JALANDHARNATHJI GAU SEVA SAMITI DHANSA,DHANSA, JALORE vs. CIT(EXEMPTION), JAIPUR

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ITA 17/JODH/2025Status: DisposedITAT Jodhpur07 August 202610 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s orders and restored the applications for fresh adjudication. The CIT(E) was directed to examine the newly obtained registration and other supporting documents, and then decide on both the 12AB registration and 80G approval.

What were the facts?

The assessee's applications for registration under section 12AB and approval under section 80G were rejected by the CIT(E) for non-compliance and lack of evidence regarding genuineness of activities. The assessee later obtained registration under the Rajasthan Public Trust Act, 1959, and claimed to have supporting documents.

What were the issues?

Whether the CIT(E) erred in rejecting the applications for 12AB registration and 80G approval without considering subsequent developments and available evidence.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI MAKARAND VASANT MAHADEOKAR, HON’BLE

For Appellant: Shri S.V.S. Khatri, CA
For Respondent: Ms. Shivani Bansal CIT-DR

PER: SHRI MAKARAND VASANT MAHADEOKAR; AM :

These two appeals filed by the assessee are directed against two separate orders, both dated 04.11.2024, passed by the learned Commissioner of Income-tax (Exemption), Jaipur [“CIT(E)”]. By the first order, the learned CIT(E) rejected the assessee’s application for registration under section 12AB of the Income-tax Act, 1961 [“the Act”], and by the second order, the application seeking approval under section 80G of the Act was rejected. Since both the appeals arise from the same

2 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) set of facts and the issue relating to approval under section 80G is consequential to the issue of registration under section 12AB, both the appeals were heard together and are being disposed of by this consolidated order.

2.

The assessee has raised the following grounds:

ITA No. 16/JODH/2025 1. The ld. CIT (E) has erred on facts and in law in rejecting the application filed by the assessee in Form No.10AB seeking registration u/s 12AB under the clause 12A(1)(ac)(iii) by incorrectly holding that no compliance has been made to the notice 02.07.2024 particularly when the assessee furnished the reply on the matter vide the reply dated 03.10.2024. 2. The Ld. CIT (E) has erred on facts and in law in rejecting the application on the ground that assessee is not registered under Rajasthan Public Trust Act, 1959. 3. The ld. CIT (E) has erred on facts and in law in finding that trust has not furnished evidence of genuineness of activities particularly when the assessee furnished the reply on the matter vide the reply dated 03.10.2024 which was not considered i.e. ignored. 4. The Appellant crave liberty to add, amend, alter, modify or delete any of ground/s of appeal on or before its hearing before your honour. ITA No. 17/JODH/2025 1. The ld. CIT (E) has erred on facts and in law in rejecting the application for approval u/s 80G on the ground that Approval u/s 80G cannot be granted without registration u/s 12AB. 2. Whereas the ld. CIT (E) has erred on facts and in law in rejecting the application filed by the assessee in Form No.10AB seeking registration u/s 12AB under the clause 12A(1)(ac)(iii) on following 2.1, 2.2 & 2.3 grounds

3 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) 2.1. The ld. CIT (E) has erred on facts and in law in rejecting the application filed by the assessee in Form No.10AB seeking registration u/s 12AB under the clause 12A(1)(ac)(iii) by incorrectly holding that no compliance has been made to the notice 02.07.2024 particularly when the assessee furnished the reply on the matter vide the reply dated 03.10.2024. 2.2. The Ld. CIT (E) has erred on facts and in law in rejecting the application on the ground that assessee is not registered under Rajasthan Public Trust Act, 1959. 2.3. The ld. CIT (E) has erred on facts and in law in finding that trust has not furnished evidence of genuineness of activities particularly when the assessee furnished the reply on the matter vide the reply dated 03.10.2024 which was not considered i.e. ignored. 3. The Appellant crave liberty to add, amend, alter, modify or delete any of ground/s of appeal on or before its hearing before your honour. 3. The facts, in brief, are that the assessee filed two online applications in Form No. 10AB on 21.05.2024, one seeking registration under section 12AB, read with section 12A(1)(ac)(iii) of the Act, and the other seeking approval under section 80G of the Act.

4.

The application seeking registration under section 12AB was filed by the assessee. The learned CIT(E) issued a notice dated 02.07.2024, followed by further communications dated 18.08.2024, 07.09.2024 and a show-cause notice dated 16.10.2024, requiring the assessee to furnish documents and explanations concerning its activities, accounts and compliance with the applicable law. By order dated 04.11.2024, passed in

4 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) Form No. 10AD the learned CIT(E) rejected the application for registration under section 12AB. The learned CIT(E), inter alia, observed that the assessee was not registered under the Rajasthan Public Trust Act, 1959 and had not furnished complete evidence in support of the genuineness of its activities. The learned CIT(E) further recorded that complete details relating to donations and grants, bills and vouchers, bank transactions, payments to persons specified under section 13(3), records relating to the Gaushala, cattle-feed purchases, salary expenses, construction of the iron shed and boundary wall, cash book, income-tax returns and assets reflected in the balance sheet had not been furnished. On this basis, the learned CIT(E) held that the genuineness of the activities of the assessee had not been established. The learned CIT(E) also recorded that the provisional registration earlier granted to the assessee under section 12A(1)(ac)(iv), dated 27.10.2021, stood cancelled.

5.

The application seeking approval under section 80G was also filed by the assessee. By a separate order dated 04.11.2024, passed in Form No. 10AD the learned CIT(E) rejected the said application. The learned CIT(E) observed that registration under section 12A/12AB, or notification under section 10(23C), was a precondition for approval

5 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) under section 80G. Since the assessee’s application for registration under section 12AB had been rejected by the separate order of even date, the learned CIT(E) held that approval under section 80G could not be granted.

6.

Aggrieved by the orders of learned CIT(E), the assessee is in appeal before us.

7.

Before us, the learned Authorised Representative (AR) submitted that the principal objection of the learned CIT(E) relating to non- registration under the Rajasthan Public Trust Act, 1959 no longer survives. It was submitted that, pursuant to the application made in Form No. 6, the assessee has since been granted registration under the Rajasthan Public Trust Act, 1959 on 27.08.2025, vide Registration Certificate No. 45/2025/Jalore, issued by the Assistant Commissioner, Devasthan Vibhag, Jodhpur.

8.

The learned AR submitted that the assessee had furnished a reply dated 03.10.2024 in response to the notice dated 02.07.2024. It was, however, fairly admitted that a complete response to the show-cause notice dated 16.10.2024 could not be furnished by the stipulated date of 21.10.2024. It was further submitted that the audited financial statements

6 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) had already been furnished. As per the said financial statements, the assessee had disclosed donation receipts of Rs.19,99,239/-, income from khatar of Rs.1,83,920/-, receipts from sale of milk and ghee of Rs.3,08,540/- and Government subsidy of Rs.11,76,000/-.

9.

The learned AR submitted that the bills, vouchers, bank statements, bank book, cash book, details of banking transactions exceeding Rs.10,000/-, records relating to the Gaushala, cattle-feed purchases, salary expenses, construction details, photographs, social- media material and other supporting evidence were available with the assessee, though the same could not be furnished before the learned CIT(E). It was also submitted that no payments had been made to persons specified under section 13(3) of the Act.

10.

The learned AR further submitted that the assessee was not carrying on any independent business activity and that the receipts from the sale of milk, ghee and other incidental activities arose in the course of maintaining the Gaushala. The assets reflected in the balance sheet were stated to have been utilised solely for the objects of the assessee. It was also submitted that the income-tax returns for assessment years 2023-24 and 2024-25 had been duly filed.

7 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) 11. In relation to the appeal under section 80G, the learned AR submitted that the rejection was merely consequential to the rejection of registration under section 12AB. He, therefore, adopted the submissions made in the connected appeal and prayed that registration under section 12AB and approval under section 80G be granted. In the alternative, he submitted that both the matters may be restored to the file of the learned CIT(E) for fresh consideration.

12.

The learned Departmental Representative relied upon the respective orders passed by the learned CIT(E). He submitted that since all the requisite details, documents and supporting evidence were not available before the learned CIT(E), both the matters may be restored to the file of the learned CIT(E) for examination and fresh adjudication in accordance with law.

13.

We have considered the rival submissions and perused the material available on record. The assessee’s application for registration under section 12AB was rejected, inter alia, on the ground that the assessee was not registered under the Rajasthan Public Trust Act, 1959 and had not furnished complete evidence to establish the genuineness of its activities. The application under section 80G was rejected

8 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) consequentially, since the assessee did not possess registration under section 12A/12AB.

14.

The assessee has now placed reliance upon Registration Certificate issued by the Assistant Commissioner, Devasthan Vibhag, Jodhpur, under the Rajasthan Public Trust Act, 1959. The said certificate was issued after the passing of the impugned orders dated 04.11.2024 and, therefore, was admittedly not available for examination before the learned CIT(E).

15.

The submissions of the assessee further show that several documents and details, including bills and vouchers, bank statements, bank book, cash book, particulars of banking transactions, Gaushala records, salary details, construction records, photographs and other evidence concerning the genuineness of the activities, were not furnished before the learned CIT(E). These documents require factual verification and examination by the competent registering authority.

16.

In these circumstances, we do not consider it appropriate to issue a direction for grant of registration under section 12AB or approval under section 80G at this stage. At the same time, the subsequent registration obtained under the Rajasthan Public Trust Act, 1959 and the other

9 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) supporting evidence now relied upon by the assessee deserve to be examined by the learned CIT(E).

17.

We, therefore, set aside both the impugned orders dated 04.11.2024 and restore the applications seeking registration under section 12AB and approval under section 80G to the file of the learned CIT(E) for fresh adjudication.

18.

The learned CIT(E) shall examine the registration certificate issued under the Rajasthan Public Trust Act, 1959 and all other documents, accounts and explanations that may be furnished by the assessee. The learned CIT(E) shall first adjudicate the application for registration under section 12AB and shall thereafter, or simultaneously therewith, decide the application for approval under section 80G, in accordance with law.

19.

Since the order relating to section 12AB also records cancellation of the provisional registration dated 27.10.2021, the learned CIT(E) shall examine and decide that aspect afresh along with the application for regular registration, in accordance with the applicable statutory provisions.

10 ITA No. 16 and 17/Jodh/2025 (Assessment Year: NA) 20. Needless to state, the learned CIT(E) shall afford a reasonable opportunity of being heard to the assessee and shall pass reasoned and speaking orders. The assessee is also directed to furnish all the requisite details, documents and explanations and to cooperate in the proceedings without seeking unnecessary adjournments.

21.

Accordingly, the grounds raised by the assessee in both the appeals are allowed for statistical purposes.

22.

In the result, both the appeals filed by the assessee are allowed for statistical purposes.

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

Sd/- Sd/- (SAKTIJIT DEY) (MAKARAND VASANT MAHADEOKAR) ACCOUNTANT MEMBER VICE PRESIDENT Dated : 07 / 08 / 2026. Pritesh Vaishnav PS 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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