SARASWATI EDUCATIONAL AND CULTURAL RESEARCH SOCIETY,JAIPUR vs. CIT EXEMPTION, JAIPUR

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ITA 138/JPR/2026Status: DisposedITAT Jaipur07 August 2026AY 2025-264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order, directing them to grant registration after verifying the objects and allowing the assessee a fresh opportunity to present evidence. The genuineness of activities can be tested during assessment proceedings, not at the registration stage.

What were the facts?

The assessee society applied for registration under Section 12A of the Income Tax Act. The CIT(E) rejected the application, citing non-registration under the Rajasthan Public Trust Act and questioning the genuineness of activities. The assessee later obtained registration under the Rajasthan Public Trust Act.

What were the issues?

Whether registration under the Rajasthan Public Trust Act is a mandatory pre-condition for Section 12A registration and whether genuineness of activities can be a ground for rejection at the registration stage.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, JAIPUR

Before: Shri T.R. Senthil Kumar & Shri Prakash

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, JAIPUR (PHYSICAL HEARING) Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Prakash, Accountant Member

ITA No: 138/JPR/2026

Saraswati Educational and CIT Exemption, Cultural Research Society Jaipur Shri Ram Nagar, Phulera, Vs Jaipur PAN: AASAS2887E (Appellant) (Respondent)

Assessee Represented: Sh. Yogesh Sharma, Adv. Revenue Represented: Sh. Shravan Kumar Meena, CIT Date of hearing : 05-08-2026 Date of pronouncement : 07-08-2026 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the assessee as against the order dated 24.11.2025 passed by the Commissioner of Income Tax (Exemption), Jaipur denying registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for having not registered under the Rajasthan Public Trust Act, 1959 and genuineness of the activities carried out by the assessee society.

2.

The Grounds of Appeal raised by the assessee are as follows:

I.T.A No. 138/JPR/2026 Page No 2 Saraswati Educational and Cultural Research Society

1.

Because the Ld. CIT(E) erred in law and on facts in rejecting registration u/s 12AB by importing conditions not prescribed under the Income Tax Act, 1961. 2.. Because the Ld. CIT(E) erred in treating registration under Rajasthan Public Trust Act, 1959 as a mandatory pre-condition for registration under section 12AB, which is not envisaged under the Act. 3. Because the Ld. CIT(E) has erred in mechanically relying on the judgment of Honble Supreme Court in New Noble Education Society, without appreciating its context and without examining the appellants charitable activities on merits. 4. Because the finding that the appellants activities are not genuine is perverse, arbitrary and unsupported by facts. 5. Because the Ld. CIT(E) failed to appreciate that all expenses claimed were supported by proper bills and vouchers and actual payments were made and duly recorded in the books of account, and no adverse finding was recorded against any transaction. 6. Because the Ld. CIT(E) ignored material evidences such as activity photographs, beneficiary registers, attendance records and activity reports, which conclusively establish that charitable activities were actually carried out. 7. Because the Ld. CIT(E) erred in ignoring the fact that the appellant maintained a complete donor list, including PAN, address, amount, mode and nature of donation, and no finding of bogus OR accommodation donation has been recorded. 8. Because the impugned order is based purely on assumptions and alleged non-submission, without bringing any adverse OR incriminating material to disprove the charitable nature of activities. 9. Because the Ld. CIT(E) failed to grant a meaningful opportunity to place all evidences on record and passed the order in a hyper-technical manner. 10. Because the Procedural lapse cannot override substantive compliance- Minor procedural deficiencies, if any, cannot override substantive compliance of charitable objects and actual charitable activities.”

3.

At the outset, the ld. Counsel appearing for the assessee submitted that the pursuant to the dismissal order by ld. CIT(E), the assessee society got registered with Assistant Commissioner (First), Devasthan Department, Jaipur on 26.02.2026 and produced copy of the certificate before us. Ld. Counsel further submitted that one more

I.T.A No. 138/JPR/2026 Page No 3 Saraswati Educational and Cultural Research Society

opportunity of hearing be given to the assessee, to file all necessary details before Ld. CIT(E) to prove genuineness of the activities carried out by the assessee society.

4.

Ld. CIT-DR appearing for the Revenue has no objection in setting aside the matter back to the file of Ld. CIT(E) and decide the case on merits.

5.

Recording the submission of rival parties, the impugned order passed Ld. CIT(E) is hereby set aside with a direction to Ld. CIT(E) to give one more opportunity of hearing to the assessee and verify the objects of the assessee society and grant registration u/s 12A of the Act. Ld. CIT(E) also should keep in mind that genuineness of the activities of the society can be tested and verified during the course of assessment proceedings but not at the time of granting registration. Needless to say, the assessee should make use of this final opportunity and produce all the required details, documents before Ld. CIT(E) to pass fresh order.

6.

In the result, the appeal filed by the assessee is hereby allowed for statistical purposes.

Order pronounced in the open court on 07-08-2026

Sd/- Sd/- (PRAKASH) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 07/08/2026

I.T.A No. 138/JPR/2026 Page No 4 Saraswati Educational and Cultural Research Society

*Ganesh Kr., Sr. PS आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT 6. Guard file. By order/आदेश से,

सहायक पंजीकार आयकर अपील�य अ�धकरण, t;iqj

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