CHITRA NIRMAL SETHIA EDUCATIONAL ACADEMY,SUJANGARH vs. ITO EXEMPTION 1 , JAIPUR, JAIPUR

P a g e | 1 ITA No. 894/JPR/2025 Chitra Nirmal Sethia Educational Academy IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,“A” BENCH, JAIPUR BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No. 894/JPR/2025 (Assessment Year:2023-24)

Chitra Nirmal Sethia Vs. ITO, Educational Academy Exemption-01, Sona Devi Sethia Girls Jaipur College, Station Road, SujangarhChuru �थायीलेखासं./जीआइआरसं./PAN/GIR No: AAAAS0668K Appellant .. Respondent

Appellant by : Ms. Satwika Jha, Adv. Respondent by : Sh. Rajesh Ojha, CIT

Date of Hearing 24.03.2026 Date of Pronouncement 26.05.2026 O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of Ld. Commissioner of Income Tax Exemption, Jaipur(hereinafter referred to as “Ld. CIT(E)”) dated 13.12.2023.

P a g e | 2 ITA No. 894/JPR/2025 Chitra Nirmal Sethia Educational Academy 2. The assessee in this appeal is aggrieved by the order of the ld. CIT(E) dated 13.12.2023, whereby, the ld. CIT(E) has not only rejected the application of the assessee trust for final/regular approval sub-Section (5) of Section 80G of the Income Tax Act (in short ‘Act’), but also vide the same order, without giving any opportunity of hearing to the assessee, has also cancelled/rejected the registration u/s 12AB of the Act. The main reasons pointed out by the ld. CIT(E) for such an action are as under:- i. Incomplete form 10AB ii. Non-registration with Rajasthan Public Trust Act, 1959 iii. Non-establishment of the genuineness of the activities iv. The prescribed form 10AB being filed late and not within the 6 months from the commencement of its activities. 3. We have heard the rival contentions of the parties and gone through the record. The impugned order of ld. CIT(E) is an ex parte order. Even there is a delay of 462 days in filing the present appeal. A separate application for condonation of delay has been filed, wherein, it has been contended that the trustees of the assessee trust were not well conversant with the complex online procedures relating to the income tax matters/registration etc. That no physical notice was ever received from the ld. CIT(E). The notices uploaded on the income tax portal, if any, did not come to the notice of the assessee. That even the assessee was not aware that its registration u/s 12AB has also been cancelled; that it was only when the claim of deduction u/s 11 of the Act was rejected on the ground that the assessee does not enjoy registration u/s

P a g e | 3 ITA No. 894/JPR/2025 Chitra Nirmal Sethia Educational Academy 12A of the Act and the demand notice was issued, only then the trustees came to know about the impugned order, whereby not only the application for regular approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act was rejected, but also the registration enjoyed by the assessee u/s 12A of the Act was cancelled. The ld. Counsel has further submitted, that due to the aforesaid reasons, the deficiencies pointed out by the ld. CIT(E) in form 10AB could not be rectified/removed. Further, so far as, the registration under Rajasthan Public Trust Act, 1959 was concerned,the Ld. Counsel submitted that earlier there was no such requirement and the assessee was duly registered u/s 12A of the Act. That, however, after such an issue has been raised by the ld. CIT(E), the assessee has duly applied for registration under Rajasthan Public Trust Act, 1959. That 4. So far as the delay in filing the application is concerned, it has been pointed out that ld. CIT(E) just presumed the date of commencement of the activities and further, observed that the CBDT has not extended any date for filing of the application under clause (iii) of first proviso to sub-section (5) of section 80G of the Act, that the time period for any filing applications was extended in respect of provisional/original applications and not in respect of the applications for final/regular registration under clause (iii) of first proviso to sub-section (5) of section 80G of the Act. 5. We have heard rival contention and gone through the record. In this case, the case of the assessee has remained unrepresented before the Ld. CIT(E). It has been pleaded that the assessee was not aware of any

P a g e | 4 ITA No. 894/JPR/2025 Chitra Nirmal Sethia Educational Academy notice of hearing issued by ld. CIT(E). Therefore, the requisite details could not be filed before ld. CIT(E) and even the deficiencies if any in form 10AB could not be cured. The assessee has duly applied for registration under the Rajasthan Public Trust Act, 1959. Under the circumstances, since the assessee is engaged in the charitable activities and hence, considering the above aspect, we are of the view that the assessee should be given an opportunity to present its case before ld. CIT(E) and furnish the requisite details and cure the deficiencies in Form 10AB as have been pointed out by the ld. CIT(E). 6. So far as, the question of limitation in filing Form 10AB is concerned, it is to be noted that, there was lot of confusion and misunderstanding relating to the amendment provisions, not only among the tax professionals, but also among the Income Tax Officers and Authorities. The CBDT has to issue clarifications and even has to amend the prescribed Forms, so as to remove such confusions and discrepancies. The assessee had duly filed the application for Form 10AB before the expiry of the 6 months of the provisional registration. Even the ld. CIT(E) has just presumed that the assessee trust had commenced its activities since Financial Year 2021-22 itself and thereby, held that the application of the assessee was time barred as it was to be filed within 6 months of the commencement of the activities. 7. Therefore, in view of the above discussions, considering the overall facts and circumstances of the case and since, the assessee has duly filed its application for regular/approval u/s 80G(5) of the Act, six months before the expiry of its provisional approval u/s 80G(5) of the

P a g e | 5 ITA No. 894/JPR/2025 Chitra Nirmal Sethia Educational Academy Act and also and also considering the confusions in interpreting the relevant provisions and subsequent clarifications and amendments issued by CBDT, it is held that the application of the assessee be treated as duly filed within the limitation period. 8. However, in relation to the other issues, the matter is restored to the file of ld. CIT(E) with a direction to give an opportunity to the assessee to furnish the requisite details and remove the deficiencies, if any, in Form 10AB and thereafter, to decide the application of the assessee-trust for regular approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act. 9. So far as the action of ld. CIT(E) in cancelling the registration of the assessee u/s 12A/12AB is concerned, the same has been done by the ld. CIT(E) without giving any opportunity to the assessee to present its case. The said action of ld. CIT(E) is not legally sustainable and the same is set aside and the registration of the assessee-trust u/s 12AB of the Act is restored. If the ld. CIT(E) is of the view that the registration of the assessee u/s 12A/12AB of the Act is required to be cancelled, he, should first issue separate show cause notice to the assessee in this respect and thereafter, consider the reply and submissions of the assessee and adjudicate this issue in accordance with law. However, before proceeding to take such an action, ld. CIT(E) is supposed to firstly decide the application of the assessee for regular approval u/s 80G5 of the Act as directed above.

P a g e | 6 ITA No. 894/JPR/2025 Chitra Nirmal Sethia Educational Academy 11. With the above observations, the appeal of the assessee trust is treated as allowed for statistical purposes. Order is pronounced under provision of Rule 34 of ITAT Rules, 1963 on 26/05/2026.

Sd/- Sd/- (Ratnesh Nandan Sahay) ( Sanjay Garg) Accountant Member Judicial member Dated 26.05.2026 Ganesh Kumar, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT By Order, Asst. Registrar ITAT, Jaipur