IIMCA CARE FUND,NEW DELHI V. SHRI PRAKASH PANDEY, CIT (EXEMPTION), , DELHI

ITA 5154/DEL/2024

AI Insights

The case involves appeals by IIMCAA Care Fund against the orders of the CIT (Exemption), Delhi, which cancelled the provisional registrations under sections 12AB and 80G of the Income Tax Act, 1961. The CIT(E) had rejected the applications for permanent registration citing non-compliance with the requested details/documents to verify the genuineness of the Trust's activities. The tribunal found that the CIT(E) had not adequately discussed the merits or the specifics of the questionnaire in the impugned orders and thus remitted the matters back for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38183 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: ANAND JHA
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA NOS. 5153 & 5154/Del/2024 A.YR. : ---- IIMCAA CARE FUND, A-415, LGF DEFENCE COLONY, DELHI SOUTH EAST DELHI NEW DELHI – 24 (PAN: AACTI0485R) VS. CIT (EXEMPTION) DELHI INCOME TAX OFFICE, CIVIC CENTRE, MINTO ROAD, NEW DELHI (APPELLANT) (RESPONDENT) Appellant by : Sh. Anand Jha, Adv. Respondent by : Sh. Dayainder Singh Sidhu, CIT(DR) Date of hearing : 25.02.2025 Date of pronouncement : 12.03.2025 ORDER PER SHAMIM YAHYA, AM : These appeals by the assessee are directed against the separate orders of the Ld. CIT Exemption, Delhi both dated 11.09.2024 passed u/s. 12AB(1)(b)(ii)(B) and u/s. 80G(5) of the Income Tax Act, 1961 (hereinafter referred as “Act”) respectively. 2. The grounds raised in ITA No. 5153/Del/2024 read as under:- 2 | P a g e 1. The CIT(E) erred in law and on facts in passing the impugned order u/s. 10AD cancelling the registration vide the impugned order dated 11.9.2024 and not granting permanent registration u/s. 12AB of the Act particularly (i) when the provisions registration granted to the Trust u/s. 12AB of the Act on 11.12.2023 was valid from AY 2024-25 to 2026-27 because the Trust was new, constitute duly on 12.4.2022; (ii) there is no allegation of any mis- representation of the activities as per the Trust Deed on record of the Revenue; and (iii) the charitable activities were yet to be commenced being initial stage where not only funds were being collected from the members being made and fund were being collected from members / donors to carry out the object of the Trust. 2. The first accounting year of the Trust ended on 31.3.2023 as per the balance sheet and bank statement filed on the web portal clearly indicated that the funds collection derive commenced in the subsequent year after 31.3.2023 and accounts for the year ended 31.3.2024 were to be submitted by the Trust till 30.9.2024. 3. The impugned order must be cancelled and the provisions registration granted to the assessee effective till AY 2026-27 3 | P a g e must be allowed to pass through its full life as per the section 12AB of the Act. 4. The CIT(E) instead of dismissing the application, summarily should have passed an order considering the said application for permanent registration granted earlier and which was effective. Thus, the impugned order clearly shows non application of mind and considering the facts on record. 5. The appellant craves the lave to add, substitute, modify, delete or amend all or any ground of appeal either before or at the time of hearing. 3. The grounds raised in ITA No. 5154/Del/2024 read as under:- 1. The appellant craves the leave to add, substitute, modify, delete or amend all or any ground of appeal either before or at the time of hearing. 2. The CIT(E) erred in law and on facts in passing the impugned order u/s. 10D cancelling the registration vide the impugned order dated 11.9.2024 and not granting permanent registration u/s. 80G of the Act particularly (i) when the provision registration granted to the Trust u/s. 80G of the Act on 11.12.2023 was valid from AY 2024-25 to 2026-27 because the Trust was new, constituted only on 12.4.2022; (ii) there is no allegation of any mis-representation of the 4 | P a g e activities as per the Trust deed on record of the Revenue; and (iii) the charitable activities were yet to be commenced being initial stage where not only funds were being collected from the members being made and funds were being collected from members /donors to carry out the objects of the Trust. 3. The first accounting year of the trust ended on 31.3.2023 as per the balance sheet and bank statement filed on the web portal clearly indicated that the funds collection drive commenced in the subsequent year after 31.3.2023 and accounts for the year ended 31.3.2024 were to be submitted by the trust till 30.9.2024. 4. The impugned order must be cancelled and the provisional registration granted to the assesse effective till AY 2026-27 must be allowed to pass through its full life as per the section 80G of the Act. 5. The CIT(E) instead of dismissing the application, summarily should have passed an order considering the said application for permanent registration filed as not maintainable as there already a provisional registration granted earlier and which was effective. Thus, the impugned order clearly shows non application of mind and considering the facts of the case. 5 | P a g e 4. The brief facts of the case are that assessee has filed an application in Form 10AB for seeking registration under section 12A(1)(ac)(vi)-B of the Income Tax Act, 1961. Ld. CIT(E) has issued questionnaire dated 10.04.2024 with a request to furnish certain details / documents / clarifications in support of its claim of registration under section 12A(1)(ac)(vi)-B of the Act. Similarly, applicant filed an application in Form 10AB for seeking approval u/s. 80G(5)(iv)-B of the Income Tax Act, 1961. The CIT(E) issued questionnaire dated 10.4.2024 with the request to furnish certain details / documents / clarifications in support of its claim of approval for seeking approval u/s. 80G(5)(iv)-B of the Act. After perusing both the applications and the records thereof, Ld. CIT(E) noted that the case for grant of registration was fixed for compliance and issued questionnaire seeking certain details, from the assessee, but the assessee failed to comply with the same, hence, the Ld. CIT(E) rejected the application for grant of registration u/s. 12A(1)(ac)(vi)-B of the Act. He further noted that since application in Form 10AB for registration u/s,. 12A(1)(ac)(vi)-B was rejected due to part submission of the details/ information to verify the genuineness of the activities, charitable objects and commencement of the activities charitable, hence, approval u/s. 80G(5)(iv)-B was also rejected. Against the aforesaid actions of the Ld. CIT(Exemption), Delhi assessee is in appeals before us. 5. We have heard both the parties and perused the records. We find that ld. CIT(E), Delhi has summarily rejected both the applications without discussing 6 | P a g e any of the merits as well as even without discussing the details of questionnaire which he wanted to be supplied by the assessee. Thus in this view of the matter, we are of the considered opinion that both the matters needs to be remitted back to the file of the Ld. CIT(E), Delhi. Ld. CIT(E), Delhi shall consider the issues raised in both the appeals, afresh, after giving adequate opportunity of being heard to the assessee and pass speaking orders, in accordance with law. We hold and direct accordingly. 6. In the result, both the Assessee’s appeals are allowed for statistical purposes. Order pronounced on 12/03/2025. Sd/- (SUDHIR KUMAR) Sd/- (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER SRBHATNAGAR Copy forwarded to:- 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "