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Judgment
PER NAVEEN CHANDRA [ACCOUNTANT MEMBER]:
The above captioned appeals are preferred by the assessee are directed against the order dated 16.01.2026 and 14.01.2026 passed by the ld. Commissioner of Income-tax (Exemptions)-Chandigarh [hereinafter referred to as the Ld. CIT(E)] for seeking registration of trust under Section 80G(5)(ii) and 12AB(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Since the above captioned appeals were heard together and the facts in issues are identical, both the appeals are being disposed of by this common order for the sake of convenience and brevity.
The grounds of appeal raised by the assessee in ITA No.3401/Del/2026 are as under:
“1.The Ld. Commissioner of Income Tax (Exemptions) Chandigarh has erred both in law and in Fact in rejecting the application of appellant in Form 10AB seeking approval under Section 80G(5) of the Income Tax Act 1961 on erroneous grounds that activities of the Society are religious in nature which cannot be considered as Charitable purposes and that main condition of Section 80G(5) were contravened. The order so passed is against facts and sanction of law.
2.The Ld. Commissioner of Income Tax (Exemptions) has erred in rejecting the application in Form No. 10AB seeking approval u/s 80G(5) of the Income Tax Act with the observation that rejection and consequent lack of approval shall supersede/cancel any approval granted u/s 80G of the Act by any authority at any earlier time.
3.The Ld. Commissioner of Income Tax (Exemptions) has erred in not providing fair opportunity of being heard to the appellant regarding rejection of application for approval u/s 80G(5) of the Income Tax Act.
4.The Ld. C.I.T. (Exemptions) has further erred in law and facts in not appreciating that the objects of the appellant society were charitable and not religious and society is not for the benefit of any particular religious community or caste and hence was registered and approved on the basis of such objects as per Registration u/s 12AB of the Income Tax Act.
5.The Ld. C.I.T. (Exemptions) has erred in law and on facts in not considering the entire Memorandum of Association of the Society and the objects, the society being not for benefit for any particular religious community or caste and objects were charitable only it be to held now and order passed be set aside by directing to grant approval as sought u/s 80G(5) of the Act.
6.The Ld. C.I.T. (Exemptions) also erred in law and on facts in relying on the decision which is not applicable and not relevant to the facts of the appellant's case and the prevailing position of law as applicable for the year under appeal.
7.The order passed by Ld. C.I.T. (Exemptions) being erroneous and against the provisions of law, deserves to be cancelled. It be cancelled now and approval under Section 80G(5) of the IT Act be directed to be granted as claimed.
8.The appellant craves leave to add, alter, modify or delete any of the ground at the time of hearing.”
The grounds of appeal raised by the assessee in ITA No.3516/Del/2026 are as under:
1.“The Ld. Commissioner of Income Tax (Exemptions), Chandigarh has erred in law & Fact in granting registration u/s 12AB(1)(b) of the Income Tax Act in mentioning that the assessee Society as 'Religious Entity'. The order so passed is against facts and sanction of law.
2.The Ld. Commissioner of Income Tax (Exemptions) has erred in law and facts in not appreciating that the objects of the appellant Society were Charitable and not religious and Society is not for the benefit of any particular religious community or caste.
3.The appellant craves leave to add, alter, modify or delete any of the ground at the time of hearing.”
Brief facts of the case are that the assessee is engaged in religious activity. An application for approval under section 80G(5)(ii) of the Act was filed by the assessee on 30.09.2025 in Form 10AB, which was rejected by the ld. CIT(E) as assessee was clearly engaged in religious activities which cannot be considered to be for charitable purposes as per the provisions of section 80G(5) of the Act.
Aggrieved, assessee is now in appeal before us.
Before us, ld. Counsel for the assessee submitted that during the course of proceedings, the ld. CIT(E) rejected the application of the assessee in Form 10AB seeking approval under section 80G(5) of the Act on erroneous grounds that activities of the activities of the Society are religious in nature which cannot be considered as Charitable purposes and that main condition of Section 80G(5) were contravened.
Per contra, ld. DR relied upon the order of the CIT(E).
Having heard the Learned Counsels appearing for the parties and having regard to the facts and circumstances of the matter, we are of the view, in the interest of natural justice, that since the assessee is willing to furnish all the necessary documents and details as may be required to demonstrate the genuineness of its activities and the charitable nature of its objects, the matter may be remitted back to the Ld CIT(E) for denovo adjudication. The ld CIT(E) is directed to accord three effective opportunities to the assessee to present evidences in support of application seeking registration or any other evidence which the assessee may choose to file at the time of hearing of the appeal. We also make it clear that in the event, the assessee does not cooperate with the Ld CIT(E), the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with law. We order accordingly.
In the result, both the appeals preferred by the assessee in ITA Nos.3401 and 3516/Del/2026 is allowed for statistical purposes.