DHAROHAR CHARITABLE FOUNDATION,UDAIPUR vs. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR

ITA 120/JODH/2025Status: DisposedITAT Jodhpur20 August 2026AY 2024-2523 pages
AI SummaryRemanded

What were the facts?

The assessee, a Section 8 company, applied for registration under Section 12AB and approval under Section 80G. The CIT(E) rejected both applications, citing issues with the company's Articles of Association, the nature of its activities, and alleged lack of evidence for genuineness.

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in converting registration proceedings into assessment proceedings and that the genuineness of activities should be assessed, not profit-making. Amendments to the Articles of Association, made after the CIT(E)'s order, addressed concerns about profit distribution and asset distribution upon winding up.

What were the issues?

Whether the CIT(E) correctly rejected the application for registration under Section 12AB and approval under Section 80G based on the company's Articles of Association and the nature of its activities. Whether the CIT(E) erred by treating the registration application as an assessment proceeding.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G,Section 8,Section 11,Section 12,Section 13,Section 2(15),Section 194C,Section 194J

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH JODHPUR

Before: SHRI SAKTIJIT DEY & SHRI MAKARAND VASANT MAHADEOKAR

For Appellant: Shri Amit Kothari, CA (Physically)
For Respondent: Ms. Shivani Bansal, CIT-DR (Physically)
Hearing: 04.08.2026Pronounced: 20.08.2026

PER MAKARAND VASANT MAHADEOKAR, AM:

These two appeals preferred by the assessee arise from two separate orders dated 30.12.2024 passed by the learned Commissioner of Income-tax (Exemption), Jaipur [hereinafter referred to as “the CIT(E)”], rejecting the assessee’s application for registration under section 12AB of the Income-tax Act, 1961 [hereinafter referred to as “the Act”] and its application for approval under section 80G of the Act. Since both appeals pertain to the same assessee, arise from a common set of facts and involve interconnected issues, they wer

The order continues below.

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