SCODV Foundation Vs CIT (ITAT Delhi)
Summary: The assessee filed two appeals before the Income Tax Appellate Tribunal (ITAT), Delhi challenging two separate orders dated 29.01.2025 passed by the Commissioner of Income Tax (Exemptions), Delhi [CIT(E)]. The orders had rejected the assessee’s application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 and declined approval under Section 80G of the Act. Since both appeals were interconnected, the Tribunal disposed of them through a common order.
An application for registration under Section 12A(1)(ac)(iii) was filed by the assessee on 04.07.2024 in Form 10AB. During the processing of the application, the CIT(E) issued a questionnaire dated 19.09.2024 seeking various details to support the claim for registration. According to the CIT(E), the assessee did not submit complete information in response to the questionnaire. Another opportunity was granted through a letter dated 09.01.2025 requiring submission of the remaining details by 15.01.2025, with a warning that failure to comply would result in the matter being decided based on available records due to limitation constraints.
Upon reviewing the documents submitted, the CIT(E) identified several discrepancies. These included the absence of donor details, photographs without explanatory details, and the fact that the applicant entity had been incorporated only in April 2024 and therefore did not have audited financial statements. The CIT(E) further observed that the bills and invoices submitted indicated that the applicant had not undertaken activities independently but had merely claimed to have made donations for food expenses (Parshadam). Certain bills were also not in the name of the applicant but in the name of another entity, “Chaitanya Vihar Gaushala.” Additionally, the CIT(E) noted that the applicant’s website indicated that its sponsors resided in different parts of the world, yet no details of such sponsors were provided and no Foreign Contribution Regulation Act (FCRA) registration was shown for receiving foreign funds.
