BABA KHETNATH MAHILA SHIKSHA PARSAR SAMITTEE,ALWAR vs. COMMISSIONER OF INCOME TAX EXEMPTION, JAIPUR

ITA 1522/JPR/2026Status: DisposedITAT Jaipur30 September 2026AY 2026-274 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the impugned order passed by the CIT (Exemption) was without affording adequate opportunity of hearing to the assessee. It was also noted that the rejection was based solely on technical grounds without commenting on the genuineness of the activities carried out by the assessee. The Tribunal agreed with the assessee's submission that the order was passed without granting reasonable time for compliance and in disregard to the principles of natural justice. The Tribunal found that the issues raised by the CIT (Exemption) were technical and procedural in nature, which were curable. Therefore, the matter was directed to be reconsidered by the CIT (Exemption) afresh after giving due opportunity of hearing to the assessee. The ratio decidendi is that a registration under Section 12A should not be denied on purely technical grounds without affording a reasonable opportunity of hearing and considering the substantive charitable nature of the assessee's activities.

What were the facts?

The assessee, Baba Khetnath Mahila Shiksha Parsar Samittee, filed an appeal against the order of the CIT (Exemption), Jaipur, dated 19.03.2026. The CIT (Exemption) rejected the assessee's application for registration under Section 12A of the Income Tax Act, 1961. The rejection was based on two primary reasons: the assessee was not registered under the Rajasthan Public Trust Act, 1959, and the application form 10AB was incomplete. Specific missing documents included prior 12AA and 80G registrations, annual accounts for preceding years (up to three years), and a note on activities. The assessment year(s) are not explicitly stated, but the application for registration implies the current or preceding financial year. The procedural history involves the CIT (Exemption) issuing a deficiency notice on 20.01.2026, requiring compliance by 27.01.2026, and subsequently passing the rejection order.

What were the issues?

1. Whether the order passed by the CIT (Exemption) rejecting the assessee's application for registration under Section 12A of the Income Tax Act, 1961, is in violation of the principles of natural justice, considering the limited opportunity for compliance and hearing provided to the assessee? Assessee's contentions (filed in writing, as none appeared): The order of the CIT (Exemption) was a gross violation of natural justice, as only one deficiency notice was issued with a very short compliance period (six days). The assessee had initiated the process for Rajasthan Public Trust Act registration and was ready to furnish it upon issuance. The rejection was based on technical and procedural grounds, curable in nature, without any adverse findings on the genuineness of activities, deviation from objects, or misuse of funds. The denial of registration on hyper-technical grounds defeats the purpose of the beneficial provision. The assessee has been carrying out charitable activities for over three decades. Revenue's contentions: The Ld. DR was unable to controvert the factual contention that the assessee had not been afforded an adequate opportunity of hearing, as only one notice was issued. This fact was also recorded in the CIT's order.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12A(1)(ac)(i),Section 80G(5)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “A” BENCH, JAIPUR

Before: SMT. ANNAPURNA GUPTA & SHRI T. R. SENTHIL KUMAR

Hearing: 23.09.2026Pronounced: 30.09.2026

Per Annapurna Gupta, AM:- The present appeal has been filed by the assessee against the order passed by the CIT Exemption Jaipur(hereinafter referred to as “Ld. CIT(E)”), dated 19.03.2026 rejecting assessee’s application

P a g e | 2 Baba Khetnath Mahila Shiksha ParsarSamittee seeking registration under Section 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

Order of the ld. CIT(E) rejecting assessee’s application seeking registration u/s 12A of the Act reveals that the same was rejected for the reason that the assessee was not registered under the Rajasthan Public Trust Act 1959 (in short “RPT”) and on account of incomplete form 10AB.

3.

The application fil

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 12A

All 6,064 judgments and leading authorities on Section 12A →

Recent GST High Court judgments

Search GST case law →