KSHATRIYA RAJPUT DOCTORS ORGANIZATION,DELHI V. CIT EXEMPTION, DELHI

ITA 2754/DEL/2024

AI Insights

The case involves the Kshatriya Rajput Doctors Organization, which appealed against the rejection of their applications for registration under Section 12A(1)(ac)(iii) and Section 80G(5) of the Income-tax Act, 1961. The applications were initially rejected by the CIT(Exemption) due to insufficient evidence and documentation to support the claim that the organization was engaged in charitable activities benefiting the general public. The tribunal found that the principles of natural justice were not adequately followed in the initial proceedings and thus remanded the case for a fresh evaluation, allowing the organization to present additional evidence.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31786 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-12-2024
• Assessment Year: misc
• Appeal Filed On: 29-05-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: DUSHYANT MAHARISHI
• Keywords: Set aside
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH- - - -C C C C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE BEFORE BEFORE BEFORE SHRI MAHAVIR SINGH SHRI MAHAVIR SINGH SHRI MAHAVIR SINGH SHRI MAHAVIR SINGH, , , , VICE VICE VICE VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SHRI NAVEEN CHANDRA SHRI NAVEEN CHANDRA SHRI NAVEEN CHANDRA SHRI NAVEEN CHANDRA, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA No ITA No ITA No ITA No.2754 .2754 .2754 .2754/Del/2 /Del/2 /Del/2 /Del/20 0 0 02 2 2 24 4 4 4 & 2755/Del/2024 & 2755/Del/2024 & 2755/Del/2024 & 2755/Del/2024 Assessment Y Assessment Y Assessment Y Assessment Year : ear : ear : ear : N.A. N.A. N.A. N.A. Kshatriya Rajput Doctors Kshatriya Rajput Doctors Kshatriya Rajput Doctors Kshatriya Rajput Doctors Organization, Organization, Organization, Organization, Ho Ho Ho House No.49, Ground Floor, use No.49, Ground Floor, use No.49, Ground Floor, use No.49, Ground Floor, Block Block Block Block- - - -A, Pkt A, Pkt A, Pkt A, Pkt- - - -4, Sector 4, Sector 4, Sector 4, Sector- - - -8, 8, 8, 8, Rohini, Rohini, Rohini, Rohini, New Delhi New Delhi New Delhi New Delhi – – – – 110 085. 110 085. 110 085. 110 085. PAN : AAJCK0556H. PAN : AAJCK0556H. PAN : AAJCK0556H. PAN : AAJCK0556H. Vs. Vs. Vs. Vs. Commissioner of Income Commissioner of Income Commissioner of Income Commissioner of Income- - - -tax tax tax tax (Exemption), Delhi. (Exemption), Delhi. (Exemption), Delhi. (Exemption), Delhi. (Appellant) (Respondent) Appellant by : Shri Dushyant Maharishi, CA. Respondent by : Shri Dayainder Singh Sidhu, CIT-DR. Date of hearing : 03 03 03 03.1 .1 .1 .12 2 2 2.2024 .2024 .2024 .2024 Date of pronouncement : 03.12. 03.12. 03.12. 03.12.2024 2024 2024 2024 ORDER ORDER ORDER ORDER Per Bench Per Bench Per Bench Per Bench : : : : These two appeals by the assessee are arising out of different orders of learned CIT(Exemption), Delhi in application Nos.CIT(Exemption),Delhi/2023-24/12AA/11932 dated 20th March, 2024. 2. The only common issue in these two appeals of the assessee is as regards the order of learned CIT(Exemption) is against rejection of application under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) filed in Form No.10AB on 26th September, 2023 and under Section 80G(5) clause (iii) of first proviso in Form No.10AB dated 26th September, 2023. For these two appeals, assessee has raised various grounds, in each of appeal, which are argumentative, factual and need not be reproduced. ITA No.2754 & 2755/Del/2024 2 3. We have heard rival contentions and gone through the facts and circumstances of the case. We noted that the assessee filed an application electronically on 26th September, 2023 in Form No.10AB seeking registration under Section 12A(1)(ac)(iii) of the Act with the learned CIT(Exemption) submitted various letters for submission of details like financial statements, bank statements, form 10AB, address of the trustees, etc. as assessee is a company registered under Section 25 being charitable company. The assessee has not furnished form 10AB for the relevant financial year and details remain unexplained with regard to the nature of expenses and accumulation etc. Learned CIT(Exemption) has noted from the perusal of the details that the assessee has not carried out any charitable activity benefiting general public as envisaged under the provisions of Section 2(15) of the Act. The assessee has not submitted any bills/vouchers in support of its claim and from the pictures and documents submitted by the assessee, he concluded that the dominant objects and activities of the company are not for general public. Finally, learned CIT(Exemption) held that the assessee failed to submit requisite details and documents in support of its claim of carrying out charitable activity as mandated under Section 2(15) of the Act and therefore, the conditions for grant of registration are not satisfied. Hence, he rejected form 10AB and provisional registration was also cancelled. 4. Similarly, learned CIT(Exemption) also rejected the application in form 10AB dated 26th September, 2023 filed under clause (iii) of first proviso to sub-section 5 of Section 80G of the Act. 5. Now, before us, learned counsel for the assessee only requested that one more opportunity be provided before learned CIT(Exemption) and he is ready to file all the required details. To this proposition, learned CIT-DR has not objected. 6. After hearing both the sides and going through the facts and circumstances of the case, we are of the view that the principle of natural justice should have been adhered to. The assessee should be allowed reasonable time to submit the details. The assessee is also advised to file all ITA No.2754 & 2755/Del/2024 3 the relevant details to substantiate its claim that it is a genuine charitable company. Consequent to the above, we set aside both the orders of learned CIT(Exemption) and remand the matter back to his file for fresh adjudication. 7. In the result, both the appeals of the assessee are allowed for statistical purposes. Above decision was pronounced in the open Court on 03-12-2024. Sd/- Sd/- ( ( ( (NAVEEN CHANDRA NAVEEN CHANDRA NAVEEN CHANDRA NAVEEN CHANDRA) ) ) ) (MAHAVIR SINGH (MAHAVIR SINGH (MAHAVIR SINGH (MAHAVIR SINGH) ) ) ) ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT Dated : 03.12.2024 VK. Copy forwarded to: - 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "