Consumer Online Foundation Vs Ward Exemption (ITAT Delhi)
Delhi ITAT: 12A Registration & 80G Approval Cannot End With an Ex-Parte Rejection – Trust Gets Fresh Opportunity to Produce Deed and Cure “Irrevocable Clause” Objection
The assessee’s applications in Form 10AD for registration under Section 12A(1)(ac)(ii) and consequential approval under Section 80G were rejected by the CIT(E), Delhi. The rejection was essentially on account of the assessee’s failure to furnish the requisite submissions/evidence during the registration proceedings.
A specific objection of the CIT(E) was that the trust deed did not contain an irrevocability clause. However, the ITAT noticed an important factual deficiency—the copy of the trust deed itself was not available before the Tribunal. The assessee had also failed to comply effectively with the proceedings before the CIT(E).
Despite the earlier non-compliance, the Tribunal considered that outright rejection without another opportunity could result in a “miscarriage of justice.” It therefore decided to give the assessee a further opportunity to properly represent its case before the CIT(E).
Accordingly, the ITAT set aside both the Section 12A registration and Section 80G matters to the CIT(E) for fresh adjudication. The CIT(E) was directed to provide an opportunity of hearing and consider not merely the evidence already on record but also any further evidence that the assessee may choose to furnish during the fresh proceedings.
Key takeaway: Deficiency in the trust deed—such as an alleged absence of an irrevocability clause—need not automatically result in final rejection of 12A registration and 80G approval, particularly where the deed itself and relevant supporting evidence have not been properly examined. The applicant should be afforded an effective opportunity to place the complete material before the CIT(E) for fresh consideration.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. Both the appeals filed by the assessee are directed against the orders both dated 19.03.2026 passed by the CIT(E), Delhi whereby and whereunder in the absence of requisite submissions made by the applicant in support of the application in Form No. 10AD for registration under Section 12A(1)(ac)(ii) of the Act has been rejected. Consequently the approval under Section 80G also stood rejected.
2. The application for registration under Section 12A of the Act has been rejected particularly in the absence of irrevocable clause in the trust deed as the case made out by the revenue, but we also do not find any copy of the trust deed. No compliance, was found to have been made by the assessee before the Ld. CIT(A).
3. However, in order to prevent the miscarriage of justice, we would like to grant a further opportunity to the assessee to represent its case effectively before the Ld. CIT(E).
4. Thus, both these appeals are disposed of by setting aside the issues to the file of the Ld. CIT(E) for fresh adjudication of the same upon granting an opportunity of being heard to the assessee and upon considering the evidences on record or any other evidence which the assessee may choose to file at the time of hearing of the matter.
5. Appeals preferred by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 14/08/2026.
