INDIRA GANDHI PANCHYATI RAJ & GRAMIN VIKAS SANSTHAN,JAIPUR vs. EXEMPTION WARD 1, JAIPUR

IN THE INCOME TAX APPELLATE TRIBUNAL “A”, BENCH, JAIPUR (PHYSICAL HEARING) Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member ITA No: 1197/JPR/2025

Indira Gandhi Panchyati Raj Exemption & Gramin Vikas Sansthan Ward 1 Opp Commerce College Vs Jaipur JLN Marg Jaipur PAN: AAAA19760 Q (Appellant) (Respondent)

Assessee Represented: Sh. Anoop Bhatia, CA Revenue Represented: Sh. Bhanwar Singh Ratanu, CIT Date of hearing : 25-05-2026 Date of pronouncement : 12-08-2026 O R D E R Per T.R. Senthil Kumar, Judicial Member: This appeal is filed by the assessee as against the order dated 12.06.2025 passed by the Commissioner of Income Tax (Exemption), Jaipur (hereinafter referred to as “Ld. CIT(E)”), denying the registration under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 ITA No.1197/JPR/2025 Indira Gandhi Panchyati Raj & Gramin Vikas Sansthan 2 On facts and in circumstances of the case and in law, the Id. CIT (Exemption) has erred in rejecting the final registration due to incomplete Form 10AB, whereas the particulars in Form 10AB were duly and completely filled. Therefore, passing such an order rejecting the final registration application on this basis is completely absurd, unlawful, and against the principles of natural justice, and hence deserves to be set aside. 3 On facts and in circumstances of the case and in law, the ld. CIT (Exemption) has erred in rejecting the final registration under Section 12AB of the Income-tax Act, 1961, on the ground that the assessee trust is not registered under the Rajasthan Public Trust Act, 1959. The assessee trust, being formed under the Rajasthan Societies Registration Act, 1958, and was formed in terms of Cabinet Resolution No. 145/84 dated 01.10.1984 issued by the Government of Rajasthan and accordingly, is not required to get registered under the Rajasthan Public Trust Act, 1959. As such, the rejection of registration on this ground is unjustified, ignores the legal and factual position, and deserves to be quashed. 4 On facts and in circumstances of the case and in law, the ld. CIT(Exemption) has further erred in rejecting the registration application on the ground of Non-Genuineness of Activities. However, the activities of the trust are completely genuine and explainable. Therefore, the denial of registration on this basis is completely irrational, illogical and against the principle of natural justice, hence deserves to be quashed. 5 That the appellant reserves the right to add/alter/ modify any OR all grounds at any time before the hearing.

P a g e | 3 ITA No.1197/JPR/2025 Indira Gandhi Panchyati Raj & Gramin Vikas Sansthan 4. Per contra, ld. Sr. DR appearing for the Revenue supported the order passed by the ld. CIT(E) and brought to our knowledge that ld. CIT(E) rejected the application on the ground of incomplete Form 10AB, non registration under Rajasthan Public Trust Act, 1959 and non-genuineness of activities carried by the society. Therefore, the order passed by ld. CIT(E) does not require any interference.

5.1. Argument of the assessee counsel that belated filing of application and ld. CIT(E) failed to condone the delay are not appearing from the impugned order passed by ld. CIT(E). Whereas incomplete filing of Form 10AB made the ld. CIT(E) not to verify the genuineness of activities carried out by the trust. However, the assessee claims that Form 10AB was filed before ld. CIT(E) with complete details. Further, the assessee society was constituted pursuant to Cabinet Resolution No. 145/84 of the Government of Rajasthan, therefore, registration under Rajasthan Public Trust Act is not mandatory, as per section 77 of RPT Act. For ready reference section 77 of RPT Act is reproduced as follows:-

Sec. 77- Exemption:

P a g e | 4 ITA No.1197/JPR/2025 Indira Gandhi Panchyati Raj & Gramin Vikas Sansthan 1. Nothing contained in this Act shall apply to a public trust administered by any agency action under the control of the State Government or by any local authority. 2. The State Government may exempt, by notification specifying the reasons for such exemption, any public trust or class of public trusts from all or any of the provisions of this Act, subject to such conditions, if any as the State Government may deem fit to impose. 5.2. In our considered view, Ld. CIT(E) has not examined the above provision of RPT Act and genuineness of activities on merits because no material was available before him. Accordingly, the appropriate judicial course is to set aside the impugned order and restore the matter back to the file of Ld. CIT(E) for fresh adjudication, with directions that:

a. the assessee shall furnish all documents contemplated under Rule 17A including note on activities, financial statements and supporting evidence; b. while deciding the issue relating to the Rajasthan Public Trust Act, the CIT(E) shall consider the assessee's specific contention that it is a Government-sponsored society constituted under Cabinet Resolution No.145/84 and pass a reasoned order after considering the applicable legal position; c. adequate opportunity of hearing shall be granted. In the result, the appeal filed by the assessee is allowed for 6. statistical purposes. Order is pronounced in the open Court on 12-08-2026

Sd/- Sd/- (Annapurna Gupta) (T. R. Senthil Kumar) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 12.08.2026 *Ganesh Kumar, Sr. PS Copy forwarded to:

P a g e | 5 ITA No.1197/JPR/2025 Indira Gandhi Panchyati Raj & Gramin Vikas Sansthan 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT By Order, Asst. Registrar ITAT, Jaipur