The New Generation Trust vs CIT (Exemption)

PER VIMAL KUMAR, JM:

The appeals filed by the assessee against the orders dated 19.03.2026 under section 12A/(1)(ac)(ii) and 80G of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) of the Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as “the CIT(E)”].

Ld. Authorized Representative for appellant/assessee submitted that Ld. CIT(E) erred in rejecting the application u/s 12A(1)(ac)(ii) and 80G without properly appreciating the documents and submissions. Ld. CIT(E) erred in holding that trust deed does not contain an irrevocability clause, without appreciating that the Trust Deed clearly provides that ‘the property of the trust shall in no event revert to the settlor or any other person’ which implicitly establishes irrevocable nature of the trust. The matter may be restored to the file of ld. CIT(E).

Ld. Departmental Representative relied on impugned order.

In view of above material facts, Ld. CIT(E) vide impugned order, rejected applications u/s 12A/(1)(ac)(ii) and 80G of the Act for non-providing of specific irrevocability clause, and how assets will be transfer and resolution. The appellant claims that impugned order is passed without appreciating documents and submissions.

In the interest of substantial justice, impugned order is set aside and the matter is restored to the file of the Ld. CIT(E) for fresh decision in accordance with law after affording fair opportunity of being heard to the assessee. We also direct assessee to make proper submissions and appear before the Ld. CIT(E) on the date of hearing and cooperate with the tax authorities.

In the result, the appeals filed by the assessee are allowed for statistical purposes.