KRISHAN MOHAN AND SHAKUNTLA DEVI FOUNDATION, DELHI,DELHI V. THE CIT(EXEMPTION) DELHI, DELHI

ITA 1445/DEL/2025

AI Insights

The case involves an appeal by Krishan Mohan and Shakuntala Devi against the order of the ld. CIT(E), New Delhi, which rejected their application for grant of registration under section 12A(1)(ac)(iii) of the Income-tax Act, 1961 for the assessment year 2021-22. The rejection was based on the assessee's failure to provide necessary details, information, and documents to verify the genuineness of the activities of their foundation. The assessee argued that they were prevented by sufficient/reasonable cause from attending the proceedings before the ld. CIT(E). The Department Representative supported the decision of the authorities below. The Tribunal found that the CIT(E) had decided the issue without proper appreciation of facts and acknowledged the assessee's reasonable cause for non-participation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315816 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2021-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: SUDHIR SAHGAL
• Keywords: Opportunity of being heard; Reasonable cause

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘F’ BENCH, NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 1445/DEL/2025 [A.Y 2021-22] Krishan Mohan and Shakuntala Devi Vs. The C.I.T(E) Foundation, A-1/88, Delhi Safdarjung Enclave, South West Delhi PAN: AAETK 4417 F (Appellant) (Respondent) Assessee By : Shri Sudhir Sahgal, CA Department By : Shri Manish Gupta, Sr. DR Date of Hearing : 16.05.2025 Date of Pronouncement : 16.05.2025 ORDER PER NAVEEN CHANDRA, AM :- This appeal by the assessee is directed against the order of the ld. CIT(E), New Delhi dated 29.03.2024 for A.Y 2021-22. 2 ITA No. 1445 /DEL/2025 Krishan Mohan & Shakuntala Foundation [A.Y 2024-25] 2. At the very outset, the ld. counsel for the assessee submitted that the ld. CIT(A) has rejected the application for grant of registration u/s 12A(1)ac(iii) of the Income-tax Act, 1961 [the Act, for short] as the assessee failed to file details, information and documents required by the notices to verify the genuineness of the activities of the foundation. It is the say of the ld. counsel for the assessee that the assessee was prevented by sufficient/reasonable cause for not attending the proceedings before the ld. CIT(E). 3. Per contra, the ld. DR relied upon the orders of the authorities below. 4. We have heard the rival submissions and have perused the relevant material on record. We find that the ld. CIT(E) has decided the issue without appreciation of facts. We are of the considered view that the assessee has reasonable cause for not participating before the ld. CIT(E). 5. In view of the above facts and circumstances and in the interest of justice and fair play, we are of the considered view that the matter be restored back to the file of the ld. CIT(E) to decide the issues afresh after allowing adequate opportunity of being heard to the assessee. 3 ITA No. 1445 /DEL/2025 Krishan Mohan & Shakuntala Foundation [A.Y 2024-25] 6. The ld. CIT(E) is directed to decide the issues afresh after affording reasonable and adequate opportunity of being heard to the assessee. The assessee is also directed to provide necessary information /documents as required by the authorities. 7. In the result, appeal of assessee in ITA No. 1445/DEL/2025 is allowed for statistical purposes. Order pronounced in open court on 16.05.2025. Sd/- Sd/- [MAHAVIR SINGH] [NAVEEN CHANDRA] VICE PRESIDENT ACCOUNTANT MEMBER , Dated : 16th MAY, 2025. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi 4 ITA No. 1445 /DEL/2025 Krishan Mohan & Shakuntala Foundation [A.Y 2024-25] Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 3. Date on which the typed draft Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S./P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S./P.S. on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. The date on which the file goes for xerox 12. The date on which the file goes for endorsement 13. The date on which the file goes to the Superintendent for checking 14. The date on which the file goes to the Assistant Registrar for signature on the Tribunal order 15. Date on which the file goes to the dispatch section 16. Date of Dispatch of the Order "