ASHISH LEGAL FOUNDATION,FARIDABAD V. CIT EXEMPTIONS, CHANDIGARH

ITA 1417/DEL/2025

AI Insights

The case involves Ashish Legal Foundation, a charitable organization, which appealed against the decision of the CIT(Exemption), Chandigarh, denying their applications for registration under sections 12AB and 80G of the Income Tax Act, 1961. The CIT(E) had previously rejected similar applications, leading to the current appeals. The Tribunal noted that the CIT(E) failed to adequately assess the genuineness of the Foundation's activities and the objectives of the trust, as required by law. The Tribunal emphasized that the rejection of the application should not be based solely on previous rejections but should consider the current status and activities of the organization.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774733 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2024-2025
• Appeal Filed On: 07-03-2025
• Other Referred Cases: Ananda Social and Educational Trust v. CIT (2020) 272 Taxman 7 (SC)
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: SHIVAM CHOUDHARY
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Corroborative evidences; Principle of natural justice; Charitable institution
• Section: 12A; 12; 80G

Judgement Text

" ITANo. 1417 & 1418/Del/2025 Ashish Legal Foundation v. CIT(Exemption ) Chandjgarh 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SH. SUDHIR KUMAR, JUDICIAL MEMBER AND SH. MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1418/DEL/2025 & ITA No. 1417/Del/2025 Assessment Year- 2024-25 Ashish Legal Foundation, 395, Sector 30 Faridabad Haryana 121003 PAN No.AAXCA7886N Vs. CIT (Exemption) Chandigarh (APPELLANT) (RESPONDENT) Appellant by Sh. Shivam Choudhary, AR Respondent by Sh. Dayainder Singh Sidhu, CIT DR Date of hearing: 21/08/2025 Date of Pronouncement: 10/09/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER: These appeals by the assessee are directed against the order of the Commissioner of Income Tax (Exemption), Chandigarh [hereinafter referred to as “CIT(E)”] vide order dated 05.11.2024. Printed from counselvise.com ITANo. 1417 & 1418/Del/2025 Ashish Legal Foundation v. CIT(Exemption ) Chandjgarh 2 2. The appeals are filed time barred by 35 days. The assessee has filed the applications for condonation of delay for 35 days. In the application the assessee has stated that due to illness he has not filed the appeal within prescribed time limit. The assessee has shown sufficient cause for not filing the appeal within time limit. Therefore, we allow the application for condonation of delay. Delay is condoned and appeal is admitted for adjudication. 3. The assessee has raised the common grounds in both appeals:- 1. The Learned CIT (Exemption) has grossly erred on facts and in the circumstances of the case and in law cancelling the registration under section 12AB without affording adequate opportunity to the appellant to present the case and without considering the submission and evidence provided which violated the principles of natural justice. 2. The Learned CIT(E) has erred in interpreting the provision of section 12AB and wrongly concluded that the appellant's activities were not genuine or not carried out in accordance with its objects. 3. The Learned CIT (E) fails to establish any violation of the definition of charitable purpose as per section 2(15) of the Act, and activities of appellant are genuine and in alignment with its objects. 4. The Learned CIT (E) has erred that section 12A of Income Tax Act 1961 does not explicitly prohibit the filling of a fresh application after addressing earlier deficiencies of after rejection of previous application. The denial of current application solely based on the rejection of the earlier application under same section is not sustainable. Printed from counselvise.com ITANo. 1417 & 1418/Del/2025 Ashish Legal Foundation v. CIT(Exemption ) Chandjgarh 3 5. The Learned CIT (E) not appreciating the circular and judicial pronouncement clarify that fresh application of registration can be filed when deficiencies in previous application are rectified, provided they adhere to the prescribed 6. The Learned CIT (E) error in law the appellant is bona fide charitable organization engaged in public welfare activities and fulfilled all the necessary condition for approval of application under section 12AB and 80G. 7. The Learned CIT (A) has failed to provide adequate reasons for rejecting application under section 12 AB which directly impacted the present application under section 12AB and 80G of Act activity 8. The Learned CIT(E) fails to appreciate that rejection order lacks 8 adequate reasoning and clarity. Thereby causing prejudice to the appellant. 9. The appellant craves leave to add, amend, alter, or vary from the above grounds of appeal at or before the time of hearing. 4. The brief facts of the case are that M/s. Aasish Legal Foundation was incorporated under Section 8 of the Companies Act, 2013 with the primary objection of engaging in charitable activities, including legal awareness, access to justice, education, and public interest legal support. The assessee applied for provisional registration u/s 12AB and section 80G of the Act on 17-10-2022 through Form 10A and was granted provisional registration for three years vide certificate dated 07- 11-2022. The assessee is a charitable trust duly registered provisionally under section 12AB of the income Tax Act, 1961 engaged in activities for charitable purposes as defined under Printed from counselvise.com ITANo. 1417 & 1418/Del/2025 Ashish Legal Foundation v. CIT(Exemption ) Chandjgarh 4 section 2 (15) of the Act. As per the rule 17A of the Income Tax rules, the company was required to apply for final registration within six months of commencing operations dated 31-10- 2022and same was rejected by the Ld. CIT(E), without any proper justification. The assesse again filed Form 10AB dated 06-09-2023 for final registration u/s 12A(1) (ac)(iii) and 80G(5)(iii) enclosing all supporting evidence but the Ld. CIT(E ) has denied registration observing as under: Denial of 12 AA/12AB registration: “ An application for registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 was filed by the applicant electronically in Form 10AB. On perusal of our records, it is seen that the application of the applicant under section 12A(1)(ac)(iii) has already been rejected in past on 23-02-2024. As the application of applicant has been rejected once, the applicant cannot apply for approval u/s 12A again. In view of the above, the present application of the applicant is cancelled being non-maintainable. Denial of 80G Registration: “ An application for approval u/s 80G (5) (iii) of the Income Tax Act,1961 was filed by the applicant electronically in Form 10AB. On perusal of our records, it is seen that the application of the applicant under section 80G (5) (iii) has already been rejected in past on 06- 03-2024 in absence of regular 12AB registration. AS the application of applicant has been rejected once, the applicant cannot apply for approval u/s 80G again. In view of the above, the present application of the applicant is cancelled being non-maintainable. 5. The ld. AR of the assessee submitted that assessee is doing the charitable activities and all funds received have been solely Printed from counselvise.com ITANo. 1417 & 1418/Del/2025 Ashish Legal Foundation v. CIT(Exemption ) Chandjgarh 5 used to advance its social objectives. The assessee has maintained the books of accounts which were duly audited by chartered accountant. He also submitted that the Ld. CIT( E) rejected the application without any specific clarification and verifying the genuineness. The application was rejected sole ground that same application has been already rejected ignoring that the applicant moved the fresh application. Reliance has placed on the following decisions; “In the case of Ananda Social and educational Trust v. CIT(2020) 272 Taxman 7(SC) the Hon’ble Supreme Court held that at the stage of registration, the commissioner is only to satisfy himself about the objects of the trust and genuineness of its activities not the actual performance or quantitative scale of activities.” 6. Ld. DR relied the order of the Ld. CIT (E ) and submitted that the application was rightly rejected because similar application has already been rejected by the authority. 7. We have heard the parties and gone through the material available on record. It reveals from the order of the Ld. CIT(E ) that the application was rejected on the basis that in past the same applications of the applicant already have been rejected. The Ld. CIT(E) should have examine the application of the assessee and should have reached the conclusion, whether the activities of the trust was charitable or not. The application cannot be rejected without assigning any reason, only this Printed from counselvise.com ITANo. 1417 & 1418/Del/2025 Ashish Legal Foundation v. CIT(Exemption ) Chandjgarh 6 ground that the same has already been rejected. The Ld. CIT(E ) is required to be satisfied about the objects of the trust and its activities are genuine. The Ld. CIT(E ) would be bound to record the findings that an activities carried on by the trust are not genuine. If there have been no activities under taken then the Ld. CIT(E ) cannot assess whether such activities are genuine or not. In this case the Ld. CIT(E), without giving any reason rejected the applications of the assessee. Therefore, we set aside the order passed by the Ld. CIT(E ) and matter restore to the file to the Ld. CIT(E) to decide the matter as fresh after giving the opportunity of being heard to the assessee. The appeals are allowed for statistical purpose. 8. In the result, both the appeals of the assessee are allowed for statistical purpose. Order pronounced in the open court on 10.09.2025. Sd/- Sd/- (MANISH AGARWAL) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) Neha, Sr. PS Date:10.09.2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI Printed from counselvise.com "