SHRI DIGAMBER JAIN SAMAJ KASAN(REGD),DELHI V. CIT EXEMPTION, DELHI

ITA 906/DEL/2025

AI Insights

The case involves Shri Digamber Jain Samaj Kasan, a society seeking to restore its registration under Section 12A of the Income Tax Act, which was initially provisionally granted but later rejected by the CIT(E). The society appealed against the CIT(E)'s decision, arguing that the rejection was made without proper consideration of the documents and submissions that demonstrated compliance with the statutory requirements for registration under Section 12A. The Tribunal found procedural lapses in the CIT(E)'s handling of the case and remanded the matter back for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716834 (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: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S. GUPT
• Assessee Lawyers: RAKESH JOSHI
• Keywords: Principle of natural justice
• Section: 12A

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.906/DEL/2025 Assessment Year: 2021-22 Shri Digamber Jain Samaj Kasan (Regd) 2769 Ist Floor Baan Rassi Market Qutab road Sadar Bazar Delhi - 110006 PAN No. AASTS0788F 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 31.12.2024 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 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 CIT(E) arbitrarily ignored the documentary evidence, submissions, and explanations provided by the appellant, which were sufficient to prove compliance with statutory requirements. 4 the CIT(E) acted in violation of the principles of natural justice by canceling the 12A registration without properly considering the submissions and documents submitted by the appellant. 5. the CIT(E) has unjustly deprived the appellant of the rightful exemption under Section 12A, which has been duly granted and complied with over the years. 6.The appellant craves leave to add, amend, alter or delete 3. The assessee is a society incorporated on October 09,1997. The applicant has obtained provisional registration vide CPC order No. AASTS0788FE20206 issued for the period from Printed from counselvise.com 3 AY2021-22 to AY2023-24 under Sub clause (vi) of clause (ac) of sub section (1) of section 12A of the Income Tax Act 1961(in short “the Act”). The assessee applied for the regular registration u/s 12A (10 (ac) (iii) of the Act. Ld. CIT(E) issued the questionnaire to the assessee. In the compliance of the notice the assessee partly furnished the reply. After considering the reply submitted by the assessee the Ld. CIT(E) rejected the registration application and cancelled the provisional registration of the assessee. Aggrieved the order of the Ld. CIT(E) the assessee filed the appeal before the Tribunal. 3. The Ld. AR submitted that without considering the documents submitted by the assessee the Ld. CIT (E) dismissed the appeal of the assessee. to substantiate the compliance with the requirements of Section 12A. He further submitted that the assessee has filed the documents to establish the fact the assessee is doing the charitable activities. 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 CIT(E) the assessee filed the partly submissions before the authority, for which the appeal was dismissed by the Ld. CIT(E). Printed from counselvise.com 4 6. Since in the instant case the CIT(E) has dismissed the appeal without considering the documents submitted by the assessee 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 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 allowed. 7. In the result, the appeal filed by the assessee is allowed for statistical purpose. 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 "