Case Law Details
Foundation for Computing Education in India Vs CIT (Exemption) (ITAT Delhi)
The appeals before the Tribunal arose from two separate orders dated 05.01.2026 passed by the Commissioner of Income Tax (Exemption), Delhi, rejecting the assessee’s applications for registration under Section 12A(i)(ac)(iii) and for approval under Section 80G(5) of the Income-tax Act, 1961. Since both appeals involved common issues, they were disposed of through a consolidated order.
The assessee did not appear during the proceedings, and the Tribunal proceeded to hear the matter ex-parte with the assistance of the Departmental Representative. It was contended that the applications had been rejected without granting proper opportunity of being heard, thereby violating the principles of natural justice. The Departmental Representative did not object to remanding the matter for fresh adjudication.
The Tribunal observed that the rejection by the Commissioner was based on the assessee’s failure to furnish details and information sought through notices, particularly relating to the genuineness of activities, charitable objects, and commencement of activities. However, the Tribunal held that adequate opportunity should have been provided to the assessee to present its case and comply with the requirements.
In view of this, and in the interest of upholding the principles of natural justice, the Tribunal set aside both impugned orders and remanded the matter back to the Commissioner for fresh adjudication. The Commissioner was directed to reconsider the applications in accordance with law after providing reasonable opportunity of being heard to the assessee.
The assessee was also directed to actively participate in the proceedings and furnish the necessary documents and evidence as required by the authority. Accordingly, both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
These two appeals by the assessee are directed against the two separate orders of Ld. Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as the ‘Ld. CIT(E)] both dated 05.01.2026 rejecting the respective applications filed by the assessee for registration under section 12A(i)(ac)(iii) of the Income-tax Act, 1961, (hereinafter referred to as the ‘Act’) and for grant of approval under clause (iii) of first proviso to section 80G(5) of the Act (hereinafter referred to as the ‘Act’). Since common issues are involved in both the appeals, the same are being disposed of by way of this common order for the sake of convenience and brevity.
2. None represented the assessee therefore we decided to hear the appeals ex-parte with the assistance of the ld. DR. At the outset, the ld. DR pointed out that the assessee has taken a ground in both the appeals that the ld. CIT(E) had rejected the applications of the assessee for registration under section 12A(i)(ac)(iii) of the Act and for grant of approval under clause (iii) of first proviso to section 80G(5) of the Act, without giving proper notice or following principles of natural justice. The ld. DR did not raise any serious objection in setting aside these two appeals for a fresh adjudication by the Ld. CIT(E).
3. We find that the ld. CIT(E) rejected both the above applications on the ground that the assessee had failed to file details / information required by the notices issued to the assessee in support of the genuineness of the activities, charitable objects and commencements of the activities. We are of the view that the ld. CIT(E) should have given adequate opportunity to the assessee to explain its case. We therefore, in the interest of the principle of natural justice, set-aside both the impugned orders of the Ld. CIT(E) rejecting the respective applications of the assessee for registration under section 12A(i)(ac)(iii) of the Act and for grant of approval under clause (iii) of first proviso to section 80G(5) of the Act, to the file of the Ld. CIT(E) for afresh adjudication, after giving reasonable opportunity of being heard to the assessee and in accordance with law. The assessee is also directed to participate and furnish evidences/documents as and when required by the Ld. CIT(E).
4. In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 27.03.2026.
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