INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 631/DEL/2024 Assessment Year: 2021-22 AND Stay Application No.329Del/2024 ( In ITA No. 631/DEL/2024 )

Assessment Year: 2021-22 Hemkunt Foundations, Vs. Principal Commissioner Plot No.809, Second Floor, Income Tax, RD 42, Sector 42, Central-1, Gurugram, Haryana New Delhi PIN: 122 002 PAN No. AAATH8443C (Appellant) (Respondent)

Assessee by: S/Shri Salil Kapoor, Sumit Lalchandani, Shivam Yadav, Ms. Ananya Kapoor, Tarun Chanana, Utkarsa Kumar Gupta, Advocates Department by: Shri Sunil Agarwal, Special Counsel and Shivansh Pandya, Jr. Standing Counsel, Date of Hearing: 24.03.2025 Date of pronouncement: 20.06.2025 O R D E R PER VIMAL KUMAR, JUDICIAL MEMBER:

The appeal by appellant/assessee is against order dated 28.12.2023 of Learned Principal Commissioner of Income Tax, Central-1, New Delhi (hereinafter referred as “Ld. PCIT”) under Sections 12A read with sections 12AA and 12AB(4) of the Income Tax Act, 1961 (hereinafter referred as “the Act”) through which registration granted to the assessee under Section 12AB of the Act from financial year 2021-22 onwards was cancelled.

2. Brief facts of case are that Hemkunt Foundations is a Public Charitable Trust created by settler Anil Kumar vide trust deed dated 18.02.2010 with the trustees Sh. Irinder Ahluwalia, Natasha Ahluwalia and Kiran Ahluwalia at B- 14, Sarita Vihar, New Delhi. The trust was registered u/s 12A of I.T. Act on 08.04.2011 vide registration No. DIT(E)/12A/2011-12/H-827/15 granted by Director of Income Tax (Exemption), Delhi. It was also registered u/s 80G of 1.T. Act on 08.04.2011 vide registration No. DIT(E)/12A/2011-12/H-827/33 granted by Director of Income Tax (Exemption), Delhi.

3. A survey under Section 133A of Act was conducted by Investigation Wing of Income Tax Department at Delhi on 10.09.2021 at the following two premises of the assessee:

(i) Plot No. 809, 2nd Floor, Rd-42C, Sector-42, Gurugram (Office premise)

(ii) 1325-basement, Sector-43, Gurugram Haryana (Office-cum-Godown premise)

4. Evidences collected during the survey were shared by the Investigation Wing with the Assessing Officer (AO) i.e., DCIT, Central Circle-2, New Delhi as well as Ld. PCIT. From the evidences collected during survey, it is noticed that there have been one or more specified violations during various years. Moreover a reference has also been received from the Assessing Officer vide letter dated 20.12.2022. Thereafter, based on independent application of mind to the evidences, a show cause notice regarding cancellation of registration u/s 12AB (4) r.w.s. 12A and 12AA of the Act was issued on 02.06.2023 with relied on materials/documents and Annexures A to E. The said notice was duly served upon the assessee through the declared e-mail, requiring the assessee to furnish the relevant details along with supporting documentary evidences, with this office on 15.06.2023. Another show cause notice was issued to the assessee on 25.08.2023. The said notice was also duly served upon the assessee. A final show cause notice was issued to the assessee on 16.11.2023 providing final opportunity to the assessee to submit its reply by 30.11.2023 as well as once again enclosing copy of Annexures A to E.

5. In response to above notices, the assessee submitted its Ist reply on 15.06.2023. However, it was observed that the reply was unsigned and this fact was pointed out to the assessee vide notice dated 25.08.2023. Accordingly, the assessee submitted reply on 30.11.2023 in dak counter vide receipt No. 2579. Issues raised vide show-cause notices dated 02.06.2023, 25.08.2023 and 16.11.2023 as well as reply filed by the assessee were duly considered and are discussed by Ld. PCIT, Delhi, vide order dated 28.12.2023 cancelling registration of assessee under Section 12AB from financial year 2021-22 onwards.

6. Being aggrieved, appellant/assessee preferred present appeal w