SRI KANKU PARSHWANATH CHARITABLE TRUST,JALORE vs. CIT (EXEMPTION), JAIPUR

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ITA 175/JODH/2025Status: DisposedITAT Jodhpur07 August 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee had obtained registration under the RPT Act subsequently and had made substantial compliance regarding the genuineness of activities. The CIT(E) had not properly appreciated the submissions and documents.

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application citing non-registration under the Rajasthan Public Trust Act and non-genuineness of activities.

What were the issues?

Whether the CIT(E) correctly rejected the application for registration under Section 12AA based on the grounds of non-registration under the RPT Act and non-genuineness of activities.

Which sections of the Income-tax Act were involved?

Section 12AA

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, Advocate
For Respondent: Ms. Shivani Bansal, CIT-DR

PER: SHRI SAKTIJIT DEY, V.P. :

Present appeal has been filed by the assessee against order dated 23.12.2024 passed by 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 ITA No. 175 /Jodh/2025 (Assessment Year: NA) 2. We have heard the parties and perused the materials on record. On a reading of the impugned order of learned CIT(E), it is noticed that assessee's application seeking registration was rejected on the following grounds:

1.

Non-Registration under Rajasthan Public Trust Act, 1959 (RPT).

2.

Non-genuineness of the activities.

3.

At the time of hearing, learned counsel appearing for the assessee submitted that, in the meanwhile, the assessee had obtained registration under RPT Act. In this context, he drew our attention to registration certificate dated 7.07.2025 kept in paper book. With reference to allegation of non- genuineness of activities, learned counsel submitted that in course of proceedings before learned CIT(E), full compliance was made through submissions dated 3-10-2024 and 3-12-2024. Thus, he submitted, allegation regarding non-genuineness of the activities was wholly substantiated. Thus, he submitted that the matter may be restored back to the CIT(E) for reconsideration of assessee’s application seeking registration.

4.

Learned CIT-DR did not express any objection.

5.

On perusal of materials on record, we find that in response to the queries raised by learned CIT(E), the assessee had made substantial compliance. However, it appears, learned CIT(E) has not properly appreciated

3 ITA No. 175 /Jodh/2025 (Assessment Year: NA) the submissions made and documents filed by the assessee. Instead, he has made a general observation that activities are non-genuine. However, considering the fact that after rejection order was passed, assessee has obtained registration under RPT Act, which was not within the knowledge of learned CIT(E), we are inclined to restore the matter back to him for reconsideration of assessee's application afresh. While doing so, we make it clear, learned CIT(E) should look at the object of the assessee, whether charitable or not, and should not embark upon any roving and fishing inquiry just for the purpose of rejecting the application. Needless to mention, the assessee must be provided a reasonable opportunity of being heard before decision is taken.

6.

In the result, appeal is 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. AKS/- True Copy

4 ITA No. 175 /Jodh/2025 (Assessment Year: NA) 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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