S R KALLA MEMORIAL CHARITABLE TRUST,JAIPUR vs. ITO EXEMPTION, JAIPUR

ITA 1000/JPR/2026Status: DisposedITAT Jaipur29 September 2026AY 2027-2811 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeals filed by the appellant were not maintainable. The reasoning was that the appellant's first application, filed under section 12A(1)(ac)(iii) on 04.08.2025, was rejected by the CIT(E) on 16.01.2026 on merits. Despite having a statutory remedy to challenge this order before a higher forum, the appellant instead filed a second application in Form 10AB for registration under section 12A(1)(ac)(ii) and approval under section 80G(5)(ii). The Tribunal found this to be a misuse of the process of law, as the issues decided in the first order had attained finality due to the non-filing of an appeal. The Tribunal noted that the CIT(E) had also observed that since no appeal was filed against the order dated 16.01.2026, the findings for rejection had attained finality. Therefore, the second application was not maintainable, and consequently, the appeals against the rejection of the second application also did not lie. The Tribunal did not decide on the genuineness of the activities or the interpretation of section 2(15) as the appeals were dismissed on procedural grounds.

What were the facts?

The assessee, S.R. Kalia Memorial Charitable Trust, filed appeals against two orders dated 27.03.2026 and 28.03.2026 passed by the Commissioner of Income Tax (Exemption), Jaipur (CIT(E)). These orders rejected the Trust's applications filed in Form 10AB for registration under section 12A(1)(ac)(ii) and for approval under section 80G(5)(ii) of the Income Tax Act, 1961. The rejection was primarily on the grounds that the Trust's activities were not genuine and were carried out beyond its stated objects. The Trust had initially filed an application under section 12A(1)(ac)(iii) on 04.08.2025, which it later claimed was under the wrong section. This initial application was rejected by the CIT(E) on 16.01.2026. Subsequently, the Trust filed a fresh application under section 12A(1)(ac)(ii), which was also rejected by the impugned orders.

What were the issues?

1. Whether the Ld. CIT(E) erred in rejecting the application filed in Form 10AB under section 12A(1)(ac)(ii) of the Act, holding that the Trust's activities were not genuine and were carried out beyond its objects, and that the order was presumptive and based on suspicion. 2. Whether the Ld. CIT(E) erred in rejecting the application filed in Form 10AB under section 80G(5)(ii) of the Act, by relying on the order rejecting the section 12A application, and holding that the activities were not genuine and were carried out beyond the trust's objects. Assessee's Contentions: - The rejection of the application under section 12A(1)(ac)(ii) was illegal and bad in law, being presumptive and based on suspicion. - The activities did not fall under non-charitable activities as per section 2(15), and the Trust had not been used for siphoning funds, considering its past history and submitted documents. - The rejection of the first application (under section 12A(1)(ac)(iii)) was due to filing under the wrong clause, not due to non-genuine activities, and thus, not filing an appeal against that order should not be taken adversely. - The order rejecting the section 80G application was illegal as it relied on the presumptive order for the section 12A application. - The Trust had failed to furnish complete replies was incorrect, and the order was arbitrary. Revenue's Contentions: - The Trust misused the process of law by filing a second application in Form 10AB instead of filing an appeal against the earlier order dated 16.01.2026. - A second application in Form 10AB is not maintainable and is liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12A(1)(ac)(iii),Section 80G(5)(ii),Section 2(15)

AI-generated summary — verify with the full judgment below

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

Before: SHRI KULDIP SINGH & SHRI PRAKASH, ACCOUNTANCT MEMBER

PER : KULDIP SINGH, JUDICIAL MEMBER:-

The Appellant, S.R. Kalia Memorial Charitable Trust by filing aforesaid interconnected appeals, sought to set aside the impugned orders both dated 27.03.2026 & 28.03.2026 passed by the Commissioner of Income Tax (Exemption), Jaipur [hereinafter referred to as the ‘CIT(E)’] on the grounds inter-alia that:- “1. Under the facts, circumstance of the case and in law, the Ld. CIT (Exemption), Jaipur has erred in passing the impugned order, dated

I.T.A No. 1000 & 1001/JPR/2026 Page No 2

27.03.

2026, denying the application, filed in Form 10AB, by the appellant, under section 12A(1)(ac)(ii) of the Income Tax Act, 1

The order continues below.

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