ROTARY CLUB OF JODHPUR PADMINI,JODHPUR vs. CIT(EXEMPTION),, JAIPUR

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR

BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, HON’BLE JUDICIAL MEMBER ITA No. 121 and 122/Jodh/2024 (Assessment Year 2024-25) Rotary Club of Jodhpur Padmini CIT, Exemption, Jaipur 8, Tractor Association, Pal Road, Near Hans Om Sai Building Jodhpur-342008 PAN No. AAETR1428H Assessee by Shri S.V.S. Khatri, CA (Physical) Revenue by Shri Ajey Malik, CIT-DR (Virtually) Date of Hearing 05 / 05 / 2026 Date of Pronouncement 13 / 05 / 2026 ORDER DR. MITHA LAL MEENA, A.M.: These appeals are filed by the assessee against the separate order of the Commissioner Income Tax Exemption, Jaipur [hereinafter referred to as the CIT(E)] challenging therein rejection of appellant’s application for registration under Section 12AB of the Act and consequential approval under Section 80G of the Income Tax Act, 1961.

2 ITA No. 121 and 122/Jodh/2024 (Assessment Year 2024-25) 12AB and consequential approval under Section 80G of the IT Act, 1961 on the ground of non-existence of the Trust and no activity carried out by it. The AR has submitted that appellant trust has carried out activities in pursuing to its objects regarding Vriksharopan, Livelihood, Medical Aid during COVID-19, Education Aid etc, out of the total donation and income of the trust during the relevant financial year which proves that trust was very much in existence and carried out activities. The AR has further submitted that the expense of Rs. 1,25,000/- towards Education Aid during the financial year 2021-22 was made out of the donation of Rs. 1,25,000/- received from existing registered trust. He further submitted that Inspector visited the wrong place against the trust office premises which was in fact not the trust office location and the conclusion drawn based on such report of inspector that the trust was not in existence is not justified. The AR has filed copy of income and expenditure statement (APB Page No. 11) to support the fact regarding carrying out of activities by the appellant trust. He pleaded that the appellant trust may be allowed one more opportunity before the Ld. CIT(E) to prove its claim in view of the natural justice.

3 ITA No. 121 and 122/Jodh/2024 (Assessment Year 2024-25) 3. The Ld. CIT(E) on the other hand placed reliance on the impugned order. He has submitted that the inspector has physically visited the office as per the address given in the application filed for registration. However, on the given address no such trust in the name of the appellant was found in existence and the said premises were reported as residential house owned by Shri Sunil Sancheti, Husband of trustee Smt. Sandeepa Sancheti. He contended that Ld. CIT(E) has raised various objections which the appellant failed to comply during the course of verification and examination of application for the purpose of registration under Section 12AB of the IT Act. He pleaded that the order of the Ld. CIT(E) may be sustained.

4 ITA No. 121 and 122/Jodh/2024 (Assessment Year 2024-25) 5. In our view, the Ld. CIT(E)’s observation regarding non activity of the trust and its non-existence without taking rebuttal of the appellant on the report of the inspector is against the principles of natural justice. The assessee must have been given an opportunity to rebut the allegation levelled against him and after addressing the contentions of the appellant trust, the Ld. CIT(E) ought to have controverted the claim of the appellant trust. Considering the peculiar facts of the case, we are of the considered view that the appellant assessee is deserved to be given one more opportunity of being heard before the Ld. CIT(E) for examination of its application for registration under Section 12AB and approval under Section 80G of the Act. We, therefore, consider it deem appropriate to restored the matter back to the file of the Ld. CIT(E) to examine the application of the assessee filed for registration under Section 12AB and approval under Section 80G of the Act afresh after granting adequate opportunity of being heard to the appellant trust and considering the material evidence filed by the appellant assessee in the course of fresh proceedings. No doubt the appellant trust shall cooperate in the De Novo verification and examination proceedings before the Ld. CIT(E).

5 ITA No. 121 and 122/Jodh/2024 (Assessment Year 2024-25) 6. Accordingly, the issue of registration under Section 12AB and approval under Section 80G of the Act is remanded back to the file of the Ld. CIT(E) to adjudicate afresh in accordance with law.

Order pronounced on 13 / 05 / 2026 in the open court.

Sd/- Sd/- (SUDHIR PAREEK) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated : 13 / 05 / 2026. Pritesh Vaishnav PS True copy Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File

BY ORDER,