SHRI RAM SARUP GUPTA MEMORIAL TRUST,SOUTH WEST DELHI V. CIT EXEMPTION, DELHI, CIVIC CENTRE, DELHI

ITA 452/DEL/2025

AI Insights

The case involves Shri Ram Sarup Gupta Memorial Trust appealing against the decision of the CIT (Exemptions), which rejected their applications for registration under sections 12A(1)(b)(ii) and 80G(5) of the Income-tax Act, 1961. The CIT (Exemptions) had initially rejected the applications citing violations of section 11(5) due to the trust's deposit of Rs. 6,00,000 with M/s Sagar Textile, earning an interest income of Rs. 54,000, which was considered a commercial transaction. Additionally, the CIT (Exemptions) noted the trust's failure to provide complete details and documents to verify the genuineness of its activities. The Tribunal found that the CIT (Exemptions) had not adequately considered the trust's replies and documents, nor provided a sufficient opportunity for the trust to be heard, leading to the decision to remand the matter back for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782143 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Appeal Filed On: 24-01-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: HITENDRA NAHATA
• Keywords: Opportunity of being heard
• Section: 80G

Judgement Text

"Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘B’ BENCH, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 425/DEL/2025 [A.Y. 2024-25] ITA No. 452/DEL/2025 [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T B-55, 5th Floor, Sarve Sanjhee Apartment [Exemptions] Sector – 9, Dwarka, New Delhi New Delhi PAN – AADTS 6067 N (Applicant) (Respondent) Assessee By : Shri Hitendra Nahata, Adv Department By : Ms. Pooja Swaroop, CIT-DR Date of Hearing : 09.09.2025 Date of Pronouncement : 27.10.2025 ORDER PER NAVEEN CHANDRA, A.M:- Both the above captioned separate appeals by the assessee are preferred against the order of the ld. CIT(E), Delhi dated 27.11.2024 rejecting the application for registration u/s 12A(1)(b)(ii) and u/s 80G(5) of the Income-tax Act, 1961 [the Act, for short]. Printed from counselvise.com ITA No. 425/DEL/2025 [A.Y. 2024-25] ITA No. 452/DEL/2025 [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T(E) Page 2 of 5 2. Since both the captioned appeals were heard together and pertain to same assessee, they are disposed of by this common order for the sake of convenience and brevity. 3. Representatives of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules. 4. Brief facts of the case is that the assessee filed an application dated 12.05.2024 in Form 10AB for regular registration u/s 12A(1)(ac)(iii) of the I T Act as also an application dated 15.05.2022 in Form 10AB for regular registration u/s 80G(5)(iii) of the I T Act. The ld. CIT(E) has rejected both the application for grant of registration u/s 12A(1)ac(iii) and 80G(5) of the Income-tax Act, 1961 [the Act, for short]. The CIT(E) found that the assessee had deposited Rs. 6,00,000/- with M/s Sagar Textile and earning an interest income of Rs. 54,000/- and considered it as commercial transactions and violation of section 11(5). The CIT(E) further noted that the assessee has failed to file complete details, information and documents required by the notices to verify the genuineness of the activities of the trust. The CIT (Exemption), thereafter rejected the registration applications vide order dated 27.11.2024. Printed from counselvise.com ITA No. 425/DEL/2025 [A.Y. 2024-25] ITA No. 452/DEL/2025 [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T(E) Page 3 of 5 5. The assessee is aggrieved and has come in appeal before us and submitted that the ld. CIT(E) did not consider the reply of the assessee nor its annexures and passed order. The ld AR vehemently argued that the ld. CIT(A) was not right in rejecting the applications of the assessee for registration 12AB(1)(b)(ii) and u/s 80G of the Act and submitted that the ld. CIT (Exemption) rejected the applications without granting any opportunity of being heard to the assessee. 6. Per contra, the ld. DR relied upon the orders of the ld. CIT(E). 7. We have given a thoughtful consideration to the order of the CIT (Exemption). We find that the assessee has filed several documents and evidences before us, which were filed by the assessee before the CIT(E), to establish the genuineness of the activities of the trust. The rejection of grant of registration by ld. CIT(A) is not justified as the ld. CIT(E) has not given adequate opportunity of being heard to the assessee which is apparent from the record. Accordingly, in the interest of justice and fair play, we restore the issues to the file of the ld. CIT(E). The assessee is directed to furnish the necessary documents for verification and the ld. CIT(E) is directed to examine the same and decide the issues as per the provisions of law after affording reasonable and sufficient opportunity of being heard to the assessee. Printed from counselvise.com ITA No. 425/DEL/2025 [A.Y. 2024-25] ITA No. 452/DEL/2025 [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T(E) Page 4 of 5 8. In the result, appeals of assessee in ITA Nos. 425 and 452/DEL/2025 are allowed for statistical purposes. The order is pronounced in the open court on 27.10.2025. Sd/- Sd/- [MADHUMITA ROY] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: October, 2025. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order . 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 3. Date on which the typed draft Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S./P.S. Printed from counselvise.com ITA No. 425/DEL/2025 [A.Y. 2024-25] ITA No. 452/DEL/2025 [A.Y. 2024-25] Shri Ram Sarup Gupta Memorial Trust Vs. The C.I.T(E) Page 5 of 5 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S./P.S. on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. The date on which the file goes for xerox 12. The date on which the file goes for endorsement 13. The date on which the file goes to the Superintendent for checking 14. The date on which the file goes to the Assistant Registrar for signature on the Tribunal order 15. Date on which the file goes to the dispatch section 16. Date of Dispatch of the Order Printed from counselvise.com "