PC BOUDH COMPUTER AND VOCATIONAL TRAINING ORGANISATION,DELHI V. COMMISSIONER OF INCOME TAX (EXEMPTION), DELHI

ITA 639/DEL/2025

AI Insights

The case involves two appeals by PC Boudh Computer and Vocational Training Organisation against the orders of the Commissioner of Income Tax (Exemption), which rejected the applications for registration under sections 12A(1)(ac)(iii) and 80G(5) of the Income Tax Act, 1961. The Tribunal found that the CIT(E) had not provided adequate opportunity for the assessee to present their case and had not considered the complete details submitted by the assessee, leading to a decision to set aside the CIT(E)'s orders and remand the matters for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470071 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2024-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: AMANDEEP MEHTA
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Non passing of speaking order

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL DELHI “DIVISION BENCH-C” NEW DELHI Before: Shri Mahavir Singh, Vice President & Shri Ramit Kochar, Accountant Member PC Boudh Computer and Vocational Training Organisation B-1457, Phase 2, Metro Vihar, Holambi Kalan, Delhi- 110082 PAN:AAIAP2215R (Appellant) v. The Commissioner of Income Tax (Exemption) Civic Centre Minto Road New Delhi-110002 (Respondent) Assessee by: Shri Amandeep Mehta, Advocate Revenue by: Shri Sanjay Kumar, Sr. DR Date of hearing : 14-02-2025 Date of pronouncement : 14-02-2025 आदेश आदेश आदेश आदेश/ORDER These two appeals in ITA No.639 & 649/Del/2025 for assessment year:NA, filed by the assessee before Income Tax Appellate Tribunal, Delhi ‘C’ Bench, New Delhi has arisen from two separate orders both dated 09.12.2024 passed by Ld. Commissioner of Income-tax(Exemption), Delhi, firstly order ITA No. 639 & 694/Del/2025 Assessment Year: NA I.T.A No.639 & 649/Del/2025 A.Y.:NA Page No. PC Boudh Computer and Vocational Training Organisation 2 dated 09.12.2024 passed by ld. CIT(E) in DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1071003712(1) dismissing application filed by the assessee in Form No. 10AB for registration u/s 12A(1) (ac)(iii) of the Income-tax Act,1961 wherein provisional registration earlier granted for the period assessment year 2022-23 to assessment year 2024-25 also stood cancelled by ld. CIT(E), and secondly order dated 09.12.2024 passed by ld. CIT(E) in DIN and Notice No. ITBA/EXM/F/EXM45/2024-25/1071003888(1) rejecting application in Form No. 10AB u/s 80G(5) of the 1961 Act for grant of approval u/s 80G(5) wherein also provisional approval earlier granted vide order dated 07.04.2022 for the period from 07.04.2022 to assessment year 2024-25 also stood cancelled by ld. CIT(E). 2. The grounds of appeal raised by the assessee in Memo of Appeal filed with the Income Tax Appellate Tribunal, Delhi Bench, Delhi in ITA no. 639/Del/2025 for assessment year:NA, reads as under:- “1. On the facts and in the circumstances of the case and in law the order of the learned Commissioner of Income Tax(Exemption), Delhi rejecting the application filed in Form No. 10AB and cancelling the provisions registration granted under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 valid from AY 2022-23 to 2024-25 arbitrarily is misconceived , fallacious and illegal which must be quashed with directions to grant the registration as sought. I.T.A No.639 & 649/Del/2025 A.Y.:NA Page No. PC Boudh Computer and Vocational Training Organisation 3 2 In view of the facts and in the circumstances of the case and in law, the Ld. CIT(E) wrongly rejected the application on the alleged grounds of incomplete details, despite the Appellant having submitted all necessary documents. The rejection is mechanical, perverse , and without due application of mind. 3. The Ld. CIT(E) erred in rejecting the application without providing an effective opportunity to clarify , rectify , or furnish additional documents, violating the principles of natural justice. The rejection is arbitrary and liable to be set aside. 4. In view of the facts and in the circumstances of the case and in law, the impugned order lacks proper , reasoning and fails to specify which details were deemed inadequate, making it a non-speaking order, contrary to the settled principle that administrative orders must provide clear justification. 5. In view of the facts and in the circumstances of the case and in law, Ld. CIT(E)’s rejection is based on mere procedural lapses, which ought not to have come in the way of substantive justice. 6. That the appellant craves to add, alter , delete, or modify any of the above grounds of appeal.” 2.2.The grounds of appeal raised by the assessee in Memo of Appeal filed with the Income Tax Appellate Tribunal, Delhi Bench, Delhi in ITA no. 649/Del/2025 for assessment year:NA, reads as under:- “1. On the facts and in the circumstances of the case and in law the order of the learned Commissioner of Income Tax(Exemption)[‘CIT(E)’], Delhi rejecting the application filed in Form No. 10AB and cancelling the provisions registration I.T.A No.639 & 649/Del/2025 A.Y.:NA Page No. PC Boudh Computer and Vocational Training Organisation 4 granted under clause (iii) of the first proviso to Section 80G(5) of the Income Tax Act, 1961 valid from AY 2022-23 to 2024-25 arbitrarily is misconceived , fallacious and illegal which must be quashed with directions to grant the registration as sought. 2 In view of the facts and in the circumstances of the case and in law, the Ld. CIT(E) wrongly rejected the application on the alleged grounds of incomplete details, despite the Appellant having submitted all necessary documents. The rejection is mechanical, perverse , and without due application of mind. 3.The Ld. CIT(E) erred in rejecting the application without providing an effective opportunity to clarify , rectify , or furnish additional documents, violating the principles of natural justice. The rejection is arbitrary and liable to be set aside. 4.In view of the facts and in the circumstances of the case and in law, the impugned order lacks proper , reasoning and fails to specify which details were deemed inadequate, making it a non-speaking order, contrary to the settled principle that administrative orders must provide clear justification. 5.In view of the facts and in the circumstances of the case and in law, Ld. CIT(E)’s rejection is based on mere procedural lapses, which ought not to have come in the way of substantive justice. 6.That the appellant craves to add, alter , delete, or modify any of the above grounds of appeal.” 3.The assessee filed early hearing petition(s) citing several reasons for fixing these two appeals early out of turn. While hearing early hearing petitions, it was observed that two separate orders both dated 09.12.2024 rejecting assessee’s application for registration u/s 12A(1)(ac)(iii) and 80G(5) I.T.A No.639 & 649/Del/2025 A.Y.:NA Page No. PC Boudh Computer and Vocational Training Organisation 5 respectively were passed by ld. CIT(E) within short span on the grounds that the assessee has only filed part replies , while the assessee having raised grounds of appeal that proper opportunity of hearing in accordance with principles of natural justice were not granted by ld. CIT(E). It is also contended that complete replies were filed but the same were not considered by ld. CIT(E). These two appeals were taken up for final hearing after taking consent of both the parties. 4. First , we shall take up appeal of the assessee in ITA no. 639/Del/2025 for assessment year:N.A.. The brief facts of the case are that the assessee filed an application in Form No 10AB for registration of the trust u/s 12A(1)(ac)(iii) of the 1961 Act, vide application No. CIT(Exemption), Delhi/2024- 25/12AA/12574 on 29.06.2024. The provisional registration was granted by Revenue on 07.04.2022 having unique registration number AAIAP2215RE2021101 for the period from assessment year 2022-23 to 2024-25. The ld. CIT(E) issued notice of hearing dated 05.07.2024, 20.09.2024 and 25.11.2024. The assessee as per ld. CIT(E) filed part reply, while led to the rejection of the application by ld. CIT(E) and provisional registration earlier granted also stood cancelled, on the grounds that the assessee has failed to file details/information required in support of genuineness of the activities , charitable objects and commencement of activities . I.T.A No.639 & 649/Del/2025 A.Y.:NA Page No. PC Boudh Computer and Vocational Training Organisation 6 Before proceeding further, it will be relevant to refer to grounds of appeal wherein the assessee has contended that the application filed by the assessee was disposed off by ld. CIT(E) without providing proper opportunity of hearing and principles of natural justice were breached. Further, it is contended that complete details were filed before ld. CIT(E), but the same were not considered. It is further contended that a non speaking order was passed by ld. CIT(E) without providing reasons for rejection . Before us, the ld. Counsel for the assessee prayed that order dated 09.12.2024 passed by ld. CIT(E) be set aside and matter restored to the file of ld. CIT(E) for grant of proper opportunity of being heard to the assessee before disposing of the application for registration u/s 12AB on merits in accordance with law. The Department has no objection if the matter is restored to the file of ld. CIT(E) for denovo consideration of application filed by the assessee for registration u/s 12A(1)(ac)(iii). It could be seen that the ld. CIT(E) issued three notices , the first notice of hearing was issued by ld. CIT(E) on 05.07.2024 and the order was passed by ld. CIT(E) on 09.12.2024. The assessee has also claimed that complete details were filed before ld. CIT(E) but the same was not considered by ld. CIT(E). The ld. CIT(E) rejected application filed by the assessee for grant of registration u/s 12AB and also the provisional registration earlier granted also stood cancelled by ld. CIT(E) vide aforesaid order. Serious I.T.A No.639 & 649/Del/2025 A.Y.:NA Page No. PC Boudh Computer and Vocational Training Organisation 7 prejudice is caused to the assessee. Thus, keeping in view of reasonableness and in the interest of justice and fairness to both the parties, we are setting aside the order dated 09.12.2024 passed by ld. CIT(E) and restore the matter back to the file of ld. CIT(E) for fresh determination of application filed by the assessee for grant of registration u/s 12A(1)(Ac)(iii) on merits in accordance with law, after giving proper and reasonable opportunity of being heard to the assessee. The ld. CIT(E) will decide the application on merits in accordance with law. We clarify that we have not commented on the merits of the issue in this appeal, and all the contentions are kept open. The assessee is directed to comply with the notices issued by ld. CIT(E) in the set aside proceedings , otherwise ld. CIT(E) shall be free to decide the application of the assessee on merits in accordance with law. Thus, in the result, the appeal of the assessee is allowed for statistical purposes. We order accordingly. 5.In the result , appeal of the assessee in ITA no. 639/Del/2025 for assessment year : NA is allowed for statistical purposes. ITA No. 649/Del/2025- Assessment Year:NA I.T.A No.639 & 649/Del/2025 A.Y.:NA Page No. PC Boudh Computer and Vocational Training Organisation 8 6.Since this appeal deals with the application filed by the assessee for grant of approval u/s 80G(5) , and the facts are similar in this appeal as are in ITA No. 639/Del/2024, and hence our decision in ITA No. 639/Del/2024 for assessment year: NA vide preceding para’s of this order, shall apply mutatis mutandis to ITA no. 649/Del/2024 for assessment year:NA. Thus, in the result, the appeal of the assessee in ITA no. 649/Del/2024 for assessment year : NA is allowed for statistical purposes. We order accordingly. 7. In the result , appeal of the assessee in ITA no. 649/Del/2024 for assessment year : NA is allowed for statistical purposes. 8.In the result , appeal(s) of the assessee in ITA no. 639 & 649/Del/2024 for assessment year(s) : NA are allowed for statistical purposes. Order pronounced on 14.02.2025 at New Delhi in Open Court in the presence of both the parties. Sd/- Sd/- (MAHAVIR SINGH) (RAMIT KOCHAR) VICE PRESIDENT ACCOUNTANT MEMBER Delhi : Dated :14 /02/2025 "