IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No.2446/Del/2025 Federation of European Commissioner of Income Business in India, Tax (Exemption), Aiwan-E-Ghalib Complex, Vs. E-2, Civic Centre, Mata Sundari lane, Minto Road, Minto Road, New Delhi-110002 New Delhi-110002 PAN: AAFCF5934N (Appellant) (Respondent)

Appellant by Sh. Amol Sinha, Advocate Sh. Ankit Kumar, Advocate Respondent by Sh. Jitender Singh, CIT-DR Date of Hearing 15/10/2025 Date of Pronouncement 03/12/2025 ORDER PER AVDHESH KUMAR MISHRA, AM This appeal filed by the assessee is directed against the order dated

06.03.2025 of the Commissioner of Income Tax (Exemption), New Delhi [‘CIT(E)’].

2. Vide 7 grounds of appeal, the assessee has challenged rejection of registration under section 12A of the Income Tax Act, 1961 (‘Act’).

3. The relevant facts giving rise to this appeal are that the appellant assessee, a non-profit company registered under section 8 of the Companies Act, 2013, filed its Form No. 10AB of the Income Tax Rules for regular registration under section 12A(1)(ac)(vi) of the Act on 05.08.2024. The appellant assessee has made request for its registration under section 12A(1)(ac)(vi) of the Act as it has been engaged in “Advancement of any other objects of general public utility”, which are charitable activities. However, the Ld. CIT(E), observing as under, not only rejected the request for regular registration under section 12A(1)(ac)(vi) of the Act but also cancelled the provisional registration granted vide order dated 07.03.2024 for AYs 2024-25 to 2026-27:

“5. On perusal of part submission, it is seen that the applicant (FEBI)

is working for the benefit of European Union business community in India. FEBI seeks the opinion of and advocates for the EU business community in India. Thus, the objective for the existence of applicant is to work for the members of EU Business Community in India who are essentially members of the applicant institution. The relevant objects of company are reproduced as under –

“1. To promote commerce in India and to protect and facilitate the interest of the European Union business community in India. By setting up, maintaining and promoting a high level dialogue of policy advocacy between the European Union business community and the Indian public authorities regarding trade policy, ease of doing business, intellectual property right protection and European union investment protection in India.

2. To take representative initiatives on subjects and areas of strategic relevance for the European Union business community in India including highlighting sectors in India in which European businesses could play a constructive role benefiting themselves as well as their Indian counterparts.

3. To secure the interests and wellbeing of the European Union Business community in India with regard to conclusive economic policies, ease of doing business in India, intellectual property rights and investment protection in India

4. To public annually or more frequently as dictated by requirements of the business community a compendium of issues faced by European businesses in the conduct of business in India and a list of opportunities signaled by European businesses that, would serve to deepen the commercial ties between India and European Union at large. etc."

On perusal of the objects of the applicant company, it is evident that it was incorporated for policy advocacy to promote, protect and facilitate the interests of its members in India. Thus, the applicant has not been able to demonstrate how the working for the benefit of its members is a charitable purpose as envisioned under Section 2(15) of the Income Tax Act, 1961.

6. The applicant has claimed to have incurred expenses for charitable activities. It was accordingly requested to submit the details of beneficiaries from the public at large who are not members of FEBI to sub