AHLEBAIT CULTURAL SOCIETY ,GURGAON V. CIT(EXEMPTION), HARYANA

ITA 3001/DEL/2025

AI Insights

The case involves the Ahlebait Cultural Society appealing against the orders of the Commissioner of Income Tax (Exemption), Chandigarh, which rejected their applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G of the Income Tax Act, 1961. The primary contention was the sufficiency of documents provided to assess the genuineness of the Society's activities and compliance with its Memorandum of Association (MOA). The Tribunal noted that the Society had indeed commenced charitable activities in the Financial Year 2021-22, contrary to the CIT(E)'s findings, and thus directed the grant of registration and approval sought.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784596 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 05-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SINDHU
• Section: 12A; 80G

Judgement Text

"1 ITA Nos. 3001 & 3002/Del/2025 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER ITA No.3002/DEL/2025 U/s 12A ITA No.3001/DEL/2025 U/s 80G Assessment Yr: NA Ahlebait Cultural Society, C-44, Old DLF, Sector 14, Gurgaon, Haryana PIN: 122 001 PAN No. AAIAA 9461G Vs. CIT (Exemption), Chandigargh (Appellant) (Respondent) O R D E R PER MADHUMITA ROY, JUDICIAL MEMBER: Both the appeals filed by the assessee are directed against the orders passed by the Learned Commissioner of Income Tax (Exemption), Chandigarh, rejecting application in Form 10AB for grant of registration under section 12A(1)(ac)(iii)B and 80G(5) of the Income Tax Act, 1961 respectively. 2. Heard the parties and perused the relevant materials available on record. The brief facts of the case are that an application for registration under Section 12A (1)(ac)(iii) of the Act was filed by the assessee-trust on 30.09.2024. The said application stood rejected. The Ld. CIT(E) is of the opinion that the sufficient documents have not been filed by the assessee for Assessee by: N o n e Department by: Shri Dayainder Singh Sindhu, CIT (DR) Date of Hearing: 11.11.2025 Date of pronouncement: 14.11.2025 Printed from counselvise.com 2 ITA Nos. 3001 & 3002/Del/2025 2 assessing the genuineness of the activities of the Society. Neither, it could be verified from the available documents as to whether the applicant complied with the objects mentioned in the MOA or not. However, perusal of the income and expenditure account for year 31.03.2022 as submitted by the applicant, the Ld. CIT(E) is of the opinion that the Trust has been engaged in carrying out charitable activities during the Financial Year 2021-22 and thus, the commencement of the activities can be considered during the Financial Year 2021-22. 3. The provisional registration was granted by Ld. CIT(E) on 05.02.2024. It was further observed by the Ld. PCIT that as per the Act, post 01.10.2023, provisional registration cannot be granted/sought by a Trust or Institution which has not yet commenced its activities. It was, therefore, evident that the provisional registration have been granted as sought by the applicant as the applicant had already commenced its activities during Financial Year 2021-22. However, he ultimately rejected the application filed by the assessee filed in Form 10AB under Section 12A(1)(ac)(iii) of the Act. 4. Upon perusal of the matter passed by the Ld. CIT(E), it appears that once the Ld. CIT(E) was of the firm belief and concluded with the findings that the assessee had already commenced its charitable activities during Financial Year 2021- 22, rejection of the application made by the assessee under Section 12A(1)(ac)(iii) of the Act dated 30.09.2024 as considered to be not sought sustainable in the eyes of law. Printed from counselvise.com 3 ITA Nos. 3001 & 3002/Del/2025 3 5. In that view of the matter, we dispose of this appeal by directing the Ld. CIT(E)with a direction upon him to grant registration to the assessee in terms of the application made under Section 12A(1)(ac)(iii) of the Act dated 30.09.2024. Consequently, the application for approval under Section 80G of the Act to be allowed by the Ld. CIT(E) with the aforesaid observations. Hence, both the appeals filed by the assessee are allowed. 6. In the result, both the appeals of the appellant/assessee are allowed. Order pronounced in the open court on 14 /11/2025. Sd/- Sd/- (M BALAGANESH) (MS. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 14/11/2025 Mohan Lal Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "