Income Tax Appellate Tribunal - Delhi
Zindagi Society,Delhi vs Ito(Exmp) Ward 2(3), Delhi on 23 April, 2026
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES : A : NEW DELHI
BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER
AND
SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER
ITA No.8777/Del/2025
Assessment Year: 2023-24
Zindagi Society, Vs ITO (EXMP),
A-9/24, Vasant Vihar-I, Ward 2(3),
Delhi. New Delhi.
PAN: AAAAZ1691B
(Appellant) (Respondent)
Assessee by : Shri R.S. Singhvi, CA
Shri Rajat Garg, CA &
Shri Satyajit Goel, CA
Revenue by : Shri Rajesh Kumar, CIT-DR
Date of Hearing : 09.03.2026
Date of Pronouncement : 23.04.2026
ORDER
PER MADHUMITA ROY, JM:
The instant appeal filed by the assessee is directed against the order dated 14.10.2025 passed by the Ld. Commissioner of Income-tax (Appeals)-9, Mumbai [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') arising out of the assessment order dated 18.08.2025 passed by the DDIT, CPC, Bengaluru (hereinafter referred to as 'the ld. AO') under Section 154 of the Act for Assessment Year 2023-24.
ITA No.8777/Del/2025
2. The appellant is a registered society formed on 24.09.2013 engaged in carrying out charitable activities in accordance with its objects. The registration was granted under Section 12A of the Act under the new regime operative from AY 022-23 to 2026-27. The appellant before us duly filed its application in Form 10AB for permanent grant of registration in accordance with the provisions of Section 12AB of the Act. It has filed its return of income on 23.11.2023 declaring nil income along with audit report in Form 10BB as the total income/receipt of the trust did not exceed Rs.5 crores and the same is only Rs.25,53,998/- and, therefore, the audit report in Form 10B is not required to be filed. However, on 18.11.2024 the claim under Section 11 of the Act was denied for non-filing of audit report in Form No.10B and income was determined at Rs.19,86,710/- resulting in raising demand of Rs.2,37,130/-. A rectification application was, therefore, filed on 29.07.2025 which stood rejected and further confirmed by the First Appellate Authority. Hence, the instant appeal before us.
3. The Ld. Counsel appearing for the assessee, Shri R.S. Singhvi, CA, submitted before us that the order denying exemption under Section 11 of the Act was solely on the ground of non filing of audit report in Form 10B which is not required as the total receipt of the assessee trust was much below than Rs.5 crores and only Rs.25,53,998/- and, therefore, the assessee has correctly filed the application in Form No.10B fact of which though accepted by the Ld.CIT(A) the said appellate authority denied the claim under Section 11 of the assessee trust 2 ITA No.8777/Del/2025 merely on the ground that the assessee's application for benefit under Section 80G(5) in Form No.10B stood rejected by and under its order dated 07.08.2024 by the CIT(E), Delhi as the same covers AY 2012-13 w.e.f. 05.04.2022 to AY 2024-25 meaning thereby the same has a bearing on assessment year under consideration, i.e., AY 2023-24. The exemption so claimed under Section 11 cannot be allowed which is palpably bad in view of the fact that firstly the said rejection order of exemption dated 05.04.2022 from AY 2022-23 to 2026-27 subsequently was considered in appeal by the Coordinate Bench and the same was restored to the file of the Ld.CIT(E) for fresh decision and consequential order was passed granting registration under Section 12A and 80G of the Act till AY 2031-32 copy whereof has duly been furnished before us in course of the hearing of the matter. Secondly, this particular issue was not under consideration by the CPC in its order of rejection of claim of exemption dated 18.11.2024 under Section 143(1) of the Act and raising this issue suo moto by the Ld.CIT(A) and decision thereon against the assessee so as to justify the order under Section 143(1) dated 18.11.2024 rejecting the claim of exemption under Section 11 of the Act is beyond jurisdiction as the case made out by the Ld. AR found to be acceptable. This particular aspect of the matter has not been controverted by the Ld. DR, neither the fact of acceptance by the Ld.CIT(A) of the wrong opinion of the CPC recorded under Section 143(1) of the order dated 18.11.2024 in rejecting the claim of exemption under Section 11 solely on the ground that the 3 ITA No.8777/Del/2025 assessee has not filed Form No.10B which is not at all applicable in the case in hand as explained by us in the foregoing paragraph.
4. Under these facts and circumstances of the matter, we have further perused the order passed by the Coordinate Bench in the case of the assessee whereby and whereunder the order dated 05.04.2022 rejecting the application preferred by the assessee dated 23.02.2024 in Form No.10AB for registration under Section 80G(5)(iii) of the Act stood quashed and set aside to the file of the Ld.CIT(A) for consideration afresh. We find that while doing so the Coordinate Bench in the assessee's own case in ITA No.3716/Del/2024 vide order dated 19.12.2024, has been pleased to take into consideration the order passed by the ITAT Delhi Bench in the case of Bharat Vikas Parishad Maharana Pratap Nyas vs. CIT(E) in ITA No.6487/Del/2018 dated 06.02.2019 who, in turn, following the judgement passed by the Hon'ble Punjab & Haryana High Court in the case of Sonepat Hindu Educational and Charitable Society vs. CIT (2005) 278 ITR 262 (P&H) held that registration of an institution under Section 12A of the Act is sufficient to of its being established for charitable purposes and, therefore, registration under Section 80G of the Act cannot be denied. The relevant portion of the coordinate Bench decision is reproduced as below:-
"4.1 The applicant relied upon the decision of the Co-ordinate Bench of Tribunal in the case of Bharat Vikas Parishad Maharana Pratap Nyas vs. CIT(E) ITA No.6487/Del/2018 order dated 06.02.2019 which was allowed in favour of the applicant by following the decision of Hon'ble Jurisdictional Punjab and Haryana High Court in the case of Sonepat Hindu Educational and Charitable Society vs. CIT (2005) 278 ITR 262 4 ITA No.8777/Del/2025 (P&H) in which it was held that registration of an institution under section 12A of the Act is sufficient to of its being established for charitable purposes. Thus, registration under section 80G of the Act cannot be denied.
5. Learned Departmental Representative for the Department of Revenue submitted that applicant had failed to file relevant documents in this regard.
6. From examination of record in light of aforesaid rival contentions, it is crystal clear that learned CIT(E) while rejecting the application in order dated 07.08.2024 observed that the applicant had submitted that it is in search of piece of land for educational institution and will finalize the land in coming 6 to 8 months and start constructions. The applicant claims to have entered into memorandum of understanding dated 01.02.2023 with the Government of Uttar Pradesh regarding setting up a world class university in Gautam Buddha Nagar by making investment of Rs.350 crore. Applicant-society has registration dated 05.04.2022 from A.Y. 2022-23 to 2026-27 under section 12AA of the Act.
6.1 As per ratio of judgment of Hon'ble Jurisdictional Punjab and Haryana High Court in the case of Sonepat Hindu Educational and Charitable Society vs. CIT (supra), it is well settled that registration of institution under section 12A of the Act is sufficient for charitable purposes. Thus, registration under section 80G cannot be denied. In view of the above material facts and well settled principle of law, in interest of justice, it is considered expedient to restore the matter to the file of the learned CIT(E) for fresh decision in accordance with law."
5. The Ld. CIT(E) finally granted registration as sought for under Section 12A and 80G of the Act as already observed by us. Moreover, it is an admitted position of law that the claim under Section 80G cannot be said to be relevant whether denial or acceptance so far as claim of exemption under Section 11 is concerned particularly when the same has been enacted only on a misconceived ground of non-filing of audit report in Form No.10B when the assessee admittedly having a total receipt much less than Rs.5 crore and only Rs.25,53,998/- and supposed to file the audit report in Form No.10BB which has 5 ITA No.8777/Del/2025 duly been furnished by the assessee and, therefore, the order impugned is found to be palpably bad in law and, therefore, liable to be quashed.
6. With the aforesaid observation, we, thus quash the impugned order.
7. In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open court on 23.04.2026.
Sd/- Sd/-
(AMITABH SHUKLA) (MADHUMITA ROY)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 23.04.2026.
dk
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asstt. Registrar, ITAT, New Delhi
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