KATHIKA TRUST,DELHI V. CIT EXEMPTION, DELHI

ITA 5339/DEL/2024

AI Insights

The case involves M/s. Kathika Trust, which appealed against the rejection of their applications for registration under sections 80G(5)(iv) and 12AB(1)(b)(ii) of the Income Tax Act, 1961. The Trust, provisionally registered under Section 12A, filed applications in Form No.10AB which were initially rejected due to incomplete documentation. The Tribunal found that the CIT(E) had not adequately considered the documents submitted by the Trust and decided to restore the matter for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653106 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• 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: AMIT KUMAR JAIN
• Assessee Lawyers: PRATAP GUPTA
• Keywords: Set aside
• Section: 12A

Judgement Text

" INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No.5338/DEL/2024 ITA No.5339/DEL/2024 M/s. Kathika Trust, 1834 Gali Imli, Ram Bazar Sita Ram, Delhi- 1100 06 PAN No. AAFTK3143B Vs. CIT (Exemption) Delhi (Appellant) (Respondent) O R D E R PER VIMAL KUMAR, JUDICIAL MEMBER: The appeals filed by appellant/assessee are against separate orders dated 27.09.2024 of Learned Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as ‘Ld. CIT(E)’] rejecting applications in Form 10AB for grant of registration under sections 80G(5)(iv) and 12AB(1)(b)(ii) B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Brief facts of the case are that applicant-assessee is a trust registered on 14.06.2023 under The Indian Trust Act, 1882 with Assessee by: Shri Pratap Gupta, CA Department by: Shri Amit Kumar Jain, CIT DR Date of Hearing: 29.05.2025 Date of pronouncement: 18.06.2025 ITA Nos.5338 & 5339/Del/2024 2 Sub-Registrar-III, New Delhi. The Trust was provisionally registered under Section 12A of the Act on 26.07.2023 through CPC for assessment years from 2024-25 to 2026-27. The applicant electronically filed applications on 15.03.2024 and 29.04.2024 in Form No.10AB under Sections 80G(5)iv and 12A(1)(ac)(iii) of the Act for regularisation of its provisional registration. The applicant was issued a questionnaire on 16.04.2024 to furnish certain details and documents. The appellant made part compliance on 06.06.2024. Vide letter dated 05.09.2024, the appellant was requested to submit remaining documents but of no use. Ld. CIT(E) through orders dated 27.09.2024 rejected the applications. 3. Being aggrieved, appellant/applicant preferred present appeals. 4. The Learned Authorised Representative for the appellant/assessee submitted that Ld. CIT(E) erred in rejecting applications without considering the relevant documents and material filed by the assessee. In this regard, he brought to our notice pages 30-37 of the paper book wherein the assessee has submitted various documents including financial statements. ITA Nos.5338 & 5339/Del/2024 3 Learned Authorised Representative requested for restoration of the matter to the file of the Ld. CIT(E). 5. Learned Authorized Representative for the Department had no objection. 6. From examination of record in light of aforesaid rival contentions, it is crystal clear that learned CIT(E) vide orders dated 27.09.2024 rejected applications in Form No. 10AB for non-filing of complete particulars regarding genuineness for sending the matter back to Ld. CIT(E). Learned Authorised Representative has prayed for restoration of matter to Ld. CIT(E). In view of above material facts, we observe that the assessee has submitted relevant information and relevant facts are brought on record by the Ld. AR by placing on record at pages 30-37 of the paper book. In the interest of substantial justice, impugned orders dated 27.09.2024 of Learned CIT(E) are set aside. The matter is restored to the files of the Learned CIT(E) for fresh decision in accordance with law after affording fair opportunity of hearing and filing of documents to applicant. 7. In the result, both the appeals of the appellant/assessee are allowed for statistical purposes. ITA Nos.5338 & 5339/Del/2024 4 Order pronounced in the open court on 18/06/2025. Sd/- Sd/- (S RIFAUR RAHMAN) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18/06/2025 Mohan Lal Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "