ITAT Allows Fresh Opportunity to Trust Seeking Income Tax Exemption:

The Delhi ITAT granted fresh opportunity to several charitable trusts whose applications for registration under Sections 12A and 80G were rejected by the CIT(E). The Tribunal remanded the matters back for reconsideration after providing proper hearing and examination of evidence.

The Tribunal directed the CIT(E) to reconsider the rejected 12A and 80G applications after granting proper opportunity of hearing to the charitable trusts.

Aishwarya Singh

May 15, 2026

Last update on May 15, 2026

ITAT Allows Fresh Opportunity to Trust Seeking Income Tax Exemption The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) just handed down an important decision in a group of appeals from several charitable trusts and societies. These organisations, like Bab Sarsai Nath Books Bank Welfare Trust, Bhai Kanahaiya Manav Sewa Trust, Animals & Birds Welfare Society, and others from Haryana, went to ITAT after the Commissioner of Income Tax (Exemptions) denied their requests for registration under Section 12A and approval under Section 80G of the Income Tax Act, 1961. [related id="420624."] The reason for rejection is the Commissioner said these trusts didn’t submit enough documents or comply with requirements, even after being notified multiple times. The Revenue argued that because the applicants requested several adjournments, they couldn’t really verify whether the charitable activities were genuine. When the appeal reached ITAT, the trusts’ counsel pushed back. They said replies and adjournment requests were filed as expected. Turns out, some delays happened because their legal team was busy with audits and tax returns. To back this up, the trust brought documentary evidence, providing they had responded to the notice from CIT(E). After looking at everything, ITAT decided that fairness demanded these trust get another chance. So, the Tribunal canceled the earlier rejection orders and sent the cases back to CIT(E) with instructions to properly hear the trusts and give them enough time. In the end, ITAT allowed the appeals but just for statistical purposes.