 requesting for specific details, documents and clarifications. The assessee was again provided final opportunity on 2^nd September, 2025 to file its submissions on or before 8^th September, 2025. But, assessee did not file any response. The CIT(Exemption), in the absence of any details like bills and vouchers, details of beneficiary, details of donation, bank statement to substantiate its claim of charitable activities, denied the registration and also cancelled the provisional registration granted vide order dated 29^th January, 2024. Consequently, registration under Section 80G was also denied.

We noted that the assessee was provided final opportunity on 2^nd September, 2025 and CIT(Exemption) passed order on 16^th September, 2025. According to us, the CIT(Exemption) has provided only one opportunity and decided the grant of registration rejecting the application of the assessee. In our view, this is violation of principles of natural justice as no reasonable opportunity of being heard was provided to the assessee. Accordingly, we set aside the order of learned CIT(Exemption) and restore the matter to his file for allowing reasonable opportunity of being heard to the assessee.

In the result, both the appeals of the assessee are allowed for statistical purposes.