ITAT remands Naresh Aggarwal Foundation’s 12AB and 80G registration matters

The Delhi Bench ‘A’ of the Income Tax Appellate Tribunal has remanded the applications filed by Naresh Aggarwal Foundation seeking registration under Section 12AB and approval under Section 80G of the Income-tax Act, 1961, to the Commissioner of Income Tax (Exemption), Delhi, for fresh adjudication.

Background and rejection by CIT(E)

The assessee foundation had filed applications in Form 10AB on 30 June 2024 for Assessment Year 2024–25 seeking final registration under Section 12AB and approval under Section 80G. The Commissioner of Income Tax (Exemption) rejected both applications by orders dated 5 December 2024, citing failure on the part of the assessee to respond to notices issued during the proceedings. Consequentially, the provisional registrations earlier granted to the foundation were also cancelled. Aggrieved by the rejection, the foundation approached the Tribunal contending that the denial was based on technical non-compliance without examination of its charitable objects and activities on merits, and that adequate opportunity of hearing had not been afforded.

Tribunal’s findings and directions

Before the Tribunal, the assessee sought one more opportunity to place the necessary material on record and demonstrate the genuineness of its charitable activities. The Revenue did not object to this request. Taking note of these submissions, the Tribunal held that the applications deserved to be reconsidered on merits rather than being rejected mechanically for non-compliance. The Bench accordingly restored both matters to the file of the CIT(E) with directions to adjudicate the applications afresh, after granting reasonable opportunity of hearing and by passing speaking orders in accordance with law. The Tribunal also directed the assessee to remain vigilant and ensure proper compliance during the proceedings.