NEW RISING SKILL FOUNDATION TRUST,SRI GANGANAGAR vs. CIT EXEMPTION, JAIPUR, JAIPUR

Following are the tabulated details of the appeals and the orders appealed: ITA No. Subject matter Order particulars 574/Jodh/2024 Rejection of regular Order dated 19.03.2024, DIN registration under ITBA/EXM/F/EXM45/2023-24/1062950983(1) section 12AB 575/Jodh/2024 Cancellation of Provisional registration dated 21.10.2022 provisional registration cancelled through the same order dated under section 12A 19.03.2024 576/Jodh/2024 Rejection of regular Order dated 19.03.2024, DIN approval under section ITBA/EXM/F/EXM45/2023-24/1062951659(1) 80G(5)(iii) 577/Jodh/2024 Cancellation of Provisional approval dated 21.10.2022 provisional approval cancelled through the same order dated under section 80G 19.03.2024

At the outset, we note that all four appeals are barred by limitation by 52 days. The assessee has filed a common petition seeking condonation of the delay, supported by an affidavit dated 27.02.2025.

In the condonation petition, the assessee has stated that the present appeals were filed on 08.07.2024 against the orders passed by the learned CIT(E), Jaipur, rejecting the applications for registration under

It has been explained that, owing to recent changes in the statutory provisions governing charitable trusts, the assessee was uncertain whether registration under the Rajasthan Public Trust Act, 1959 was mandatory and whether the appropriate legal remedy was to submit fresh applications or to prefer appeals against the impugned orders. The assessee, therefore, obtained legal advice from two to three consultants. Upon being advised that the appropriate remedy was to prefer appeals before the Tribunal, the assessee engaged counsel, prepared the appeal papers and filed the present appeals on 08.07.2024.

The learned DR did not raise any objection to the condonation of delay.

We have considered the reasons stated in the condonation petition and the supporting affidavit. The explanation furnished shows that the delay occurred while the assessee was obtaining appropriate legal advice regarding the requirement of registration under the Rajasthan Public Trust Act, 1959 and the remedy available against the impugned orders. Considering the facts and circumstances of the case, we are

The grounds raised by the assessee read as under:

The learned CIT(E), Jaipur, issued notices calling upon the assessee to furnish the prescribed documents and information relating to its accounts, activities and registration under the Rajasthan Public Trust Act, 1959. The assessee furnished a part reply. According to the learned CIT(E), certain discrepancies remained and the assessee did not furnish the further information and supporting documents called for through the show-cause notice dated 27.02.2024.

By order dated 19.03.2024, the learned CIT(E) rejected the application for regular registration under section 12AB on the grounds that the assessee had not established its registration under the Rajasthan Public Trust Act, 1959 and that, in the absence of the requisite details

By a separate order of the same date, the application for regular approval under section 80G was rejected principally on the grounds that the assessee did not possess a valid registration under section 12A or section 12AB and that the application had not been filed within the prescribed period reckoned from the commencement of its activities. The provisional approval granted on 21.10.2022 was also cancelled. Aggrieved by these actions, the assessee has preferred the present four appeals.

At the time of hearing, the learned AR submitted that the assessee is now duly registered under the Rajasthan Public Trust Act, 1959 and the registration certificate is available on record. It was submitted that this material document was not available before the learned CIT(E) when the impugned orders were passed. Since the absence of registration under the Rajasthan Public Trust Act, 1959 constituted one of the principal reasons for rejection of the applications, the learned AR prayed that the applications for regular registration under section 12AB

The learned DR submitted that the registration now produced by the assessee requires verification by the learned CIT(E). He submitted that the eligibility of the assessee for registration under section 12AB and approval under section 80G should be examined and decided by the learned CIT(E) afresh on merits and in accordance with law.

We have considered the rival submissions and perused the material placed on record. The regular registration under section 12AB was, inter alia, declined on the ground that the assessee had failed to establish its registration under the Rajasthan Public Trust Act, 1959. The connected application under section 80G was also rejected by placing reliance upon the rejection of registration under section 12AB and the alleged failure to comply with the Rajasthan Public Trust Act, 1959.

The learned AR has now produced the registration under the Rajasthan Public Trust Act, 1959 and has submitted that the same was not available before the learned CIT(E). The said registration has a direct bearing upon one of the principal reasons recorded in the impugned orders. Its authenticity, effective date, validity and applicability to the

In these circumstances, and having regard to the concurrence of both sides that the matter requires examination by the learned CIT(E), we consider it just and proper to set aside the impugned orders to the extent they reject the applications for regular registration under section 12AB and regular approval under section 80G. The applications are restored to the file of the learned CIT(E) for fresh adjudication.

The learned CIT(E) shall verify the registration produced by the assessee under the Rajasthan Public Trust Act, 1959. The learned CIT(E) shall thereafter examine the assessee’s eligibility for registration under section 12AB and approval under section 80G afresh, on the basis of the complete material furnished by the assessee and in accordance with the law applicable to the relevant applications.

It is clarified that the remand is not confined merely to the verification of the registration under the Rajasthan Public Trust Act, 1959. The learned CIT(E) shall be at liberty to examine all other statutory requirements arising from the applications, including the completeness

The assessee shall furnish the registration certificate and all other documents and explanations required for adjudication and shall extend full cooperation in the proceedings. The learned CIT(E) shall afford a reasonable opportunity of being heard to the assessee and thereafter pass speaking orders in accordance with law. We have not expressed any opinion on the merits of the applications.

Accordingly, the issues relating to regular registration under section 12AB in ITA No. 574/Jodh/2024 and regular approval under section 80G in ITA No. 576/Jodh/2024 are restored to the file of the learned CIT(E) for fresh adjudication in accordance with law. These appeals are, therefore, allowed for statistical purposes.

Since the matters relating to regular registration and approval have been restored, the consequential issues concerning cancellation of the provisional registration under section 12A and provisional approval