SHRI DIGAMBER JAIN PANCHAYAT,DELHI V. CIT EXEMPTION, DELHI

ITA 910/DEL/2025

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The case involves Sh. Digamber Jain Panchayat, a society registered under the Societies Registration Act, 1860, which appealed against the decision of the Commissioner of Income Tax (Exemption), Delhi. The CIT(E) had rejected the society's application for registration under Section 80G, which is crucial for tax exemptions for charitable activities. The society argued that their activities, which include religious, social, and cultural functions, benefit the general public and comply with the requirements of Section 80G. The Tribunal found that the CIT(E) had dismissed the application due to non-compliance as the assessee did not submit required documents in time, and thus restored the matter for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716836 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2021-2022
• Appeal Filed On: 17-02-2025
• Laws Referred To: Section 80G, Section 12 A(1)(ac)(ii) of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S. GUPT
• Assessee Lawyers: RAKESH JOSHI
• Keywords: Principle of natural justice
• Section: 12; 80G

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”, DELHI BEFORE SH. S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SH. SUDHIR KUMAR, JUDICIAL MEMBER ITA No.910/DEL/2025 Assessment Year: 2021-22 Sh. Digamber Jain Panchayat, 719/23 Santna gar central Delhi Karol Bagh -110005 PAN No. AADAS4234N Vs. CIT Exemption Delhi (APPELLANT) (RESPONDENT) Appellant by Sh. Rakesh Joshi, CA Respondent by Ms. Amisha S. Gupt, CIT DR Date of hearing: 14/08/2025 Date of Pronouncement: 20/08/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as “CIT(E)”] vide order dated 30.01.2024 pertaining to A.Y. 2021-22. 2. The assessee has raised the following grounds in appeal: Printed from counselvise.com 2 1. The learned Commissioner of Income Tax has grossly eared in rejecting the registration u/s 80G without considering the facts and circumstances of the case. 2. The learned Commissioner of Income Tax has not considered the material place before him during the proceedings. 3. The learned Commissioner of Income Tax ignored the detailed submissions made by the appellant, which included documentary evidence such as audited financial statements, activity reports, beneficiary details, and other supporting documents to substantiate the charitable nature of its operations. 4. The learned Commissioner of Income Tax wrongly held that the society is primarily engaged in religious activities, whereas the appellant has demonstrated with evidence that its activities are charitable and benefit the general public at large, irrespective of religion. 5. The learned Commissioner of Income Tax erred in holding that the appellant failed to provide necessary proof of charitable activities despite the submission of ample evidence to prove compliance with the conditions of Section 80G. 6. The learned Commissioner of Income Tax acted arbitrarily and in violation of natural justice by canceling the registration Printed from counselvise.com 3 without properly considering all material facts and documents submitted by the appellant. 3. The assessee is a society duly registered under the Societies Registration Act 1860 vide registration dated 28 November, 1957. Since inception the Society has been engaged in activities for the religious, social and cultural upliftment of the community and for the benefit of general public. At the time of incorporation, the main objects of the society were: 1. To organize and celebrate religious, society and cultural functions and to take steps for imparting religious and moral training to children, youngsters and adults. 2. To construct and manage Jain temple (s) 3. To run school, library, regarding room dispensary, Dharamshala community hall, etc. 4. To create feelings of mutual love, brotherhood and to do other activities for the good of the Jain Community in particular and humanity in general. The assessee filed an application electronically on 19-07-2023in Form No. 10AB seeking registration u/s 12 A(1)(ac)(ii) of the Act. The Ld. CIT(E) rejected the application against which the assessee is in appeal before us. Printed from counselvise.com 4 3. The Ld. AR submitted that without considering the documents submitted by the assessee the Ld. CIT (E) dismissed the registration application of the applicant. 4. The Ld. DR has relied upon the orders of the lower authority. 5. We have heard the rival contentions and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. CIT(E), the assessee did not file his submissions before the authority, for which the application for grant of registration, was dismissed in non-compliance by the Ld. CIT(E). 6. Since in the instant case the Ld. CIT(E) has dismissed the appeal in non-compliance therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantive its claim and decide the issue as per fact and law. The assessee is also directed to appear before the CIT(E) and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. Printed from counselvise.com 5 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 20.08.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) Neha, Sr. PS Date:20.08.2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI Printed from counselvise.com "