SPORTSEED FOUNDATION,DELHI V. ITO WARD 2(2), DELHI

ITA 4849/DEL/2025

AI Insights

The case involves Sportseed Foundation, which appealed against the decision of the CIT (Exemption), Delhi, rejecting their applications for registration under section 12AB(1)(b)(ii) and for approval under section 80G(5)(iii) of the Income-tax Act, 1961. The CIT (Exemption) had rejected the applications on the grounds that the foundation had not conducted any charitable activities or incurred any expenditures, and had not provided any supporting bills and vouchers. The Tribunal noted that the foundation was only incorporated on May 26, 2022, and thus had not commenced any activities in the financial year 2022-23, which justified the delay in their applications.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791773 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2024-2025
• Appeal Filed On: 08-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Keywords: Opportunity of being heard

Judgement Text

"Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 4848/DEL/2025 [A.Y. 2024-25] ITA No. 4849/DEL/2025 [A.Y. 2024-25] Sportseed Foundation Vs. The I.T.O H. No. D-80, Ground Floor Ward -2(2) Rangpuri, Vasant Kunj, New Delhi New Delhi PAN – ABICS 6034 J (Applicant) (Respondent) Assessee By : None Department By : Shri Dayainder Singh Sidhu, CIT- DR Date of Hearing : 24.11.2025 Date of Pronouncement : 10.12.2025 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 21.12.2023 rejecting the application for registration u/s 12AB(1)(b)(ii) and Printed from counselvise.com ITA No. 4848/DEL/2025 [A.Y. 2024-25] ITA No. 4849/DEL/2025 [A.Y. 2024-25] Sportseed Foundation Vs. The ITO Page 2 of 5 application for grant of approval u/s 80G(5)(iii) of the Income-tax Act, 1961 [the Act, for short]. 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. None appeared on behalf of the assessee. We decided to proceed ex-parte with assistance of the ld DR. The ld. DR was heard at length and the case records were carefully perused. 4. There is a delay of 529 days in filing the appeals. The reasons cited by the assessee in the application filed by the assessee seem to be plausible. We, therefore, condone the delay. 5. Brief facts of the case are that the assessee filed application for registration u/s 12AB(1)(b)(ii) of the Act and Form 10AB for approval u/s 80G(5)(iii) of the of the Act. The ld. CIT (Exemption) issued notices alongwith questionnaire and requested the assessee to furnish several documents to which the assessee filed its reply by furnishing few details and balance sheet. 6. The CIT (Exemption) rejected the registration applications vide order dated 21.12.2023 on the grounds that the assessee has not carried out any expenditure, has not carried out any charitable activities and has not furnished any bills and vouchers Printed from counselvise.com ITA No. 4848/DEL/2025 [A.Y. 2024-25] ITA No. 4849/DEL/2025 [A.Y. 2024-25] Sportseed Foundation Vs. The ITO Page 3 of 5 7. The assessee is aggrieved and has come in appeal before us. It is the say of the assessee that the ld. CIT(E) was not justified in rejecting the application for registration u/s 12AB(1)(b)(ii) of the Act as well as application for grant of approval u/s 80G(5)(iii) of the Act on the grounds that the assessee has not carried out any expenditure, has not carried out any charitable activities and has not furnished any bills and vouchers. The assessee pointed out that the assessee was incorporated only on 26.05.2022 and, therefore, could not commence the charitable activities in F.Y. 2022-23 itself. 8. Per contra, the ld. DR relied upon the orders of the ld. CIT(E). 9. We have given a thoughtful consideration to the order of the CIT (Exemption). We find that at the time of registration, the ld. CIT(E) is required to examine the genuineness of the activities of the institution. We find the rejection of grant of approval for registration by ld. CIT(E) is not justified. Accordingly, in the interest of justice and fair play, we deem it fit restore the issue of registration to the file of the ld. CIT(E) to take into consideration the nascent stage of the institution. The assessee is directed to furnish the necessary documents for verification and the ld. CIT(E) is directed to examine the same for grant of registration u/s 12AB(1)(b)(ii) and for grant of approval u/s 80G(5)(iii) Printed from counselvise.com ITA No. 4848/DEL/2025 [A.Y. 2024-25] ITA No. 4849/DEL/2025 [A.Y. 2024-25] Sportseed Foundation Vs. The ITO Page 4 of 5 of the Act as per the provisions of law after affording reasonable and sufficient opportunity of being heard to the assessee. 10. In the result, appeals of assessee in ITA Nos. 4848 and 4849/DEL/2025 are allowed for statistical purposes. The order is pronounced in the open court on 10.12.2025. Sd/- Sd/- [YOGESH KUMAR U.S] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 10th DECEMBER, 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 order is placed before the Dictating Member 3. Date on which the typed draft order is placed before the other Member [in case of DB] 4. Date on which the approved draft order comes to the Sr. P.S./P.S. 5. Date on which the fair Order is placed before the Dictating Member for sign 6. Date on which the fair order is placed before the other Member for sign [in case of DB] 7. Date on which the Order comes back to the Sr. P.S./P.S for uploading on ITAT website Printed from counselvise.com ITA No. 4848/DEL/2025 [A.Y. 2024-25] ITA No. 4849/DEL/2025 [A.Y. 2024-25] Sportseed Foundation Vs. The ITO Page 5 of 5 8. Date of uploading, inf not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which the file goes for Xerox 11. Date on which the file goes for endorsement 12. The date on which the file goes to the Superintendent for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to the dispatch section for dispatch the Tribunal order 15. Date of Dispatch of the Order 16. Date on which the file goes to the Record Room after dispatch the order Printed from counselvise.com "