SHRI HARI NAINI RURAL DEVELOPMENT FOUNDATION,DELHI V. CIT(EXEMPTION), DELHI, CIVIC CENTRE

ITA 5108/DEL/2024

AI Insights

The case involves Shri Hari Naini Rural Development Foundation, which appealed against the decision of the CIT(Exemption) rejecting their applications for registration under sections 12A(1)(ac)(iii) and 80G(5)(iii) of the Income Tax Act. The CIT(Exemption) had rejected the applications on grounds that the appellant failed to provide sufficient details about a proposed medical college, including infrastructure, number of students, and land ownership. The Tribunal found that the CIT(Exemption) had not adequately considered the appellant's responses and documents, leading to a decision to remand the case for further examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 30449 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: misc
• Laws Referred To: Section 12A(1)(ac)(iii) of the Act, Section 80G(5)(iii) of the Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NIDHI SINGH
• Assessee Lawyers: SANDEEP GOEL
• Keywords: Opportunity of being heard
• Section: 80G

Judgement Text

"1 ITA Nos. 5108 & 5112/Del/2024 Shri Hari Naini Rural Development Vs. CIT(E) IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCH ‘G’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 5108/DEL/2024 (A.Y. 2025-26) ITA No. 5112/DEL/2024 (A.Y. 2025-26) Shri HariNaini Rural Development Foundation, Flat No. 60, GF, Block G, Pocket-3, DDA Flat, Bindapur, Uttam Nagar, DK Mohan Garden, Delhi- 110059 PAN: ABICS4378P Vs. CIT(Exemption) Civic Centre, Minto Road, Delhi Appellant Respondent Appellant by Sh. Sandeep Goel, Adv Revenue by Ms.Nidhi Singh, CIT, DR Date of Hearing 11/03/2025 Date of Pronouncement 12/03/2025 ORDER PER BENCH: The appellant has challenged the orders of the Ld. CIT(E) Delhi, dated 25/09/2024, wherein the Ld. CIT(E) rejected the applications of the Appellant seeking registration u/s 12A(1)(ac)(iii) of the Act and also rejected the application for grant of approval under 80G (5) (iii) of the Act. 2. The Ld. Counsel for the appellant submitted that the appellant has produced various details and clarifications in response to the notices issued by the Ld. CIT (E) by way of several replies, however, the 2 ITA Nos. 5108 & 5112/Del/2024 Shri Hari Naini Rural Development Vs. CIT(E) Ld. CIT(E) without considering the documents and clarification given by the Appellant, without discussing the issues raised by the appellant rejected the applications in a cryptic manner. Thus, submitted that the Ld. CIT(E) has committed error in rejecting the applications. 3. Per contra, the Ld. Departmental Representative submitted that the Appellant has not provided details of medical college it proposes to start with respect to the number of students, infrastructure of the college, details of construction etc. Further, no documents related to approval being sought from the civic authorities for starting the medical college has been provided by the applicant. Further submitted that the Appellant has also not acquired the land, therefore, the Ld. CIT(E) rightly rejected the applications of the Assessee which requires no interference at the hands of the Tribunal. 4. We have heard both the parties and perused the material available on record. It is seen from the order of the Ld.CIT(E)the applications of the appellant has been rejected on the ground that even after providing sufficient opportunity the Assessee could not provide details of medical college it proposes to start with respect to the number of students, infrastructure of the college, details of construction etc. Further, no documents related to approval being sought from the civic authorities for starting the medical college has been provided by the applicant and the appellant could not prove the ownership of the land 3 ITA Nos. 5108 & 5112/Del/2024 Shri Hari Naini Rural Development Vs. CIT(E) etc. It is the specific case of the Appellant that the replies filed by the appellant have not been considered and the order impugned has been passed in a cryptic manner without considering the replies filed by the Appellant. 5. Considering the above facts and circumstances, we are of the considered opinion, that if an opportunity is given to the appellant to substantiate the claim in support of the applications for registration, substantial justice would be rendered.Accordingly, we remand the matter to the file of the Ld. CIT(E) with a direction to the appellant to provide all the necessary documents to CIT(E) in support of applications of registrations u/s 12A(1)(ac)(iii) of the Act and under 80G (5) (iii) of the Act. The Ld. CIT(E) is also directed to consider the documents produced by the Appellant and passed in appropriate order in accordance with law. Needless to say, the Ld. CIT(E) shall provide opportunity of being heard to the Appellant. 6. In the result, the Appeals of the Appellant in ITA Nos. 5108/Del/2024 and 5112/Del/2024 are partly allowed for statistical purpose. Order pronounced in the open court on 12th March, 2025 Sd/- Sd/- (BRAJESH KUMAR SINGH) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:-12.03.2025 R.N, Sr.P.S* 4 ITA Nos. 5108 & 5112/Del/2024 Shri Hari Naini Rural Development Vs. CIT(E) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "