SHREE MADHAV CHETNA,ROHTAK V. CIT (EXEMPTIONS), CHANDIGARH

ITA 853/DEL/2025

AI Insights

The case involves Shree Madhav Chetna, a trust, appealing against the decision of the Commissioner of Income Tax (Exemptions), Chandigarh, which rejected their application for registration under section 80G(5)(iii) of the Income Tax Act, 1961. The initial rejection was based on the trust's failure to substantiate that its activities were charitable in nature as per its Memorandum of Association (MOA). The trust filed an appeal with a delay, which was condoned by the Tribunal. The Tribunal found merit in providing the trust another opportunity to present its case and remanded the matter back to the CIT (Exemptions) for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31702 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• 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: AMIT KATOCH
• Keywords: Condonation of delay; Opportunity of being heard; Bonafide belief

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘C’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.853/Del/2025 (ASSESSMENT YEAR 2024-25 Shree Madhav Chetna, Madhav Kunj, Vijay Nagar, Rohtak-124001 PAN: AACTS7727E Vs. CIT (Exemptions), Chandigarh. (Appellant) (Respondent) Assessee by None Department by Shri Amit Katoch, Sr. DR Date of Hearing 21/03/2025 Date of Pronouncement 28/03/2025 O R D E R PER MANISH AGARWAL, AM, This is an appeal filed by the Assessee against the order of ld. Commissioner of Income Tax (Exemptions), Chandigarh [CIT(E), in short] dated 18.11.2024 for Assessment Year 2024-25, rejecting the approval for registration of the assessee trust u/s 80G(5) (iii) of the Income Tax Act, 1961. 2. The present appeal is filed by the assessee with the delay of 40 days. Along with appeal, the assessee has filed an application for condonation of delay wherein it is stated that an appeal against the order of rejection was filed by the appellant before the Tribunal on 06.04.2024 which is pending in appeal No.1579/Del/2024. Since, the said appeal was filed against the 2 ITA No.853 /Del/2025 Shree Madhav Chetna vs. CIT(E) rejection of approval u/s 80G(5), therefore, assessee was under bonafide belief that no fresh appeal is to be filed against the present order of rejection of approval vide order dated 18.11.2024 when the assessee was advised that appeal should be filed against this order also. The present appeal was filed with delay of 14 days. 3. After considering the facts and the prayer wherein the circumstances for delay is explained by the assessee as stated above, we find that the delay is bonafide and there was no malafide intention on the part of the assessee in filing the appeal delayed, therefore, delay is hereby condoned as appeal is admitted for adjudication on merits. 4. Now coming to the appeals of the assessee, we find that Ld. CIT(E) has dismissed the appeal for the reason that assessee has failed to substantiate its activity of charitable in nature in consonance with its objects as defined to MOA and failed to conclusive prove the genuineness of the activities. Since, the assessee has failed to file the requisite documents before the Ld. CIT(E), therefore, the application for registration u/s 12AB was dismissed by the CIT(E). Since, the application u/s 12AB was dismissed, the Ld. CIT(E) has also dismissed the application for registration u/s 80G(5) (iii) of the Act. 5. After considering the arguments, we find that assessee should be provided one more opportunity to file the necessary evidences before the Ld. CIT(E) in order to establish the genuineness of the activity carried out by it of charitable in nature. Accordingly, we remand back the matter to file of CIT(E) 3 ITA No.853 /Del/2025 Shree Madhav Chetna vs. CIT(E) for examination this issue afresh after providing reasonable opportunity of being heard to the assessee. 6. As the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 28.03.2025. Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated 28.03.2025 PK Sr. PS Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "