GANDHI MANDELA FOUNDATION,BADARPUR,SOUTH DELHI V. CIT EXEMPTION, CIVIC CENTER

ITA 981/DEL/2025

AI Insights

The case involves the Gandhi Mandela Foundation appealing against the order of the Commissioner of Income Tax (Exemption), which cancelled their provisional registration under section 80G of the Income Tax Act, 1961. The foundation argued that they were engaged strictly in charitable activities and thus deserved the registration. The CIT (E) had cancelled the registration without providing a proper show cause notice or hearing, which the tribunal found to be against the principles of natural justice. The tribunal decided to remit the case back to the CIT (E) for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786595 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2024-2025
• Appeal Filed On: 20-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S. GUPT
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI BEFORE SH. SUDHIR KUMAR, JUDICIAL MEMBER AND SH. MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.981/Del/2025 Assessment Year: 2024-25 Gandhi Mandela Foundation U-16A, KH No.182, Village Phul Prahladpur, Near Choupal New Delhi-110044 PAN No.AADTG7188G Vs CIT(Exemption) (APPELLANT) (RESPONDENT) Appellants by None Respondent by Ms. Amisha S. Gupt, CIT DR Date of hearing: 04/11/2025 Date of Pronouncement: 19/11/2025 ORDER PER SUDHIR KUMAR, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax Appeal (Exemption), Delhi [hereinafter referred to as “Ld. CIT(E)”], vide order dated 31.12.2024 pertaining to A.Y. 2024-25. Printed from counselvise.com 2 2. The assessee has raised following grounds of appeal :- 1. That on the facts and circumstances of the case, the Ld. CIT(E) has erred in facts and in law cancelling the provisional registration under clause (iv) of sub-section (5) of section 80G of the Income Tax Act, 1961 vide its order dated 31.12.2024; 2. That on the facts and circumstances of the case, the CIT(E) has erred in facts and in law, in not considering that the assessee is strictly engaged in charitable activities and hence there was no reason for cancelling the provisional registration and not granting the regular registration u/s. 80G(5)(iii) of the Income Tax Act, 1961 in respect of such activities; 3. That the CIT(E) has erred in law in acting in a haste and hurried manner, rather than giving a proper show cause notice of hearing to the assessee to explain its case and justify its stand while cancelling the provisional registration and not granting the regular registration U/s. 80G(5)(iii) of the Income Tax Act, 1961. 3. The brief facts of the case are that ld. CIT (E) has rejected the application for exemption u/s 80G of the Income-tax Act, 1961 (for short ‘the Act’) without giving any opportunity of being heard to the assessee and is against the principles of natural justice. Accordingly, assessee prayed that this issue may be remitted back to the ld. CIT(E) with the prayer to give an opportunity of being heard to the assessee. Printed from counselvise.com 3 4. On the other hand, ld. DR for the Revenue objected to the submissions of the ld. counsel for the assessee and relied on the order of Ld. CIT (E). 5. We have heard ld. DR and gone through the material available on record.We observed that the assessee submitted the ld. CIT (E) rejected the application for exemption u/s 80G of the Act without giving any opportunity of being heard to the assessee. In our considered view and in the interest of justice, assessee should be given one more opportunity of being heard on merit. Therefore, we direct Ld. CIT (E) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. 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. We remit this issue also back to the file of ld. CIT (E) in the interest of justice. Accordingly, the appeal filed by the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 19.11.2025. Sd/- Sd/- (MANISH AGARWAL) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Neha, Sr. PS Date:-19.11.2025 Printed from counselvise.com "