AKHIL BHARTIYA SEERVI CHHATRAWAS TRUST,JAIPUR vs. CIT EXEMPTION,JAIPUR, JAIPUR

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ITA 783/JPR/2026Status: DisposedITAT Jaipur12 August 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(E) rejected the application based on an incorrect assumption of facts, as the assessee had submitted a reply with necessary evidence before the rejection order. Therefore, the matter was remanded back to the CIT(E) for fresh consideration.

What were the facts?

The assessee trust applied for registration under Section 12A(1)(ac)(ii) and approval under Section 80G. The CIT(E) rejected the application for registration, stating the assessee did not reply to a deficiency letter, and consequently rejected the 80G approval.

What were the issues?

Whether the CIT(E) wrongly rejected the application for registration and approval without considering the assessee's submitted reply and evidence.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHE (A

Before: SMT. ANNAPURNA GUPTA & SH. UDAYAN DAS GUPTA

Hearing: 02.07.2026Pronounced: 12.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHE (A),JAIPUR. BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SH. UDAYAN DAS GUPTA, JUDICIAL MEMBER

I.T.A. No.783&784/JPR/2026 Assessment Year: N/A

Akhil Bhartiya Seervi Vs. CIT, (Exemption), Chhatrawas Trust, Plot No. 159- Jaipur. Vstushree Colony Mangyawas, Jaipur, Rajasthan. [PAN: AAGTA5650C] (Respondent) (Appellant)

Appellant by Sh. R. S. Poonia, CA. Respondent by Sh. Ajey Malik, CIT.(Through V.C.) Date of Hearing 02.07.2026 Date of Pronouncement 12.08.2026

ORDER Per: Udayan Das Gupta, JM:

This appeal is filed by the assessee , against the order of the Ld. CIT (E) Jaipur, rejecting the application for registration filed in form 10AB on 29th September, 2025 u/s 12A(1)(ac)(ii) of the Act 61, vide order dated 21/02/2026.

2.

Grounds of appeal taken in form 36 are as follows:

I.T.A. No.783&784/JPR/2026 2 Assessment Year: N/A

“1. That the order passed by Ld. CIT, Exemption, Jaipur by rejecting the application u/s. 12A(1)(ac)(ii) of the I.T. Act, 1961 which is wrong, unwarranted and bad in law. Kindly direct to register the same. 2. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them.” 3. The facts emerging from records are that the trust is registered u/s 12A dated 05/04/2022 for the period AY 2022-23 to AY 2026-27 (and also enjoys exemption u/s 80G vide order dated 06/04/2022). Application for registration u/s 12A (1) (ac) (ii) filed by the assessee in Form 10AB, on 29th September, 2025, has been rejected on the allegation that the assessee is not already registered under clause (i) or (iii) of the first proviso to Sec 12A(1)(ac)(ii), and that the assessee has not replied to the deficiency letter / notice issued on 18/01/2026, thereby resulting in deficiency of factual evidence.

4.

Before the tribunal the Ld AR of the assessee submits that all queries raised by the Ld CIT ( E ) in course of registration process vide notice dated 18th January, 2026, calling for reply on 23rd January, 2026 ( within five working days ) has been replied along with copies of audited financial statements , copy of trust deed, along with copies of earlier registration orders u/s 12A ( and also with copies of 80G renewal ) and written explanations, on 19th February, 2026 complete in all respects but the said documents and evidence has not been taken into cognizance by the Ld

I.T.A. No.783&784/JPR/2026 3 Assessment Year: N/A

CIT ( E ) , even though the same were on record before him on the date of passing of the rejection order on 21st February, 2026 .

5.

The Ld AR further submitted that, no further show cause notices has been issued by the Ld CIT (E) and the application for renewal has been rejected without considering the written response filed along with evidences, even though the same was on record ( by wrongly observing in para – 2 of the order that “ the assessee has not furnished its reply”.

6.

The Ld. DR relied on the order of the Ld. CIT (E).

7.

We have heard the rival submission and considered the materials on record and we find that the Ld CIT (E) has rejected the application for registration on incorrect assumption of facts of alleged noncompliance on the part of the assessee, when the response along with necessary evidences were uploaded in the portal before the date of rejection order, which could not have been ignored on judicial principles.

7.1 As such in the interest of justice we remand the matter back to the Ld. CIT (E) to consider the application for registration afresh and to proceed with the same as per provisions of law considering all the documentary evidences and submissions available in the portal and to allow an opportunity to the assessee to cause a representation make his submission to the satisfaction of the Ld. CIT (E).

8.

In the result the appeal of the assessee is allowed for statistical purpose.

I.T.A. No.783&784/JPR/2026 4 Assessment Year: N/A

ITA - 784 / JP / 2026

9.

This appeal is filed by the assessee against the rejection of the application of approval u/s 80G, which is consequential to rejection of registration u/s 12A of the Act 61.

10.

Our observation in ITA -783/JP/2026 applies mutatis mutandis

10.1 Since we have remanded the matter back relating to registration u/s 12A, we also remand this matter back to the Ld. CIT (E) for consideration of the same afresh in tandem with the application u/s 12AB.

11.

In the result both the appeals are allowed for statistical purpose.

Order pronounced on 12.08.2026 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963. Sd/- Sd/- (ANNAPURNA GUPTA) (Udayan Das Gupta) Accountant Member Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T.

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