CIT Vs Kush Innovative Foundation (Delhi High Court)
The Delhi High Court examined whether the Income Tax Appellate Tribunal was justified in directing the Commissioner of Income Tax (Exemption) to grant registration to a trust under Sections 12AB and 80G of the Income Tax Act, 1961, or whether the matter should have been remanded to the Commissioner for proper examination. The issue arose after the Commissioner rejected the trust’s application for registration through an order dated 26.06.2024. According to the Commissioner, several notices and queries had been issued to the trust on 22.02.2024 and 08.03.2024 requesting relevant documents and information, but the trust failed to produce the required records despite being given multiple opportunities. In the absence of the necessary documents, the Commissioner concluded that the application could not be approved and rejected the request for registration under Sections 12AB and 80G.
The trust challenged this decision before the Income Tax Appellate Tribunal. In its order dated 12.02.2025, the Tribunal recorded that the trust had produced documents demonstrating the genuineness of its activities. Without remanding the matter to the Commissioner or recording detailed findings regarding the genuineness of the trust’s activities and compliance with other legal requirements, the Tribunal directed the Commissioner to grant registration under Sections 12AB and 80G.
