ARYA SMAJ,HISAR V. COMMISSIONER OF INCOME TAX (EXEMPTION), CHANDIGARH

ITA 2190/DEL/2024

AI Insights

The case involves Arya Samaj Hisar appealing against the decision of the CIT (Exemption), Chandigarh, which rejected their application for registration under section 12AA of the Income Tax Act, 1961. The CIT (Exemption) had found that the society was not engaging in activities aligned with its stated objectives, particularly noting that the running of a school was not mentioned in the society's aims and objectives. The Tribunal noted that the assessee had filed for an amendment in their memorandum and by-laws, which was still pending, and thus decided to remand the case back to the CIT (Exemption) for a decision based on the updated documents.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829013 (ITAT-NEW DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Delhi
• Assessment Year: misc
• Appeal Filed On: 04-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Assessee Lawyers: KULDEEP KHERA
• Keywords: Opportunity of being heard
• Section: 12AA; 12A

Judgement Text

"ITA No. 2190/DEL/2025 Arya Smaj Hisar 1 | P a g e IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT & MRS. RENU JAUHRI, HON’BLE ACCOUNTANT MEMBER ITA No. 2190/DEL/2024; Assessment Year: 2023-24 ARYA SMAJ Nagori Gate Hisar- 125001 Haryana Vs CIT (EXEMPTION) Chandigarh (APPELLANT) (RESPONDENT) PAN No. AAHAA4079M Assessee by : Shri Kuldeep Khera, CA Revenue by : Shri Jitender Singh, CIT DR Date of Hearing: 07.01.2026 Date of Pronouncement: 14.01.2026 ORDER PER RENU JAUHRI : The above captioned appeal is preferred by the assessee against the order dated 21.03.2024, passed by Ld. CIT(Exemption), Chandigarh [for short, Ld. CIT(E)] u/s 12AA of the Income Tax Act, 1961 (hereinafter referred to as, “Act”) in Application No. CIT EXEMPTIONS CHANDIGARH/2023-24/12AA/11183. 2. The assessee has raised grounds of Appeal which are reproduced as below: “ 1. That the Order of the Honorable CIT(E) is bad in law and against the facts placed on the file. Printed from counselvise.com ITA No. 2190/DEL/2025 Arya Smaj Hisar 2 | P a g e 2. That the Honorable CIT(E) erred on holding that the society is not doing any charitable activity although evidence of running both the schools and running of Arya samaj, Hisar were submitted and placed on the file. 3. That the Honorable CIT(E) erred in rejecting the application U/s 12AA of the Income Tax Act, 1961 on the ground that propagating the teachings of Swami Dayanand Saraswati is not a Charitable Activity. 4. That the Honorable CIT(E) erred in holding the society as uncharitable on the ground that the society is earning huge profit ignoring the fact that the society being law abiding, assessee has paid full tax on the profit earned during the AY 2021-22 & AY 2022-23. 5. The assessee craves to add, alter, amend any of the grounds before the appeal is heard or finally disposed off.” 3. Brief facts are that the assessee had filed application in Form 10AB on 26.09.2023, seeking registration under sub-clause (iii) of clause (ac) of sub- section(1) of section 12A of the Act before Ld. CIT(E). However, Ld. CIT(E) noted that that the assessee is running a school for last several years but none of the aims and objectives mentioned the running of school as an activity of the society. Accordingly, Ld. CIT(E) vide order dated 21.03.2024 rejected the application on the ground that the activities carried out by the applicant were not in accordance with its objects. Aggrieved, the assessee has preferred an appeal before the Tribunal. 4. Before us, Ld. AR has submitted that an application has been filed for the requisite amendment in the Memorandum and bye-laws before the Competent Printed from counselvise.com ITA No. 2190/DEL/2025 Arya Smaj Hisar 3 | P a g e Authority on 02.11.2025 which is still pending. A copy of the same has been placed before us. 5. After hearing both the parties, we deem it appropriate to restore the matter to Ld. CIT(E) for fresh consideration after taking into account the amended memorandum and by-laws and decide the application on merits. Needless to add, the assessee should be given a reasonable opportunity of being heard. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 14 -01-2026. Sd/- Sd/- (MAHAVIR SINGH) (RENU JAUHRI) Vice President Accountant Member Dated: 14.01.2026 Pooja Mittal Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi Printed from counselvise.com "