BHARTIYA NADI PARISHAD,UTTAR PRADESH V. CIT(EXEMPTION), DELHI

ITA 5446/DEL/2024

AI Insights

The case involves Bhartiya Nadi Parishad, an organization seeking registration under section 12AB of the Income Tax Act, which was denied by the CIT (Exemptions), Lucknow. The denial was based on the grounds that the assessee did not furnish evidence of incurring expenses or receiving donations for charitable activities. The assessee argued that they had commenced charitable activities, specifically a river cleaning project in collaboration with the German Development Corporation, but failed to present this evidence during the initial proceedings. The Tribunal decided to remand the case back to the CIT (Exemptions) for a detailed examination of the newly presented evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712004 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: RUCHESH SINHA; MONALISA MAITY
• Keywords: Opportunity of being heard

Judgement Text

"ITA No.5446/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI M BALAGANESH, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.5446/Del/2024 िनधा रणवष /Assessment Year:- BHARTIYA NADI PARISHAD Poothi Mawana, Meerut, Uttar Pradesh. PAN No.AAFTB2405H बनाम Vs. CIT (EXEMPTIONS), Lucknow. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by Shri Ruchesh Sinha, Adv. & Ms. Monalisa Maity, Adv. Revenue by Shri Ajay Kumar Arora, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 03.06.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 23.07.2025 आदेश /O R D E R PER C.N. PRASAD, J.M. This appeal is filed by the Assessee against the order of the Ld. CIT(Exemptions), Lucknow dated 26.09.2024 passed u/s 12AB(1)(ii)(B) of the Act in denying registration u/s 12AB of the Act. 2. Ld. Counsel for the assessee, at the outset, submits that the Ld. CIT(E) denied registration on the ground that evidences for carrying out charitable activities were not furnished by the assessee. Printed from counselvise.com ITA No.5446/Del/2024 2 The Ld. Counsel for the assessee submits that the Ld. CIT(E) denied registration observing that the assessee did not incur any expenditure and also did not receive any donations, assessee has not furnished any evidence of incurring expenses for charitable activity. Ld. Counsel submits that the CIT(E) did not found the objects of the assessee as not charitable in nature. Referring to page 10 of the Paper Book which is the trust deed he submits that the assessee trust was newly formed and the assessee has entered into an agreement with German Development Corporation, for promoting a project called Water Security & Climate Adoption in Rural India (WA SCA 2.O). Ld. Counsel further referring to page 47 of the Paper Book submits that the purpose of the contract was for preparation of a knowledge kit for river regeneration using GO Informative & Hydro Logical Tools for promoting ECO restoration of river following catchment area treatment approach under WASCA-2.O project. Therefore, the Ld. Counsel for the assessee submits that since the assessee has started activity of river cleaning pursuant to the contract in accordance with its objectives, the Ld. CIT(E) is not justified in denying registration u/s 12AB of the Act. On a query from the Bench as to whether this agreement was furnished before the Ld. Printed from counselvise.com ITA No.5446/Del/2024 3 CIT(E) the Ld. Counsel submits that this was not brought to the notice of the CIT(E). 3. Heard rival contentions, perused the orders of the Ld. CIT(E). We observed that registration u/s 12AB was denied to the assessee Bhartiya Nadi Parishad on the ground that the assessee has neither received any receipts nor incurred any expenditure and the assessee could not prove that the activities of the assessee were for the charitable nature. Ld. CIT(E) also held that the assessee failed to file any documentary evidences with regard to incurring of expenses on charitable activities. It is the contention of the Ld. Counsel for the assessee that the assessee had started its charitable activities by taking up the river cleaning project in consultation with the German Development Corporation. As per the contract for consulting services entered by the assessee trust with German Development Corporation the purpose was specified and according to which the object was to prepare a knowledge kit for river regeneration using GO Informatics & Hydrological Tools and for promoting ECO restoration of river following catchment area treatment approach under WASCA 2.O. These activities though commenced by the assessee the assessee did not furnish these details before the Ld. CIT(E) to show that the assessee has already started charitable activities. In the Printed from counselvise.com ITA No.5446/Del/2024 4 circumstance, we are of the view that since the Ld.CIT(E) has not gone into these details we restore this issue to the file of the Ld. CIT(E) for reconsideration of the request for restoration u/s 12AB of the Act and the assessee is at liberty to file all necessary details before the Ld.CIT(E) and the Ld. CIT(E) shall dispose of the application for registration afresh in accordance with law after providing adequate opportunity of being heard to the assessee. 4. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 23.07.2025 Sd/- Sd/- (M BALAGANESH) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23.07.2025 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "