IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.2407/Del/2023 (ASSESSMENT YEAR 2021-22)

ITA No.2406/Del/2023 (ASSESSMENT YEAR 2023-24)

Human Welfare DCIT(Exemptions), Foundation, Circle-1(1), D-3/8, Dawat Nagar Abul Vs. New Delhi.

Fazal Enclave, Jamia Nagar, New Delhi-110025 PAN-AAATH7672R (Appellant) (Respondent)

Assessee by Shri Raghu Ram, Adv.

Department by Shri Surender Pal, CIT-DR Date of Hearing 27/03/2025 Date of Pronouncement 29/04/2025

O R D E R

PER MANISH AGARWAL, AM:

This is an appeal filed by the assessee against the order of Commissioner of Income Tax (Exemptions), New Delhi [CIT(E)] dated 28.06.2023 for cancellation of registration granted u/s 12A and u/s

12AB(4) of the Income Tax Act, 1961 (the Act).

2. Brief facts of the case are that assessee is a charitable society and is registered u/s 12A of the Act in terms of the Registration No.DEL-HR20013-29052009 dated 29.05.2009.

3. Thereafter, in terms of the amendment made in Section 12A w.e.f 01.04.2021, the assessee applied for fresh registration and was granted registration u/s 12A(1)(ac)(i) of the Income Tax Act, 1961 (the Act) with Unique Registration Number AAATH7672RE20084 dated 23.09.2021. Thereafter, the Ld. CIT(E) received a proposal dated 18.07.2022 wherein the AO requested the CIT(E) for cancellation of the registration granted to the assessee on the various grounds.

4. After examination of the proposals so received by the CIT(E), a show cause notice dated 03.10.2022 was issued to the assessee asking it to explain as to why it should not be held that it had committed specified violation as provided in explanation to section 12AB(4) of the Income Tax Act, 1961. The assessee had made detailed submissions dated 27.10.2022 which is reproduced at pages 4 to 8 of the impugned order and after considering this reply of the assessee, the Ld. CIT(E) further raised queries in terms of the notice dated 10.04.2023. The assessee has finally made reply which is reproduced in para 8 at pages 10 to 12 of the order. Thereafter, the Ld. CIT(E) further sought information vide notice dated 09.06.2023. which were duly replied by assessee vide letter dt. 20.06.2023 wherein the assessee rebutted each and every allegation with regard to specified violation of Explanation (d) to Section 12AB(4) of the Act. The said reply is reproduced at pages 14 to 32 of the order. After considering the submissions of the assessee, the Ld. CIT(E)observed that assessee had made specified violation of clause (a), (d) and (e) of explanation to section 12AB(4) and also fo section 13(3) of the Act. Accordingly, the registration granted u/s 12A dated 29.05.2019 is cancelled with effect from AY 2018-19 and further subsequent registration granted u/s 12A(1)(ac)(i) of the Act dated 23.09.2021 is also cancelled w.e.f. Assessment Year 2022-23.

5. Against this order, the assessee has preferred two separate appeals for Asst. Year 2021-22 and Asst. Year 2023-24 wherein the impugned order dated 28.06.2023 canceling the registration granted u/s 12AB(4) of the Act is challenged. As the ld. CIT(E) has by a single order canceled two registrations, first granted u/s 12A with retrospective effect from Asst. Year 2018-19 and further the registration granted u/s 12A(1)(ac)(i) dated 29.09.2021 w.e.f Asst. Year 2022-2023, the assessee in two separate appeals has challenged the retrospective withdrawal of registration as well as cancellation of registration from Asst. Year 2022-23 and onwards. Since, in the separate appeal for Asst. Year 2021-22 in ITA No.2407/Del/2023 both these issues are challenged by the assessee society, therefore, another appeal in ITA No.2406/Del/2023 for Asst. Year 2023-24 challenging same issues being duplicate and thus infructuous accordingly dismissed.

6. In view of the above facts, we proceed to decide the appeal of the assessee for Assessment Year 2021-22 in appeal No.2407/Del/2023.

7. The assessee