SRI SACHIDANAND SAKSHI MAHILA MANDAL,NEW DELHI V. SH. PRAKASH DUBEY CIT(E ), DELHI

ITA 2995/DEL/2025

AI Insights

The case involves Sri Sachchidanand Sakshi Mahila Mandal, a society incorporated on 10.05.1967, which appealed against the decision of the Commissioner of Income Tax (Exemption) rejecting their application for approval under section 80G of the Income Tax Act, 1961. The rejection was based on the incomplete documentation and lack of evidence supporting the charitable activities of the society. The society argued that they were not given a proper opportunity to respond to the queries raised by the CIT(E). The tribunal found merit in the society's argument and remanded the case for a fresh decision, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783023 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 03-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: K.V.S. GUPTA
• Keywords: Opportunity of being heard
• Section: 12A; 14A; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER, AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA NO. 2995/Del/2025 A.YR. : ----- SRI SACHCHIDANAND SAKSHI MAHILA MANDAL, R-52, GREATER KAILASH-I, NEW DELHI (PAN: AAABS0021R) VS. COMMISISONER OF INCOME TAX (EXEMPTION), NEW DELHI (APPELLANT) (RESPONDENT) Appellant by : Sh. K.V.S. Gupta, Adv. Respondent by : Sh. Dayainder Singh Sidhu, CIT(DR) Date of hearing : 09.09.2025 Date of pronouncement : 28.10.2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER : This appeal by the assessee is directed against the order dated 25.03.2025 of the Ld. CIT (Exemption), Delhi passed under clause (ii)(b)(B) of second proviso to section 80G(5) of the Income Tax Act, 1961. 2. The brief facts of the case are that applicant is a society and its date of incorporation is 10.05.1967. The applicant has filed an application dated 11.9.2024 in Form 10AB for approval u/s. 80G under section code 14A of the Income Tax Act, 1961. The applicant was issued a questionnaire dated 15.10.2024 with a request to furnish certain details / documents / clarifications Printed from counselvise.com 2 | P a g e in support of its claim of registration u/s. 12A (1)(ac)(iii) and accordingly the case was fixed for compliance on 30.102.2024, but the applicant did not file reply. However, the applicant has responded on 26.10.2024 by way of copy of registration of society, Memorandum of Association of society, NOC, Declaration, financial statements. etc. On perusal of the documents filed by the applicant, it was noted that the applicant has not submitted complete details required vide questionnaire dated 15.10.2024, hence, further opportunity was afforded vide letter dated 4.3.2025 to file the remaining details and some additional details / clarifications / documents by 10.3.2025, but applicant did not file the same. CIT(E) based on the documents available, noted that the applicant has not provided bills / vouchers in support of expenses claimed and failed to prove that the assesse has undertaken any activity for which the society was formed and no expenses were claimed on the objectives. It was further noted that as per the bank statement Rs. 61,10,700/- and of Rs. 48,66,420/- paid to Sh. Kanti Prasad Gupta and Rs. 81,10,700/- and Rs. 32,44,280/- paid to Sh. Anuj Gupta in FY 2023-24. However, no details of these payments was submitted. In view of above, Ld. CIT(E) observed that applicant has failed to satisfy genuineness of charitable nature of its activities and thus application filed in Form 10Ab for grant of approval u/s. 80G was rejected. Aggrieved, assessee is in appeal before us. 3. Ld. AR has submitted that CIT(E) is erred in not giving proper opportunity of hearing and rejecting the application for registration / approval u/s. 80G(5) and also erred in not serving any letter dated 4.3.2025 for filing remaining details and some additional details / clarifications/ documents by 10.03.2025 and thereby denying any opportunity of hearing It was further submitted that CIT(E) has not served the notice on designated email / address in PAN and not provided a specific opportunity before rejecting the application u/s. 80G (5) of the Act. Per contra, Ld. DR relied upon the order of the Ld. CIT(E). Printed from counselvise.com 3 | P a g e 4. We have heard both the parties and perused the records. In view of the aforesaid facts narrated by the Ld. AR for the assessee and in the interest of justice, the matter is remanded back to the file of the Ld. CIT(E) to consider all the details, evidences/documents etc. to be filed by the Applicant and then decide the application for grant of approval u/s. 80G, afresh, in accordance with law, after giving adequate opportunity of being heard to the applicant. However, Applicant is directed to furnish the complete details/ evidences before the Ld. CIT(E) in accordance with law. We hold and direct accordingly. 5. In the result, the appeal filed by the assessee stand allowed for statistical purposes in the aforesaid manner. Order pronounced on 28.10.2025. Sd/- (M. BALAGANESH) Sd/- (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Date: 28-10-2025 SRBHATNAGAR Copy forwarded to:- 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar Printed from counselvise.com "