MAA SIDDHESHWARI CHARITABLE TRUST,DELHI V. CIT EXEMPTION, DELHI

ITA 4616/DEL/2024

AI Insights

The case involves Maa Sidheshwari Charitable Trust, which appealed against the decision of the CIT(E), Delhi, rejecting their application for registration under section 12A and approval under section 80G(5) of the Income Tax Act, 1961. The CIT(E) had initially rejected the applications citing insufficient proof of the genuineness of the trust's activities. The Tribunal found that the CIT(E) had not provided sufficient time for the assessee to present their case and thus restored the matter to the CIT(E) for a fresh determination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34647 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: RISHIPAL BEDI
• Assessee Lawyers: NAVEEN KUMAR
• Keywords: Set aside; Opportunity of being heard; Charitable institution
• Section: 12AA; 12A; 80G

Judgement Text

"Page 1 of 7 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 4616/DEL/2024 [A.Y. ] ITA No. 4617/DEL/2024 [A.Y. ] Maa Sidheshwari Charitable Trust Vs. The C.I.T(E) Shri Kanta Prasad Singh Delhi R/o Village and Post Village Babli City, Near Astha Hospital New Delhi PAN : AAITM 5890 N (Applicant) (Respondent) Assessee By : Shri Naveen Kumar, Adv Shri Gaurav Gupta, CA Department By : Shri Rishipal Bedi, CIT-DR Date of Hearing : 06.03.2025 Date of Pronouncement : 12.03.2025 ITA No. 4616 & 4617/DEL/2024 Maa Sidheshwari Charitable Trust Page 2 of 7 ORDER PER NAVEEN CHANDRA, A.M:- Both the above captioned separate appeals by the assessee are preferred against the order of the ld. CIT(E), Delhi dated 22.08.2024 rejecting the application for registration u/s 12A of the Income tax Act, 1961 [the Act, for short] and approval u/s 80G(5) of the Act. 2. Since both the captioned appeals were heard together and pertain to same assessee, they are disposed of by this common order for the sake of convenience and brevity. 3. Representatives of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules. ITA No. 4616 & 4617/DEL/2024 Maa Sidheshwari Charitable Trust Page 3 of 7 ITA No. 4617/DEL/2024 4. Briefly stated the facts of the case are that the assessee is a trust incorporated on 25.09.2023. The assessee filed an application in form No.10AB on 26.09.2023 seeking registration u/s 12A of the Act. 5. In order to examine and verify the genuineness of the objects of the trust or institution, in the light of the provisions of section 12AA of the Act, the CIT(Exemption) issued notices to which the assessee filed a reply and sought further time for more submissions. The CIT (Exemption) considered the submissions filed and held that the assessee does not conclusively prove the genuineness of the activities and rejected the registration. 6. Now the assessee is in appeal before us. 7. Before us, the Counsel for the assessee vehemently stated that the ld. CIT(A) was not right in rejecting the application of the assessee for registration u/s 12A of the Act. It is the say of the ld. counsel for the assessee that the appeal was rejected by CIT(E) vide Form No 10AD because ITA No. 4616 & 4617/DEL/2024 Maa Sidheshwari Charitable Trust Page 4 of 7 according to him the trust could not conclusively prove genuineness of activities. 8. The ld AR further submitted that during hearing the assessee filed all necessary documents as required by the ld CIT(E) and there was enough material on record to prove the genuineness of the society and activities carried by it. In Form No 10AD the Id CIT(E) admitted that material filed by the society was showing charitable activities but rejected application by observing that the society could not conclusively prove the genuineness of its activities. The ld. counsel for the assessee argued that the reason given by the ld. CIT(E) was vague. 9. Per contra, the ld. DR relied upon the orders of the ld. CIT(E). 10. We have given a thoughtful consideration to the order of the CIT (Exemption). The assessee has furnished several documents and evidences which were furnished before the ld. CIT(E) before us to establish the genuineness of the activities of the trust. Be that as it may, we are of the ITA No. 4616 & 4617/DEL/2024 Maa Sidheshwari Charitable Trust Page 5 of 7 view that the ld. CIT(E) has not given sufficient time to assessee to present its case. 10. In view of the above factual position, we are of the considered view that the CIT(E) ought to have given a reasonable and adequate opportunity of being heard to the assessee. Therefore, in the interest of justice and fair play, we deem it fit to restore the issue of registration u/s 12A of the Act to the file of the CIT(E). The CIT(E) is directed to rehear and consider all the documents submitted along with the application after affording a reasonable and adequate opportunity of being heard to the assessee. The ground of the appeal is allowed for statistical purposes. ITA No. 4616/DEL/2024 11. The solitary grievance of the assessee is that ld. CIT(E) was not justified in not granting approval u/s 80G of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short]. ITA No. 4616 & 4617/DEL/2024 Maa Sidheshwari Charitable Trust Page 6 of 7 12. Since we have already set aside the issue of grant of Registration u/s 12A to the file of the CIT(E) for a fresh determination regarding genuineness of the Trust activity, we deem it fit to set aside this issue of 80G(5) approval also to the file of the CIT(E). The ground of appeal is allowed for statistical purpose. 19. In the result, both appeal of assessee in ITA No. 4616/DEL/2024 and ITA No. 4617/DEL/2024 are allowed for statistical purposes. The order is pronounced in the open court on 12.03.2025. Sd/- Sd/- [MADHUMITA ROY] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 12th MARCH, 2024. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi ITA No. 4616 & 4617/DEL/2024 Maa Sidheshwari Charitable Trust Page 7 of 7 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 fair Tribunal Order is placed before the Dictating Member for pronouncement 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 to the Assistant Registrar for endorsement of the order 12. Date of Despatch of the Order "