VIVEK MANTHANA FOUNDATION,JAIPUR V. CIT(EXEMPTION), DELHI, DELHI

ITA 637/DEL/2025

AI Insights

The case involves the Vivek Manthana Foundation appealing against the decisions of the Commissioner of Income Tax (Exemption), Delhi, which rejected their applications for registration under sections 12A(1)(ac)(iii) and 12AB(1)(b) of the Income Tax Act, 1961. The primary contention was the foundation's failure to provide necessary documentation to substantiate the genuineness of its charitable activities. The tribunal decided to dismiss one appeal and allow the other for statistical purposes, directing a re-evaluation of the foundation's application under section 12A(1)(ac)(iii).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315743 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SINDHU
• Assessee Lawyers: RAJAT CHAUDHARY
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A; 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.637/Del/2025 (ASSESSMENT YEAR-NA) ITA No.638/Del/2025 (ASSESSMENT YEAR-NA) Vivek Manthana Foundation C/o R.S. Poonia, D-82B, Krishna Marg, Siwad Area, Bapu Nagar, Jaipur-302015, Rajsthan. PAN-AAABV1017A Vs . CIT(Exemption), Delhi. (Appellant) (Respondent) Assessee by Shri Rajat Chaudhary, Adv. (Through VC) Department by Sh. Dayainder Singh Sindhu, CIT-DR Date of Hearing 13/05/2025 Date of Pronouncement 13/05/2025 O R D E R [ PER MANISH AGARWAL, AM: Both the appeals are filed by the assessee against the order of the ld. Commissioner of Income Tax (Exemption), Delhi [CIT(E), in short] dated 31.12.2024 rejecting the approval/registration sought u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’). 2 ITA No.637 & 638 /Del/2025 Vivek Manthana Foundation vs. CIT 2. The assessee has filed two separate appeals against the one single order wherein ITA No.637/Del/2025, the assesse has challenged the action of the Ld. CIT(E) for rejection of approval/registration u/s 12A of the Act and in ITA No.638/De/2025 the assessee has challenged the action of Ld. CIT(E) for rejecting the application for registration u/s 12AB(1)(b) of the Act. 3. From the perusal of the order, it is seen that the assessee has filed Form 10B for granting registration u/s 12A(1)(ac)(iii) which stood rejected, therefore, the ITA No.637/Del/2025 challenging the order u/s 12A is not born out from the order of Ld. CIT(E) and, thus, the same is hereby dismissed. 4. With regard to ITA No.638/Del/2025 arising out of the order of Ld. CIT(E), it is seen that the Ld. CIT(E) has denied the registration u/s 12A(1)(ac)(iii) as the assessee has failed to provide the details as sought for time to time and thus, the Ld. CIT(E) was the opinion that the assessee has failed to substantiate the genuineness of its activity. 5. Before us, the Ld. AR of the assessee submits that the assessee though was not able to file the details before the Ld. CIT(E), however, he requested that assessee may be granted one more opportunities to represent its case before the Ld. CIT(E) to file the documentary evidences as required by Ld. CIT(E). 6. In reply, the Ld. CIT-DR supported the orders of Ld. CIT(E) and requested for the confirmation of the same. 3 ITA No.637 & 638 /Del/2025 Vivek Manthana Foundation vs. CIT 7. We have heard the rival submissions and from the perusal of the order of Ld. CIT(E), it is seen that the Ld. CIT(E) on various occasions asked the assessee to file the details of bills and vouchers of the expenses, details of donations received, details of beneficiaries of charitable activities, details of employees to whom salary paid in order to establish the genuineness of its activity being carried out for charitable purposes. However, the assessee has failed to file any such information before the Ld. CIT(E), thus, the CIT(E) has denied the registration u/s 12A(1)(ac)(iii) of the Act. 8. Under these facts and circumstances of the case and in the interest of natural justice, the matter is restored back to the file of Ld. CIT(E) for fresh adjudication on merits in accordance with law after providing reasonable opportunities to the assessee. The Assesse is also directed to file the necessary evidences before the Ld. CIT(E) in order to establish the genuineness of its activity. With these directions appeal of the assessee is allowed for statistical purposes. 9. In the result, ITA 637/Del/2025 as dismissed and 638/Del/2025 is allowed for statistical purposes. Order pronounced in the open court on 13.05.2025. Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 16.05.2025 PK/Ps 4 ITA No.637 & 638 /Del/2025 Vivek Manthana Foundation vs. CIT Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "