SOMYA DIVY TRUST,UDAIPUR vs. CIT EXEMPTION, JAIPUR, JAIPUR

ITA 740/JODH/2025Status: DisposedITAT Jodhpur28 August 2026AY 2025-266 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the substantive eligibility should not be denied due to a bona fide error in selecting the category. Factual aspects like the dissolution clause and genuineness of activities require fresh verification.

What were the facts?

The assessee trust applied for registration under section 12AB but selected an incorrect statutory category and failed to provide sufficient evidence for its activities. The CIT(E) rejected the application and cancelled provisional registration.

What were the issues?

Whether an incorrect statutory category selection should lead to rejection of registration, and whether the genuineness of activities and dissolution clause were adequately examined.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(vi),Section 12A(1)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH JODHPUR

For Appellant: Shri Rajendra Jain, Adv. and Smt, CA (Physically)
For Respondent: Ms. Shivani Bansal, CIT-DR (Physically)
Hearing: 06.08.2026Pronounced: 28.08.2026

PER MAKARAND VASANT MAHADEOKAR, AM:

This appeal by the assessee is directed against the order dated 24.06.2025 passed by the learned Commissioner of Income Tax (Exemption), Jaipur [“CIT(E)”], whereby the application for regular registration under section 12AB of the Income-tax Act,

2 Somya Divy Trust 1961 [“the Act”] was rejected and the provisional registration granted on 21.09.2024 was also cancelled.

2.

The assessee has raised ten grounds of appeal. Ground Nos. 1 to 9 challenge the rejection of registration on account of selection of an incorrect statutory category, alleged absence of a dissolution clause and failure to establish the genuin

The order continues below.

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