Lala Sher Singh Vs PCIT (ITAT Delhi)
Summary: The Delhi Bench of the ITAT allowed the appeals of M/s Lala Sher Singh Memorial Jeevan Trust Society against rejection of its Form 10AB applications for renewal of registration under Section 12A(1)(ac)(ii)/12AB and approval under Section 80G(5) of the Income Tax Act, 1961. The society, engaged in imparting education through Prudence School, had originally obtained registration under Section 12AA on 29.12.2006 and Section 80G approval on 14.01.2011. It was subsequently granted registration for AY 2022-23 to 2026-27 and corresponding Section 80G approval. Following a search and seizure operation dated 24.08.2022 concerning Sudha Gupta, Devendra Gupta and others including the Prudence Group, the PCIT (Central) cancelled the assessee’s registration retrospectively from AY 2011-12 onwards by order dated 30.12.2024. That cancellation was quashed by the Tribunal on 16.06.2025 in ITA No. 10/Del/2025 on jurisdictional grounds, relying upon the decision in M/s Meenakshi Foundation Vs. PCIT, Central-3, Delhi. The Revenue’s appeal against that order was pending before the High Court. Meanwhile, the assessee filed Form 10AB on 25.09.2025 seeking renewal for AY 2027-28 onwards. The PCIT again relied upon material unearthed during the earlier search, including allegations of specified violations and diversion of funds, and rejected registration for AY 2027-28 to 2031-32; Section 80G approval was consequently rejected.
