INNOCENT STREET FRIENDS SOCIETY,UDAIPUR vs. CIT (EXEMPTION), JAIPUR

None appeared on behalf of the assessee when the appeals were called for hearing. We have, however, proceeded to dispose of the appeals on the basis of the material available on record and after hearing the learned Departmental Representative.

On perusal of the impugned orders, we find that the principal reason which weighed with the learned CIT(E) while rejecting the application for registration under section 12AB was that the assessee was not registered under the Rajasthan Public Trust Act, 1959. The learned CIT(E) consequently rejected the application and also cancelled the provisional registration earlier granted to the assessee. In the proceedings under section 80G, the learned CIT(E), inter alia, observed that registration under section 12A/12AB was a prerequisite for grant of approval under section 80G and, since the application under section 12AB had been rejected, the application under section 80G was also liable to be rejected. The learned CIT(E) additionally observed that the assessee had commenced its activities on 24.12.2022, whereas Form No. 10AB was filed on 30.09.2024 and, therefore, according to him, the

We have considered the matter. From the impugned orders, it is evident that the application for registration has substantially been rejected on account of non-availability of registration under the Rajasthan Public Trust Act, 1959. Consequently, the other relevant aspects concerning the objects, genuineness of activities and fulfilment of the statutory conditions have not been examined comprehensively on merits. In these circumstances, we are of the considered view that the ends of justice would be adequately met by restoring the matter to the file of the learned CIT(E) for fresh consideration.

Accordingly, the order passed in the proceedings under section 12AB is set aside and the matter is restored to the file of the learned CIT(E). The assessee shall be at liberty to place on record the registration under the Rajasthan Public Trust Act, 1959, if obtained, or such other material as may be relevant to explain its status under the said enactment, together with all documents and explanations necessary for examination of its application. The learned CIT(E) shall examine the application afresh on its merits and in accordance with law, after

Insofar as the application under section 80G(5) is concerned, its rejection is, to a substantial extent, consequential to the rejection of registration under section 12AB. Therefore, once the proceedings relating to registration under section 12AB are restored for fresh adjudication, we consider it appropriate to restore the proceedings under section 80G(5) also to the file of the learned CIT(E) for consideration afresh in accordance with the ultimate decision in the registration proceedings.

We are conscious that the learned CIT(E) has additionally rejected the application under section 80G on the ground of the time limit prescribed under clause (iii) of the first proviso to section 80G(5), having regard to the stated date of commencement of activities and the date of filing of Form No. 10AB. This aspect shall also be examined afresh by the learned CIT(E) in accordance with the statutory provisions applicable to the relevant period and the applicable circulars, extensions and relaxations issued by the CBDT from time to time. In this regard, we

The learned Departmental Representative fairly raised no objection to restoration of both the matters to the file of the learned CIT(E). Accordingly, the impugned orders are set aside and both applications are restored to the file of the learned CIT(E) for fresh adjudication in terms indicated above. The assessee shall cooperate in

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