GRAMIN YUVA VIKAS SANSTHAN ,SAINTHAL vs. CIT EXEMPTION, JAIPUR, KAILASH HEIGHTS

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ITA 555/JPR/2026Status: DisposedITAT Jaipur25 August 2026AY 2026-276 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the orders of the CIT(E) and restored the matters for fresh consideration. The CIT(E) was directed to decide the applications afresh after affording the assessee an opportunity of being heard and considering all documents, including the RPT Act registration and relevant CBDT circular.

What were the facts?

The assessee's applications for registration under section 12AB and approval under section 80G were rejected by the CIT(E) for being incomplete and for not being registered under the Rajasthan Public Trusts Act. The assessee obtained the RPT Act registration after the rejection order and argued that documents were filed and an effective hearing was not provided.

What were the issues?

Whether the CIT(E) erred in rejecting the applications for registration and approval due to incomplete documentation and lack of RPT Act registration, and whether the assessee was denied a proper opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, JAIPUR

Before: Shri T.R. Senthil Kumar & Shri Prakash

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, JAIPUR (PHYSICAL HEARING) Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Prakash, Accountant Member ITA Nos: 554 & 555/JPR/2026

Gramin Vikas Yuva CIT Exemption, Sansthan Jaipur 01, Sainthal Vill. Vs Sainthal, Dausa PAN: AAATG4483H (Respondent) (Appellant) Assessee Represented: Sh. Shailesh Mantri, CA Revenue Represented: Ms. Ananad Swaroop, CIT Date of hearing : 20-08-2026 Date of pronouncement : 25-08-2026 आदेश/ORDER PER : PRAKASH, ACCOUNTANT MEMBER:-

1.

These two appeals by the assessee are directed against two separate orders of the Commissioner of Income Tax (Exemption), Jaipur dated 28.01.2026 [hereinafter referred to as “the learned CIT(E)”], rejecting the assessee’s application for registration under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) and its application for approval under section 80G(5) of the Act respectively.

I.T.A Nos. 554 & 555/JPR/2026 Page No 2 Gramin Yuva Vikas Sansthan

2.

The grounds of appeal raised by the assessee in the memorandum of appeal in Form No. 36 read as under: ITA No. 554/JPR/2026

“1. That the Ld. CIT(E), Jaipur, has erred in facts and in law by cancelling the application under section 12AB(1)(ac)(ii) for permanent registration. 2. The assessee crave right to add, alter, amend ground of appeal.”

ITA No. 555/JPR/2026

“1. That the Ld. CIT(E), Jaipur, has erred in facts and in law by cancelling the application u/s 80G(5) for permanent registration. 2. The assessee crave right to add, alter, amend ground of appeal.”

3.

The assessee is a society registered under the Rajasthan Societies Registration Act, 1958. It filed an application in Form No. 10AB for registration under section 12AB of the Act. The learned CIT(E) rejected the application on the following grounds: (i) The application in Form No. 10AB was incomplete. (ii) The assessee was not registered under the Rajasthan Public Trusts Act, 1959 (hereinafter referred to as “the RPT Act”).

4.

The learned CIT(E) has, in paragraph 2.2 of the impugned order, observed as under:

I.T.A Nos. 554 & 555/JPR/2026 Page No 3 Gramin Yuva Vikas Sansthan

2.2. On verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and the documents required to be accompanied with Form 10AB were not furnished such as: -  12AA registration prior to the new regime on the basis of which registration under section 12A (1)(ac) (i) has been obtained from the CPC.  80G approval prior to the new regime on the basis of which approval under section 80G(5)(i) has been obtained from the CPC.  self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010 (42 of 2010), if the applicant is registered under such Act.  self-certified copy of the documents evidencing adoption or modification of the objects.”

5.

The learned Authorized Representative (hereinafter referred to as “the learned AR”) for the assessee submitted that all the relevant details along with the required documents had already been filed before the learned CIT(E), but the same were not considered and the application was rejected without affording an effective opportunity of hearing. He further submitted that the assessee has since obtained registration under the RPT Act on 20.02.2026, a copy of which is placed at page 23 of the paper book. As this registration was obtained after the date of the impugned order, he prayed that the matter may be restored to the file of the learned CIT(E) for fresh consideration. 6. The learned AR further submitted that while filing Form No. 10A at the first stage of renewal, the assessee selected the code relating to sub clause (A) of clause (iv) of the first proviso to sub section (5) of section

I.T.A Nos. 554 & 555/JPR/2026 Page No 4 Gramin Yuva Vikas Sansthan

80G of the Act, which relates to provisional approval, although the society already held a valid approval under section 80G of the Act. He submitted that the incorrect code was selected inadvertently and relied on Circular No. 11/2022 dated 03.06.2022 issued by the Central Board of Direct Taxes (hereinafter referred to as “the CBDT”), which, according to him, permits such an error to be corrected in favour of the assessee.

7.

The learned Departmental Representative (hereinafter referred to as “the learned DR”) did not seriously oppose the prayer for restoring the matter to the file of the learned CIT(E) for fresh consideration.

8.

We have heard both the parties and perused the material available on record, including the paper book of 63 pages filed by the assessee. We note that the assessee holds an order of registration under section 12A of the Act dated 10.03.2022 and has also been granted provisional approval under section 80G(5) of the Act. We further note that the assessee has obtained registration under the RPT Act on 20.02.2026, that is, after the date of the impugned orders.

9.

Registration under the RPT Act was one of the two grounds on which the application was rejected. That registration has been obtained by the assessee after the impugned order was passed and, therefore, this material development could not have been considered by the learned

I.T.A Nos. 554 & 555/JPR/2026 Page No 5 Gramin Yuva Vikas Sansthan

CIT(E). The assessee also claims that the documents said to be missing were in fact filed and that it was not afforded an effective opportunity of being heard. In these circumstances, and in the interest of justice, we set aside the order rejecting registration under section 12AB of the Act and restore the matter to the file of the learned CIT(E) with a direction to decide the application afresh after affording the assessee a reasonable opportunity of being heard and after considering all the documents and submissions filed by it, including the registration under the RPT Act and the CBDT Circular referred to above.

10.

Approval under section 80G(5) of the Act is consequential to registration under section 12AB of the Act. Since the application for registration is now to be considered afresh, we also set aside the order rejecting approval under section 80G(5) of the Act and restore that matter to the file of the learned CIT(E) with a direction to decide it afresh in accordance with law after affording the assessee a reasonable opportunity of being heard.

11.

The assessee is directed to cooperate in the fresh proceedings before the learned CIT(E) and to furnish the required documents without seeking unnecessary adjournments.

I.T.A Nos. 554 & 555/JPR/2026 Page No 6 Gramin Yuva Vikas Sansthan

12.

In the result, both the appeals filed by the assessee are allowed for statistical purposes.

Order pronounced in the open court on 25-08-2026

Sd/- Sd/-

(T.R. SENTHIL KUMAR) (PRAKASH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 25/08/2026 *Ganesh Kr., Sr. PS आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT 6. Guard file. By order/आदेश से,

सहायक पंजीकार आयकर अपील�य अ�धकरण, t;iqj

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