RAVIDAS SAMAJ MAHASABHA SAMITI SRI GANGANAGAR,SRI GANGANAGAR vs. INCOME TAX OFFICER, BIKANER

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ITA 437/JODH/2024Status: DisposedITAT Jodhpur06 August 2026AY 2024-2510 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s orders and restored both applications to the CIT(E)'s file. The assessee was given an opportunity to produce the Rajasthan Public Trust registration certificate and other relevant documents for fresh adjudication.

What were the facts?

The assessee's application for registration under section 12AB was rejected by the CIT(E) primarily because it had not obtained registration under the Rajasthan Public Trust Act, 1959. The application for 80G approval was rejected due to the pending 12AB registration and for being filed beyond the prescribed time.

What were the issues?

Whether the CIT(E) erred in rejecting the 12AB and 80G applications without considering the subsequent obtaining of Rajasthan Public Trust registration and the effect of a new CBDT circular on the limitation period for 80G applications.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G(5)(iii),Section 12A(1)(ac)

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

PER: SHRI MAKARAND VASANT MAHADEOKAR; AM :

These two appeals filed by the assessee arise from two separate orders dated 23.03.2024 passed by the learned Commissioner of Income Tax (Exemption), Jaipur [“CIT(E)”]. Since both the appeals involve interconnected issues and were heard together, they are being disposed of by this common order.

2.

In ITA No. 437/Jodh/2024, the assessee has raised the following grounds of appeal:

2 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) 1. The Ld. CIT(E) has erred in rejecting the application for registration under section 12AB and not considering the proof of application filed for registration under RPT Act. In this case application for registration under Rajasthan Public Trust Act, 1959 has been filed with the Assistant Commissioner Devasthan Vibhag, Hanumangarh on 14.03.2024 and acknowledgement thereof has been filed during the course of proceedings. It can’t be said that the applicant has not tried to get itself registered under Rajasthan Public Trust Act, 1959. Registration under RPT Act is a time taking process. In response to application filed the Devasthan Vibhag has published press release on 21.03.2024 and called for no objections from general public within 60 days from publication. Next date of hearing is 28th May 2024 . As soon as the certificate is received it shall be filed at the time of hearing. Kindly consider request and direct the CIT(E) to grant registration u/s 12AB of the Income Tax Act, 1961. 2. The Ld. CIT(E) has erred in cancelling the Provisional Registration granted under clause (vi) of clause (ac) of sub section (1) of section 12A of the Income Tax Act, 1961 dated 03.08.2022 which was valid up to 31.03.2025 i.e. AY 2025-26. 3. The appellant reserves the right to add, amend, withdraw or alter any ground of appeal before the finalization of said appeal. 3. In ITA No. 464/Jodh/2024, the assessee has raised the following grounds of appeal:

1.

The Ld. CIT(E) has erred in rejecting as Non Maintainable the application filed online on 30.09.2023 in Form No. 10AB seeking approval u/s 80G(5)(iii) of the Income Tax Act, 1961 with the plea that extension of due date for filing Form 10AB for application under clause (iii) of the first proviso to section 80G of the Act has not been extended, so there is delay in filing application after commencement of activities. Now CBDT has extended due date for filing Form 10A/ 10AB up to 30th June 2024 in respect of section 80G also vide

3 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) Circular No. 07/2024 dated 25.04.2024. In view of above application already rejected should be reconsidered and approval u/s 80G(5)(iii) of the Income Tax Act, 1961 should be granted. 2. Application for registration u/s 12AB of the Income Tax Act, 1961 has been rejected in absence of registration under Rajasthan Public Trust Act, 1959. Application for granting registration under RPT Act 1959 is in process. Next date of hearing is 28.05.2024. As soon as the certificate is received it shall be filed at the time of hearing for granting registration u/s 12AB which is necessary for granting approval u/s 80G. Thereafter approval u/s 80G(5)(iii) should be granted. 3. The appellant reserves the right to add, amend, withdraw or alter any ground of appeal before the finalization of said appeal. Facts in brief 4. The relevant facts emerging from the respective impugned orders are that the assessee filed an online application on 13.09.2023 in Form No. 10AB seeking registration under section 12AB of the Income Tax Act, 1961. The learned CIT(E), Jaipur issued a notice dated 02.12.2023 requiring the assessee to furnish the specified documents and explanations by 12.12.2023. The assessee furnished an online reply. Upon examination thereof, the learned CIT(E) noticed certain discrepancies and issued a further show-cause notice dated 07.03.2024 requiring the assessee to furnish the requisite information by 14.03.2024. According to the impugned order, the assessee did not furnish the further details or documents within the stipulated time and, therefore,

4 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) the application was decided on the basis of the material available on record.

5.

The learned CIT(E) examined the requirement of compliance with other applicable laws in terms of section 12AB(1)(b)(i)(B) of the Act. In response to the specific query raised in this regard, the assessee stated that it had applied for registration under the Rajasthan Public Trust Act, 1959 before the Assistant Commissioner, Devasthan Vibhag, Hanumangarh. The learned CIT(E), however, observed that the assessee had not obtained such registration as on the date of passing the order. Accordingly, by order dated 23.03.2024 passed in Form No. 10AD bearing DIN No. ITBA/EXM/F/EXM45/2023-24/1063236936(1), the application for registration under section 12AB was rejected. The learned CIT(E) also invoked section 12AB(1)(b)(ii)(B) of the Act and cancelled the provisional registration granted to the assessee on 03.08.2022 under clause (vi) of section 12A(1)(ac) of the Act.

6.

The assessee had also filed an online application on 30.09.2023 in Form No. 10AB seeking approval under section 80G(5)(iii) of the Act. In connection therewith, the learned CIT(E) issued a notice dated 25.01.2024 requiring the assessee to furnish the specified documents and

5 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) explanations by 05.02.2024. The assessee furnished an online reply. Upon examination of the reply, a further show-cause notice dated 11.03.2024 was issued requiring the assessee to furnish the requisite information on or before 18.03.2024. According to the impugned order, the assessee did not furnish further details within the stipulated time.

7.

The learned CIT(E) rejected the application under section 80G on two grounds. First, registration under section 12A/12AB or notification under section 10(23C) was treated as a prerequisite for grant of approval under section 80G. Since the assessee’s application under section 12AB had been rejected by the separate order dated 23.03.2024, the assessee was held to be ineligible for approval under section 80G. Secondly, the learned CIT(E) observed that the assessee had commenced its activities on 26.09.2021, whereas the application in Form No. 10AB was filed on 30.09.2023. The application was, therefore, treated as having been filed beyond the period prescribed under clause (iii) of the first proviso to section 80G(5) of the Act. Consequently, by order dated 23.03.2024 passed in Form No. 10AD bearing DIN No. ITBA/EXM/F/EXM45/2023-24/1063237369(1), the application was rejected as non-maintainable.

6 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) 8. Aggrieved by the aforesaid orders, the assessee is in appeal before us.

9.

Before us, the learned Authorised Representative submitted that the application for registration under section 12AB was rejected mainly on account of the non-availability of registration under the Rajasthan Public Trust Act, 1959. He submitted that the requisite registration has since been obtained and the registration certificate is now available with the assessee. He, therefore, prayed that the matters be restored to the file of the learned CIT(E) for verification of the registration certificate and fresh adjudication after granting one more opportunity to the assessee.

10.

The learned Departmental Representative relied upon the respective orders passed by the learned CIT(E). He, however, raised no objection to the matters being restored to the file of the learned CIT(E) for verification and fresh adjudication.

11.

We have considered the rival submissions and perused the material available on record. The principal reason for rejection of the assessee’s application under section 12AB was that, as on the date of passing the impugned order, the assessee had not obtained registration under the Rajasthan Public Trust Act, 1959. The learned Authorised

7 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) Representative has submitted before us that the requisite registration has since been obtained and the registration certificate is now available for verification. Admittedly, the said certificate was not available before the learned CIT(E) when the impugned order was passed.

12.

Since the registration certificate now sought to be produced has a direct bearing on the principal reason for rejection of the application, we consider it appropriate, in the interest of substantial justice, to afford the assessee one further opportunity to produce the certificate and other relevant material before the learned CIT(E). Accordingly, the order dated 23.03.2024 passed under section 12AB(1)(b)(ii) of the Act is set aside and the application filed by the assessee in Form No. 10AB is restored to the file of the learned CIT(E). The learned CIT(E) is directed to verify the registration obtained by the assessee under the Rajasthan Public Trust Act, 1959 and thereafter decide the application for registration under section 12AB afresh, in accordance with law. The issue relating to cancellation of the provisional registration dated 03.08.2022 shall also be reconsidered consequentially while deciding the application afresh.

8 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) 13. Insofar as the application under section 80G is concerned, one of the principal reasons for its rejection was the rejection of the assessee’s application for registration under section 12AB. Since the order rejecting the application under section 12AB has been set aside and the matter has been restored to the learned CIT(E), the consequential issue of approval under section 80G also requires fresh examination.

14.

The application under section 80G was also rejected on the ground that it had not been filed within the prescribed time from the commencement of the assessee’s activities. In Ground No. 1, the assessee has specifically relied upon CBDT Circular No. 07/2024 dated 25.04.2024, which was issued subsequent to the impugned order. Since the matter is being restored, the learned CIT(E) shall examine the applicability and effect of the said Circular upon the assessee’s application and decide the question of limitation in accordance with the applicable statutory provisions and circulars.

15.

We, accordingly, set aside the order dated 23.03.2024 rejecting the application under section 80G(5)(iii) and restore the application to the file of the learned CIT(E) for fresh adjudication in accordance with law, after considering the outcome of the proceedings relating to registration

9 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) under section 12AB. The learned CIT(E) shall afford a reasonable opportunity of hearing to the assessee and thereafter pass a speaking order.

16.

The assessee is directed to furnish the registration certificate issued under the Rajasthan Public Trust Act, 1959 and all other requisite documents and explanations before the learned CIT(E), and to cooperate in the proceedings. We make it clear that we have not expressed any opinion on the merits of the applications.

17.

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

Order pronounced in open court on 06 / 08 / 2026.

Sd/- Sd/- (SAKTIJIT DEY) (MAKARAND VASANT MAHADEOKAR) ACCOUNTANT MEMBER VICE PRESIDENT Dated : 06 / 08 / 2026. Pritesh Vaishnav PS

10 ITA No. 437 and 464/Jodh/2024 (Assessment Year: 2024-25) 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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