ADARSH PRAGYA VIDYA MANDIR SAMITI,KOTA vs. DCIT, CIRCLE-2, KOTA

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ITA 830/JPR/2024Status: DisposedITAT Jaipur31 August 20266 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the CIT(E) passed a speaking order and the appellant failed to appear or provide necessary documents despite multiple opportunities. Therefore, the Tribunal found no illegality or perversity in the impugned orders.

What were the facts?

The appellant trust applied for registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) rejected the application on grounds of non-registration under the Rajasthan Public Trust Act, 1959, benefit to interested persons, and lack of genuineness of activities.

What were the issues?

Whether the CIT(E) erred in rejecting the application for registration under Section 12AB without proper satisfaction and show cause notice, and whether the trust's activities were genuine and not for the benefit of interested persons.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 13(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR “B” BENCH, JAIPUR

Before: SMT. ANNAPURNA GUPTA & SHRI KULDIP SINGH

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR “B” BENCH, JAIPUR (PHYSICAL HEARING) BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No: 830 & 831/JPR/2024

Adarsh Pragya Vidya Mandir The DCIT, Samiti Circle-2, Vs 467 Dadabari Extn. Dadabari Kota. Ext. Kota. (Respondent) PAN: AAAAA6054D (Appellant)

Assessee Represented: None Revenue Represented: Sh. Shravan Kumar Meena, CIT Date of hearing : 27-08-2026 Date of pronouncement : 31-08-2026 ORDER PER : KULDIP SINGH, JUDICIAL MEMBER:-

Appellant- Adarsh Pragya Vidya Mandir Samiti by filing aforesaid interconnected appeals, sought to set aside the impugned orders both dated 27.03.2024 passed by Commissioner of Income Tax (Exemption), Jaipur [hereinafter referred to as the ‘CIT(E)’] on the grounds inter- alia that:- ITA No. 830/JPR/2024 “1. That the order passed by ld. Commissioner of Income Tax, Exemption, Jaipur by rejecting application u/s 12AB (1)(b) of the I.T. Act,

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1961 is wrong, unwarranted and bad in law. Kindly direct to register the same.

2.

That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them.

ITA No. 831/JPR/2024 “1. That 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 direct to register the same.

2.

That Ld. CIT(Exemption), Jaipur has erred in law and inf acts of the case in rejecting the provisions registration u/s 12A without issuing separate DIN of the rejection order, which is against the circular & notification issued by the CBDT. So, the same is wrong, unwarranted and bad in law. Kindly direct to register the same.

3.

That the order passed by Ld. Commissioner of Income Tax (Exemption), jaipur by rejecting provisional registration u/s 12A of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same.

4.

That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them.

2.

Briefly stated, facts necessary for consideration and adjudication of the issue at hand are: The appellant trust being into charitable activities sought to get registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) by moving applications before Ld. CIT(E) for provisional registration as well as registration u/s

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12AB of the Act, who has dismissed the same on grounds of non registration under Rajasthan Public Trust Act, 1959; being for the benefit of interested persons and genuineness of the activities & non compliance. 3. Feeling aggrieved with the impugned order passed by the Ld. CIT(E), appellant has come up before the Tribunal by way of filing the present appeal. 4 We have heard Ld. DR for the Revenue and perused the record available on file. 5. The appellant has filed these appeals way back in 31.05.2024, and thereafter 21 opportunities were granted to the appellant to argue its appeals. The appellant has issued power of attorney to pursue these appeals before the Tribunal on 31.05.2024 in favour of Shri R.S. Poonia, Chartered Accountant and Shri Rajat Choudhary, Advocate, who have moved adjournment applications on 06.11.2024 and on 09.01.2025 before the bench, which were allowed and case was further adjourned, thereafter appellant was got served through Ld. DR for the Revenue. Thereafter numerous notices were issued and served upon the appellant, but non appeared on behalf of it. Now Bench has no option except to decide the appeals on merits with the assistance of Ld. DR for the Revenue.

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6.

Ld. CIT(E) dismissed the applications for approval of registration as well as registration u/s 12AB of the Act on three grounds viz non registration under RPT Act, 1959, trust is constituted for the benefit of interested persons and on ground of non genuineness of the activities and non compliance of the appellant. Ld. CIT(E) decided every ground on the basis of material available on record by passing speaking order. While discussing the issue and benefit to the interested persons. It is categorically held that from the perusal of the bank statements hefty payments are given to the trustees, who are covered u/s 13(3) of the Act, the detail of which is extracted as under:- Date Account No. Name Amount 13.06.2022 8370400000429 Vijay Daswani 6600000 29.06.2022 Vijay Daswani 1226000 04.07.2022 Vijay Daswani 2000000 03.03.2022 Anil Kumar Deswani 150000 16.03.2022 Anil Kumar Deswani 2800000

7.

The appellant trust has failed to furnish necessary information to prove the purpose of aforesaid payment made to the trustees and the same were found to be withdrawn. The Ld. CIT(E) by passing speaking order in para 4 of the impugned orders discussed in detail that activities of the appellant trust are not proved to be genuine and in response to the queries raised by Ld. CIT(E) to examine the genuineness of the activities called for documents viz ledger account,

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copy of bill and voucher and copy of bank account, details of rental income etc., but appellant trust has not produced any such documents. At the same time, appellant trust has failed to prove on record if it is registered under RPC Act, 1959. 8. In view of what has been discussed above, we of the considered view that Ld. CIT(E) has passed a speaking order and the appellant trust has not preferred to come before the Tribunal, despite availing numerous opportunity to controvert findings return by Ld. CIT(E). So we find no illegality and perversity in the impugned orders passed by the Ld. CIT(E), hence aforesaid both the appeals filed by the appellant are dismissed. 9. Resultantly, both the appeals filed by the appellant are hereby dismissed.

Order pronounced in the open court on 31-08-2026.

Sd/- Sd/- (ANNAPURNA GUPTA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Jaipur Dated:- 31/08/2026. *Santosh. Copy of the order forwarded to: 1. The Appellant-

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2.

The Respondent- 3. CIT 4. CIT(A) 5. DR, ITAT, Jaipur. 6. Guard File By order,

Asst. Registrar

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