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Judgment
ORDER
PER RAMIT KOCHAR, AM:
This appeal in ITA No. 2598/Del/2026 has arisen from order passed in Form No. 10AD dated 03.03.2026 by learned Commissioner of Income Tax (Exemptions), Delhi [CIT(E), in short] u/s 12AB(1)(b)(ii)(B) , rejecting application for registration u/s 12A(1)(ac)(ii) of the Income-tax Act, 1961 (DIN & Notice No. ITBA/EXM/F/ EXM45/2025-26/1086787773(1)) filed by the assessee ,on 30th September, 2025.
The assessee filed an application in Form 10AB seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act , on 30.09.2025. The ld. CIT(E) issued notice dated 22nd December, 2025 as well further notice dated 16.02.2026 requiring assessee to file certain details/documents/clarifications , inter-alia, including (a) Copy of 12A & 80G Registration prior to 01.04.2021 (b) Audited Accounts of FY 2024-25 and (c) Absence of irrevocable clause in the deed of incorporation, in support of its request for registration u/s 12A(1)(ac)(ii) of the 1961 Act. The assessee did not comply with both the aforesaid notices . The ld. CIT(E) rejected the application filed by the assessee seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act. The ld. CIT(E) however gave liberty to the assessee to file its application again for registration u/s 12A(1)(ac)(ii) of the 1961 Act , as per provisions of the 1961 Act along with necessary justification.
Aggrieved, the assessee has filed first appeal with the Tribunal , and the ld. counsel for the assessee at the outset submitted that the assessee could not file the replies before the ld. CIT(E) due to technical glitches in uploading documents in the income tax-portal being faced by the assessee while filing and uploading the documents on the ITBA portal. Screen Shot of the portal is enclosed , which is placed on record in file(diary no. 1764 dated 15.07.2026 filed with Registry). The assessee has now filed a paper book containing 52 pages , and it was submitted that the assesse has now enclosed copy of old registration u/s 12A read with Section 12AA of the 1961 Act, dated 20th September, 2016 which is placed in paper book at page no. 11. The assessee has also filed a copy of provisional registration in Form No. 10AC seeking registration u/s 12A(1)(ac)(i) of the Act , dated 26th March, 2022 , for assessment year(s) 2022-23 to 2026-27 , which is placed in paper book at page no. 8 to 10. The assessee has also filed audited financial statement for the financial year(s) 2021-22, 2022-23 and 2023-24 , which are placed in paper book at page no. 12 to 22. The assessee has also filed a copy of trust deed dated 30th April, 2014 along with the supplementary deed of trust dated 16th Sept., 2016, which are placed in paper book at page no. 23 to 52. It was prayed that owing to technical glitches in the ITBA portal in uploading documents being faced by the assessee, the assessee could not upload the aforesaid documents , and hence could not pursue its application dated 30th September, 2025 , which led the ld. CIT(E) to reject the application filed by the assessee for registration u/s 12A(1)(ac)(ii) of the Act , vide order dated 03.03.2026. It was submitted that now all the documents are filed in paper book filed with the Tribunal with one copy handed over to ld. CIT-DR, prayers were made by ld. Counsel for the assessee that one more opportunity be granted to the assessee and the assessee will duly comply with the requirements of ld. CIT(E) and file necessary documents in compliance thereof.
The ld. CIT-DR on the other hand submitted that the assessee has not complied with the notices issued by the ld. CIT(E) , and it was submitted that the ld. CIT(E) has rightly rejected the application filed by the assessee for registration u/s 12A(1)(ac)(ii) of the Act. The ld. CIT-DR relied upon the order passed by the ld. CIT(E).
We have considered rival contentions and perused the materials on record. The brief facts and contentions of both the parties are reproduced by us in the preceding paras of this order, and are not repeated again. Keeping in view facts and circumstances of case as enumerated above and in the interest of justice, we are of the considered view that one more opportunity needs to be granted to the assessee. Thus we are of the considered view that the matter can be restored back to the file of the ld. CIT(E) for denovo determination of the application dated 30.09.2025 of the assessee seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act. We clarify that we have not commented on the merits of the issues with respect to the application filed by the assessee for seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act, and ld. CIT(E) will decide the application filed by the assessee for registration u/s 12A(1)(ac)(ii) of the 1961 Act uninfluenced by any of our observations in this order. Needless to say that the ld. CIT(E) will grant proper opportunity of being heard to the assessee , and shall pass speaking order on merits in accordance with law. All the evidences filed by the assessee in support of its contention shall be admitted by the ld. CIT(E) , and will be decided on the merits in accordance with law. In case, the assessee did not co-operate in the remand proceedings, the ld. CIT(E) shall be free to decide the application in accordance with law. The appeal of the assessee is allowed for statistical purposes. We order accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.