Omkar Gadi Foundation Vs CIT (Exemptions) (ITAT Delhi)
The appeal by the assessee against the order of the Commissioner of Income Tax (Exemption), Delhi, for A.Y. 2025-26 concerns the rejection of its application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961, and cancellation of provisional registration granted earlier for AY 2025-26 to AY 2027-28. The assessee contended that the CIT(E) erred in rejecting the application without considering the documents submitted. The CIT(E) had observed that the trust did not own the land on which it was constructing a dharamshala for religious purposes and failed to provide property ownership documents. Additionally, the trust did not justify the genuineness of its charitable activities for seeking registration under Section 12A. Consequently, the CIT(E) rejected the application and cancelled the provisional registration.
During the ITAT hearing, the assessee sought to file additional evidence under Rule 29 of the ITAT Rules, citing lack of awareness for not submitting it earlier. The ITAT allowed the filing of this evidence and restored the matter to the file of the CIT(E), directing that the assessee be given a final opportunity to substantiate its claim and decide the issue in accordance with facts and law. The assessee was required to appear before the CIT(E) without seeking adjournment. The appeal was allowed for statistical purposes.
