SHRI JAIN SWETAMBER TERAPNTHI SABHA,NAGAUR vs. CIT EXEMPTION, JAIPUR, JAIPUR

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ITA 196/JODH/2025Status: DisposedITAT Jodhpur07 August 2026AY 2024-254 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order and restored the matter for fresh consideration. The CIT(E) was directed to provide the assessee with a reasonable opportunity of being heard before making a fresh decision.

What were the facts?

The assessee's application for registration under Section 12AA was rejected by the CIT(E) on grounds of non-registration under the Rajasthan Public Trust Act, objects benefiting a particular community, and non-genuineness of activities. The assessee argued these grounds were baseless and submitted that registration under the RPT Act was at an advanced stage.

What were the issues?

Whether the CIT(E) erred in rejecting the Section 12AA registration application without properly considering the assessee's submissions regarding its objects and pending registration under the Rajasthan Public Trust Act.

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

For Appellant: Shri Mahendra Gargieya, Advocate
For Respondent: Ms. Shivani Bansal, CIT-DR

PER: SHRI SAKTIJIT DEY; V.P. :

Present appeal has been filed by the assessee challenging the order dated 27-12-2022 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. 196 /Jodh/2025 (Assessment Year: 2024-25) 2. We have heard the parties and perused the materials on record. As could be seen from the impugned order of learned CIT(E), assessee's application seeking registration was rejected on following grounds:

i. Non-registration under Rajasthan Public Trust Act, 1959. ii. Object for the benefit of particular caste/community. iii. Non-genuineness of the activities.

3.

Assailing the rejection order, learned Authorized Representative (AR) of the assessee submitted, allegation that the objects of the assessee are for benefit of particular caste/community is totally baseless. Drawing our attention to the Trust deed learned counsel submitted that there is nothing in the objects which can be interpreted in a manner to indicate that it is for the benefit if any particular caste or community.

4.

Without prejudice, he submitted that Jainnism cannot be treated as relating to a particular caste/community as it is a way of life. Insofar as allegation of non-genuineness of the activities, learned Authorized Representative submitted, in course of proceedings before the learned CIT(E), detailed submissions were made with documentary evidences. He submitted, learned CIT(E) has failed to appreciate the facts in right perspective. With regard to non-registration under Rajasthan Public Trust Act, 1959 (RPT Act),

3 ITA No. 196 /Jodh/2025 (Assessment Year: 2024-25) learned counsel submitted, the assessee has applied for registration, which is at a very advanced stage as paper publication has already been made. He submitted, assessee is hopeful of receiving the registration within a short period. Thus, he submitted, the matter may be restored back to the learned CIT(E) for considering afresh.

5.

Learned CIT(DR) did not express any objection for restoration of the matter.

6.

Keeping in view the submissions of the parties, we are inclined to set aside the impugned order of learned CIT(E) and restore the matter back to him for considering afresh assessee's application seeking registration under Section 12AA of the Act. Needless to mention, before taking a decision, assessee must be provided with a reasonable opportunity of being heard.

7.

In the result, appeal of the assessee 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. 196 /Jodh/2025 (Assessment Year: 2024-25) 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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