SHRI CHATURADASJI MAHARAJ MANDIR VIKAS SAMITI BUTATI,JAIPUR vs. CIT EXEMPTION, JAIPUR, JAIPUR

The grounds of appeal raised by the assessee are reproduced verbatim as under:

The grounds of appeal raised by the assessee are reproduced verbatim as under: 1. That the Ld. CIT (Exemption), Jaipur has erred in law and in facts of the case by neither recording the independent satisfaction for rejection of provisional registration and nor issued Show Cause Notice for rejection of provisional registration u/s. 12A of the I.T. Act 1961 which is wrong, unwarranted and bad in Law. Kindly restore the same. 2. That the Ld. CIT (Exemption), Jaipur has erred in law and in facts of the case in rejecting the provisional registration u/s. 12A without issuing separate DIN of

The assessee filed an online application in Form No. 10AB on 11.03.2024 seeking registration under section 12AB of the Act. The CIT(E) recorded that an earlier application of the assessee for registration under section 12A had been rejected vide order dated 15.09.2020 on the grounds relating to the objects of the trust/society and genuineness of its activities.

During the proceedings on the application filed in Form No. 10AB, the CIT(E) issued a notice requiring the assessee to furnish the specified documents and explanations by 21.06.2024. According to the impugned order, there was no compliance with the said notice. A reminder bearing dated 28.07.2024 was thereafter issued, requiring the assessee to furnish the requisite information by 07.08.2024. The CIT(E) recorded that there was no compliance with this notice as well.

The CIT(E) observed that, in terms of section 12AB(1)(b)(i) of the Act, he was required to satisfy himself about the genuineness of the activities of the assessee and its compliance with the requirements of any other law which were material for achieving its objects. The assessee was, therefore, called upon to state whether it was registered under the Rajasthan Public Trust Act, 1959 and, if not, to explain why the absence of such registration should not be regarded as non-compliance with section 12AB(1)(b)(i)(B) of the Act read with section 17 of the Rajasthan Public Trust Act, 1959.

The CIT(E) further recorded that the assessee had been called upon to furnish, inter alia, the list of donors, annual accounts for the preceding three years, bills and vouchers relating to expenses, photographs of its activities, particulars of its social-media presence and digital footprint, and details of its bank accounts for the preceding three years. According to the CIT(E), despite the opportunities afforded, these details were not furnished. The CIT(E), therefore, held that the genuineness of the activities carried on by the assessee could not be verified.

On the aforesaid grounds, namely, the absence of registration under the Rajasthan Public Trust Act, 1959 and the failure to establish the genuineness of the activities due to non-compliance, the CIT(E), by the impugned order dated 12.09.2024, rejected the assessee’s application

Before us, the learned Authorised Representative submitted that the registration under the Rajasthan Public Trust Act, 1959 was not available with the assessee at the time of the proceedings before the CIT(E). It was submitted that the said registration has since become available. The learned AR contended that the principal objection recorded in the impugned order can now be examined on the basis of the registration certificate presently available with the assessee. He, therefore, requested that the impugned order be set aside and the entire matter be restored to the file of the CIT(E) for fresh adjudication after taking the registration certificate and other supporting documents on record.

The learned Departmental Representative relied upon the impugned order passed by the CIT(E). He, however, did not raise any

We have considered the rival submissions and perused the material available on record. The rejection of the application for regular registration was founded, inter alia, upon the absence of registration under the Rajasthan Public Trust Act, 1959. The cancellation of the provisional registration was also made through the same impugned order. The learned AR has now stated before us that the registration under the Rajasthan Public Trust Act, 1959, which was not available during the proceedings before the CIT(E), has since become available. The learned DR has not disputed the request that the matter may be restored to the CIT(E) for verification and fresh adjudication.

The subsequent availability of the registration under the Rajasthan Public Trust Act, 1959 has a direct bearing upon one of the principal reasons recorded by the CIT(E) for rejecting the application. The said registration certificate and its legal and factual effect require examination by the CIT(E). Further, the CIT(E) had also rejected the application on the ground that, due to non-compliance, the genuineness of the assessee’s activities could not be verified. Such satisfaction has to

Accordingly, the impugned order dated 12.09.2024 is set aside and the assessee’s application in Form No. 10AB dated 11.03.2024 is restored to the file of the CIT(E) for fresh adjudication in accordance with law. The CIT(E) shall take on record and verify the registration certificate issued under the Rajasthan Public Trust Act, 1959 and shall also examine the objects and genuineness of the activities of the assessee on the basis of the accounts, documents and explanations that may be furnished.

Since the rejection of the application for regular registration and the cancellation of the provisional registration form part of the same impugned order, both issues shall be considered afresh together. All contentions of the assessee, including those concerning the cancellation of provisional registration, absence of a separate show-cause notice and separate DIN, are kept open for adjudication by the CIT(E) in accordance with law.

We clarify that we have not expressed any opinion on the merits of the assessee’s eligibility for registration under section 12AB of the Act or on the validity of the cancellation of its provisional registration.

In the result, ITA No. 889/Jodh/2024 and ITA No. 894/Jodh/2024 filed by the assessee are allowed for statistical purposes.