SHREE PABUJEE RATHORE GHOSHALA SEVA SAMITI,BARMER vs. CIT(EXEMPTION), JAIPUR

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ITA 151/JODH/2025Status: DisposedITAT Jodhpur07 August 20264 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) was not justified in rejecting the application based on general observations of non-genuineness of activities. The primary focus for Section 12AA registration is the charitable nature of the trust's objects, which were found to be established by the submitted materials.

What were the facts?

The assessee, Shree Pabujee Rathore Ghoshala Seva Samiti, applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application citing non-genuineness of activities and issues with compliance, despite the assessee furnishing various documents and obtaining registration under the Rajasthan Public Trust Act.

What were the issues?

Whether the CIT(E) erred in rejecting the Section 12AA registration application based on perceived non-genuineness of activities rather than the charitable nature of the trust's objects. Whether the compliance made by the assessee was substantial enough.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 11,Section 12,Section 13

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

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

Per: Shri Saktijit Dey; V.P. :

This is an appeal by the assessee against order dated 24-12-2024 of learned Commissioner of Income Tax (Exemption) [in short ‘CIT(E)], Jaipur, rejecting assessee's application seeking registration under Section 12AA of the Income Tax Act, 1961 (in short, ‘the Act’).

2 As could be seen from the impugned order of learned CIT(E), the application seeking registration under Section 12AA of the Act was rejected for the following reasons:

2 ITA No. 151 /Jodh/2025 (Assessment Year: NA) 1. Registration under Rajasthan Public Trust Act, 1959.

2.

Non-genuineness of the activities.

3.

With reference to the second ground of rejection, learned CIT(E) has stated that in response to the show-cause notice issued raising various queries, the assessee had made part compliance by submitting copy of trust deed, audit report for the Financial Years (FYs) 2021-22 and 2023-24, and sought adjournment for further compliance. Subsequently, the assessee made further compliance by furnishing details such as, bills of chara purchase, bank statements, vouchers of Gaushala and activities along with paper cuttings, trustee’s details, copy of provisional registration Form No.7 for Rajasthan Public Trust Act, 1959 ( in short ‘RPT’) registration, salary details. However, learned CIT(E) commented that the details furnished were not as per format. He further observed that other details called for were not furnished by the assessee despite opportunity granted. Whereas, learned counsel appearing for the assessee submitted that substantial compliance has been made by the assessee before learned CIT(E). In this context, he drew our attention to the submissions made and documents furnished in course of proceedings before learned CIT(E). He further submitted that the registration under the RPT Act was obtained by the assessee and furnished before learned CIT(E) after the date of hearing but before the order of rejection was passed. However, he submitted, learned CIT(E) has not taken cognizance of the said certificate.

3 ITA No. 151 /Jodh/2025 (Assessment Year: NA) 4. We have considered rival submissions and perused the materials on record. We find that assessee has made substantial compliance to most of the queries raised by learned CIT(E). Even, the assessee had obtained registration under the RPT Act. Still raising certain additional queries, which, in our view are not germane for the purpose of granting registration, learned CIT(E) has rejected assessee's application. It is fairly well settled, at the time of grant of registration under Section 12AA of the Act, the competent authority has to examine whether the objects of the trust of the assessee are charitable purpose or not. Once it is found that the objects are of charitable nature, registration should be granted. So far as genuineness of the activities and violation of conditions of Section 11, 12, and 13 of the Act, those can be examined at the stage of assessment when the assessee claims exemption under Section 11 of the Act. On perusing the materials available on record, we are of the view that the materials furnished by the assessee, including object of the trust, clearly establish the charitable nature of the object. Therefore, without pointing out any deficiency in the documents submitted, learned CIT(E) was not justified in rejecting the application of registration with general observations that activities are non- genuine. The documents furnished by the assessee, prima facie, establish the charitable nature of objects.

5.

In view of the aforesaid, we are inclined to set aside the impugned order of learned CIT(E) with the direction to grant registration under Section 12AA of

4 ITA No. 151 /Jodh/2025 (Assessment Year: NA) the Act, subject to verification of registration granted under Rajasthan Public Trust Act 1959.

6.

In the result, appeal is allowed.

Order pronounced in open court on 07/08/2026.

Sd/- Sd/- (Saktijit Dey) (Makarand Vasant Mahadeokar) Accountant Member Vice President Dated : 07/08/ 2026. AKS/- True Copy

Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File

BY ORDER,

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