The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘G’, heard the appeal filed by Sukoon SP Foundation against the order passed by the Commissioner of Income Tax (Exemptions) [CIT(E)], New Delhi. The appeal, ITA No. 375/DEL/2021, was filed on 05/04/2021, with the final order pronounced on 26/07/2021.
Sukoon SP Foundation, a non-profit organization based in New Delhi, sought registration under sections 12A and 80G of the Income Tax Act, 1961. The registration was crucial for the foundation to avail tax exemptions and receive donations that qualify for tax deductions. However, the CIT(E) rejected the application on 09/03/2021, citing non-compliance with the directions issued and a failure to clearly specify and elaborate the objects of the trust.
The foundation, represented by Advocate Anil Jain, argued that they were unable to comply with the CIT(E)’s directions due to reasons beyond their control. They requested an opportunity to present their case afresh and ensure compliance with the requirements.
The counsel for the assessee, Shri Anil Jain, pleaded that the foundation should be given another opportunity to comply with the CIT(E)’s directions. They assured the tribunal that they would provide all necessary documentation and clarifications regarding the objectives of the trust.
The Departmental Representative, Sh. H. K. Choudhary, CIT DR, supported the findings of the CIT(E), arguing that the rejection was due to the foundation’s failure to meet the requirements set forth for the registration.
The Tribunal, comprising Sh. Kul Bharat, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member, found merit in the arguments presented by the foundation. The tribunal noted that the foundation should be given a fair chance to comply with the CIT(E)’s directions and provide the required information about the trust’s objectives.
The Tribunal quashed the rejection order, remanding the matter back to the file of the CIT(E) for fresh adjudication. The Tribunal directed the foundation to ensure full compliance with the CIT(E)’s requirements and to elaborate on the objectives of the trust comprehensively. The appeal was allowed, enabling the foundation to reapply for registration under sections 12A and 80G of the Income Tax Act, 1961.
The appeal was allowed, and the matter was remanded back to the CIT(E) for fresh consideration. The foundation was instructed to comply with the requirements and provide all necessary details about their objectives.
Order pronounced in the open court on 26/07/2021.
Signed by:
(Kul Bharat) – Judicial Member
(Dr. B. R. R. Kumar) – Accountant Member
Date: 26 July, 2021
Copy forwarded to:
Assistant Registrar, ITAT, New Delhi
ITA No. 375/DEL/2021 – Sukoon SP Foundation vs CIT(E), New Delhi
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