Chardikala Foundation v. Commissioner of Income Tax (Exemptions)

Parties Involved

Facts Summary

The appellant, Chardikala Foundation, filed an application on 30.09.2023 seeking registration under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemptions) issued a questionnaire and subsequently rejected the application on 22.03.2024, stating that the activities of the appellant did not conclusively prove the genuineness of its activities as per its stated objects. The appellant appealed against this order, challenging the rejection without providing an opportunity to meet the objections and without appreciating the replies and documentary evidence. The appellant argued that the rejection was based on the quantum of activities rather than their genuineness, which is not in accordance with the law.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Exemptions) was justified in rejecting the application for registration under section 12A of the Income Tax Act, 1961 without appreciating the replies and documentary evidence filed by the appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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