SHRI CHAVLESHWAR PARSHAVNATH DIGAMBER JAIN ATISHAY THIRTH SHETHRA COMMITE,BHILWARA vs. CIT, EXEMPTION, JAIPUR, JAIPUR

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “A” BENCH, JAIPUR BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI KULDIP SINGH, JUDICIAL MEMBER ITA Nos. 230 and 231/JPR/2026 (Assessment Year:2026-27) Shri Chavleshwar Vs. CIT Parshavnath Digamber Jain Exemption Atishay Thirth Kailash Height Lal Kothi ShethraCommite Tonk Road, Jaipur Atishay Thirth Shethra Committee, Kshetra Kameti, ChainpuraBagudar, Bhilwara �थायीलेखासं./जीआइआरसं./PAN/GIR No:AAHTS 6931 R Appellant .. Respondent Appellant by : Sh. Sunil Porwal, CA (thru V.C.) Respondent by : Sh. Ananad Swaroop, CIT Date of Hearing 04.08.2026 Date of Pronouncement 10.08.2026 O R D E R Per Annapurna Gupta, AM:- Both the appeals relate to the same assessee and are against separate orders passed by the CIT (Exemption) (hereinafter referred to as “Ld. CIT(E)”), both dated 27.01.2026 for rejecting assessee’s

P a g e | 2 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. application seeking registration under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) and approval under Section 80G of the Act respectively. 2. The grant of approval u/s 80G of the Act primarily rests on the availability of registration u/s 12AB of the Act. Since the issues involved in the appeals are interlinked, therefore both the appeals were taken up for hearing together and are being disposed of by this common order. 3. At the outset, it was pointed out, that both the issues of grant of registration u/s 12AB of the Act and approval u/s 80G of the Act have come up in the second round before us. That earlier the issue was adjudicated in assessee’s own case in ITA Nos. 117 and 118/Jodhpur/2023 dated 20.09.2023, wherein the ITAT had set aside both the matters de novo for re-consideration by the Ld. CIT(E). 4. The order of the Ld. CIT(E) reveals that, in the second round also, the assessee’s applications u/s 12A and 80G of the Act were rejected for the reason that, the assessee failed to furnish explanation with respect to the issues noted in the earlier rejection order passed. In the case of grant of approval u/s 80G of the Act, the same was denied also for the reason that the assessee had been denied registration u/s 12A of the Act. 5. In the case of application filed seeking registration u/s 12A of the Act, the order of Ld. CIT (E) reveals that the issues for which the application was rejected in the first round was that the photographs filed by the assessee to prove carrying out of charitable activities by it

P a g e | 3 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. did not reveal the activity being carried out by the assessee society/committee; that no banner of the assessee was noted to be present and the photographs of newspaper cuttings contained the name of some other institution i.e. Chanvleshwar Yuva Vahini. The Ld. CIT(E) concluded therefore, that the photographs furnished by the applicant did not corroborate the fact that the charitable activities were being done by the assessee. In the set aside proceedings, he noted that the assessee had furnished only ledger accounts of expenses claimed and did not furnish any bills or vouchers of expenses claimed, and that the assessee had reiterated the same things as in the original proceedings and furnished same photographs in respect of activities claimed to have carried out. 6. In the proceedings, for grant of approval u/s 80G of the Act, the order of Ld. CIT(E) reveals that the issues for which the approval was denied in the first round was on account of misrepresentation of facts regarding the expenses incurred for the purpose of religious activities; the Ld. CIT( E) in the first round had noted that the assessee had stated to have not incurred any expenses for religious activities but was found to be actually conducting religious activities. 7. In the second round before him, he noted the assessee’s failure to furnish any explanation with respect to the misrepresentation of facts and on the issue of religious institution and accordingly coupled with the fact that assessee had not been granted registration u/s 12AB of the Act, the assessee’s application seeking approval u/s 80G of the Act was rejected.

P a g e | 4 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. 8. Before us, two fold contentions were raised by the ld. Counsel for the assessee:- i) That the order passed u/s 12AB of the Act in the second round was barred by limitation. 9. That on merits the explanation sought by the Ld. CIT(E) regarding the production of books of accounts, vouchers and bills of expenses was a voluminous data and the assessee had sought an opportunity to present the same physically to the Ld. CIT(E), which was not granted by him. His contention was that the assessee was now in a position to offer complete explanation on the issues raised if granted an opportunity of hearing. 10. On the aspect of the order passed u/s 12AB being barred by limitation, the argument of the ld. Counsel for the assessee before us was that, Section 153 sub-Section (3) of the Actrequired the order to be passed by the Ld. CIT(E) in set aside proceedings in pursuance to the order passed by the ITAT u/s 254 of the Act, before the expiry of 9 months from the end of financial year in which the order u/s 254 of the Act is received by the Principal Chief Commissioner or the Chief Commissioner or Principal Commissioner or Commissioner as the case may be. Our attention was drawn to the provisions of Section 153(3) which read as under:- ……… Time limit for completion of assessment, reassessment and recomputation. 153……….. (3) Notwithstanding anything contained in sub-sections (1) 10[, (1A)] and (2), an order of fresh assessment or fresh order under section 92CA, as the case may be, in pursuance of an order under 11[section 250 or] section 254 or section 263 or section 264, setting aside or cancelling an assessment, or an order under section 92CA, as the

P a g e | 5 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. case may be, may be made at any time before the expiry of nine months from the end of the financial year in which the order under 11[section 250 or] section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the 12[Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be] : Provided that where the order under 11[section 250 or] section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the 12[Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be,] on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words "nine months", the words "twelve months" had been substituted. ………

P a g e | 6 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. 14. The ld. Counsel for the assessee also drew our attention to the provisions of Section 12AA of the Act for supporting his contention that the order passed in the present case was barred by limitation. He drew our attention to sub-Section (2) of Section 12AA of the Act which reads as under:- ……….. Procedure for registration. 12AA…………. (2) Every order granting or refusing registration under clause (b) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) or clause (ab) of sub-section (1) of section 12A. …………. 15. Referring to the same, he contended that, the order in the second round ought to have been passed within six months from the end of the month in which the order was passed by the ITAT setting aside the issue to the Ld. CIT(E) for de novo consideration. He contended that the fact that the matter had been restored back by the ITAT to the Ld. CIT(E) for de novo consideration meant that the application noted to be reconsidered afresh by the Ld. CIT(E), and therefore, the provisions of Sub-Section (2) were to be invoked as per which the Ld. CIT(E) was required to pass an order within six months from the end of the month in which the application was received. 16. We are not in agreement with the contention of the ld. Counsel for the assessee, since sub-section (2) of Section 12AA speaks of application received under clause (a) or clause (aa) or clause (ab) of Section 12A(1) of the Act. The said Clauses read as under:- ……….. Conditions for applicability of sections 11 and 12.

P a g e | 7 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. 12A.82 (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:— (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form83 and in the prescribed manner to the Principal Commissioner or Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12AA : Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution,— (i) from the date of the creation of the trust or the establishment of the institution if the Principal Commissioner or Commissioner is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons; (ii) from the 1st day of the financial year in which the application is made, if the Principal Commissioner or Commissioner is not so satisfied: Provided further that the provisions of this clause shall not apply in relation to any application made on or after the 1st day of June, 2007; (aa) the person in receipt of the income has made an application for registration of the trust or institution on or after the 1st day of June, 2007 in the prescribed form and manner to the Principal Commissioner or Commissioner and such trust or institution is registered under section 12AA; (ab) the person in receipt of the income has made an application for registration of the trust or institution, in a case where a trust or an institution has been granted registration under section 12AA or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)], and, subsequently, it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, in the prescribed form and manner, within a period of thirty days from the date of said adoption or modification, to the Principal Commissioner or Commissioner and such trust or institution is registered under section 12AA;

P a g e | 8 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. satisfying him on the issues raised rejecting assessee’s application both u/s 12A and 80G of the Act in the first and for which sufficient opportunity was not granted by the Ld. CIT(E) and that the assessee was in possession of documents to demonstrate his case, noting the same, therefore we consider it fit to restore the issue back to the file of ld. CIT(E) to grant opportunity to the assessee to either physically place all the documents before him if requested for or to take them on record electronically and after giving due opportunity of hearing to the assessee to re-decide the application filed by the assessee both u/s 12A and 80G of the Act. Since this is the third round before the Ld. CIT(E) and a lot of time has elapsed since the initial application was filed 21.09.2022, the ld. CIT(E) is directed to pass the order within four months of the receipt of our order as above. 19. In effect, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the Open Court on 10.08.2026.

Sd/- Sd/- (Kuldip Singh) (Annapurna Gupta) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 10.08.2026 Mittali, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

P a g e | 9 ITA Nos. 230 and 231/JPR/2026 Shri Chavleshwar Parshavnath Digamber Jain Atishay Thirth ShethraCommite. By Order, Asst. Registrar ITAT, Jaipur