Dharmarth Education Centre Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has remanded a case involving Dharmarth Education Centre back to the Commissioner of Income Tax (Exemption) [CIT(E)] for a fresh review of its application for Section 12A(1)(ac)(iii) registration under the Income Tax Act, 1961. The educational center had appealed against the CIT(E)’s order dated August 31, 2023, which rejected its application on the grounds of insufficient proof of charitable activities.
According to the assessee, they had furnished “sufficient documentary evidences” to establish their charitable operations during the proceedings before the CIT(E). However, the CIT(E) dismissed the application, stating that the appellant failed to submit necessary bills, vouchers, and supporting documents to substantiate its claim of carrying out charitable activities. The assessee contended that the impugned order was “bad in law” and based on a “mere assumption” that no charitable activities were conducted, without specifically pointing out any missing documents. They maintained that their activities aligned with the trust’s objects and were supported by documentation, fulfilling all conditions for registration.
During the ITAT hearing, despite the assessee’s representative being absent, the Tribunal decided to proceed based on the available records and the Departmental Representative’s arguments. The ITAT noted the conflicting claims: the CIT(E) stated a lack of documents, while the assessee asserted that all documents were provided.
