RAM MANOHAR EDUCATIONAL AND SAMUDAI BAL VIKAS SOCIETY,DELHI V. CIT(EXEMPTION), DELHI, DELHI

ITA 4249/DEL/2025

AI Insights

The case involves the Ram Manohar Educational & Samudai Bal Vikas Society, which appealed against the order of the Commissioner of Income-tax (Exemption), Delhi, rejecting their application for registration under section 12A(1)(ac)(ii) of the Income Tax Act, 1961. The society, established in 1998, sought registration to continue its charitable activities in education and medical relief. The CIT(Exemption) had initially granted provisional registration but later cancelled it due to the society's failure to provide sufficient documentation to substantiate the genuineness of its charitable activities despite multiple opportunities. The Tribunal found that the assessee was not given sufficient opportunity to present its case and thus remitted the matter back to the CIT(Exemption) for a thorough examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834538 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 03-07-2025
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘A’: NEW DELHI. BEFORE SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.4249/DEL/2025 (Assessment Year: N/A) Ram Manohar Educational & Vs. CIT(Exemption) Samudai Bal Vikas Societ , Delhi. Basti Vikas Kendra (MCD), B.I.W. Colony, NTPC, Gate No.1, Badarpur Delhi 110044 (PAN: AAAAR 7585 E) ASSESSEE BY : None REVENUE BY : Sh. Jitender Singh, CIT DR Date of Hearing : 17.11.2025 Date of Order : 06.02.2026 O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER : 1. This appeal is filed by the assessee against the order of ld. Commissioner of Income-tax (Exemption), Delhi (hereinafter referred to ‘ld. CIT (E)’) dated 30.05.2025. 2. None appeared on behalf of the assessee, we proceeded to hear the case with the assistance of Ld. DR 3. Brief facts of the case are, assessee society is incorporated on 02.01.1998 under Registrar of Societies, Government of NCT of New Delhi. Assessee Printed from counselvise.com 2 ITA No.4249/Del/2025 was granted provisional registration vide letter dated 04.04.2022 u/s 12A(1)(ac)(vi) of the Income Tax Act 1961 (in short “Act”). Assessee has filed an application on 30.11.2024 in Form 10AB for regular registration u/s 12A(1)(ac)(ii) of the Act. The main objects of the assessee trust as per the Form 10AB are relief of poor, education, medical and it has also submitted its copy of trust deed along with the form. 4. During the proceedings, assessee was issued questionnaire dated 19.12.2024 with a direction to furnish relevant details/documents/clarifications in support of its claim of registration u/s 12A(1)(ac)(ii) of the Act. Several opportunities were given to the assessee to submit the relevant details as called for in various notices. Ld. CIT(E) has listed the various dates of opportunities granted to the assessee at para 3 of the order. Since assessee has failed to submit the relevant details and failed to specify genuineness of the charitable activities carried out by it, accordingly Ld. CIT(E) has rejected the content filed by the assessee and also rejected the ground for registration u/s 12A(1)(ac)(ii) of the Act. He also proceeded to cancel the Provisional Registration grant of order dated 04.04.2022. 5. Aggrieved with the above order assessee filed an appeal before us raising following grounds of appeal:- 1. Violation of Natural Justice & Faceless Appeal Rules The Society was not granted sufficient opportunity to file voluminous data, despite part compliance and a genuine need for extension. The hearings set on 23-04-25, 06-05-25, 16-05-25 were met with clear intent Printed from counselvise.com 3 ITA No.4249/Del/2025 and reasons for delay. 2. Misapplication of Section 12AB(1)(b)(ii)(B) The AO erroneously concluded \"genuineness\" was lacking without any disproving evidence, despite admitted charitable work since 1998, engagement with beneficiaries, educational outreach, and medical relief programs. 3. Overreach in Cancellation of Provisional Registration Provisional registration is not to be cancelled lightly unless fraud/malafide activity is shown. Delays in submission cannot justify cancellation without full evaluation, especially given Society's longstanding activity record. 4. Arbitrary Demands & Exemptions Misinterpretation The AO treated funds received from government bodies (e.g., UP Water Supply & SC/ST schemes) as commercial or contract receipts disqualifying net receipts under Section 2(15). However, when applied to remain charitable, such receipts should not negate Section 12A/12AB eligibility. 5. Case Law Support Landmark judgments (e.g., Delhi High Court & ITAT rulings) confirm that charitable trusts should be allowed to explain and furnish documents; registration cannot be revoked without substantive evidence. [We will append photocopies and citations upon filing.] 6. At the time of hearing, both counsels agreed that it is ex parte order passed by the Ld. CIT(E) for the reason that assessee has not submitted the relevant information even though several opportunities were granted to the assessee for sake of complete justice, in our considered view the assessee should be provided one more opportunity of being heard. 7. In the result, we are inclined to remit this issue back to the file of Ld. CIT(E) with the direction to give an opportunity to the assessee to submit the Printed from counselvise.com 4 ITA No.4249/Del/2025 relevant information as called to process the Registration u/s 12(i)(ac) of the Act. 8. We also direct the assessee to submit the relevant information and appeared before Ld. CIT(E) without taking any unnecessary adjournments. With the above direction we are inclined to remit the issue back to the file of Ld. CIT(E) to proceed with the verification of the application for grant of registration as per law. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. 10. Order pronounced in the open court on this day of 6th February, 2026. Sd/- Sd/- (SATBEER SINGH GODARA) (S.RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.02.2026 *Mittali Sr. PS Copy forwarded to: 1. Appellant 2. Assessee 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "