SELF DEVELOPMENT INSTITUTE,JAIPUR vs. CIT EXEMPTION, JAIPUR

ITA 1555/JPR/2026Status: DisposedITAT Jaipur30 September 2026AY 2026-276 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while compliance with other laws, such as the Rajasthan Public Trusts Act, 1959, is a relevant consideration under Section 12AB(1)(b)(i)(B) of the Act, the outright rejection of an application solely on the ground of a deficiency in this regard, especially when the process of curing it is underway, requires careful consideration of the facts. The Tribunal noted that the Assessee had applied for registration under the Rajasthan Public Trusts Act, 1959, which was under process. The Tribunal also clarified that Section 29 of the Rajasthan Public Trusts Act, 1959, which bars the hearing and deciding of a suit by an unregistered trust, does not render an appeal before the Income Tax Appellate Tribunal inadmissible. In the interest of justice, and considering that the substantive claim of the Assessee had not been examined, the Tribunal granted one more opportunity to the Assessee to cooperate fully. The impugned order was set aside, and the application was restored to the file of the CIT(E) for a fresh decision. The CIT(E) was directed to examine all aspects, call for necessary documents, and pass a speaking order after providing a reasonable opportunity of being heard. The Tribunal expressed no opinion on the merits of the application.

What were the facts?

The Assessee, Self Development Institute, filed an application in Form No. 10AB on September 30, 2025, seeking registration under Section 12AB of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption), Jaipur (CIT(E)), rejected the application on March 14, 2026. The rejection was based solely on the ground that the Assessee was not registered under the Rajasthan Public Trusts Act, 1959. The Assessee had failed to provide compliance to two of the three letters issued by the CIT(E) and had not addressed the issue of registration under the Rajasthan Public Trusts Act, 1959. The impugned order did not record any adverse findings regarding the Assessee's objects or the genuineness of its activities.

What were the issues?

1. Whether the learned CIT(E) erred in rejecting the Assessee's application for registration under Section 12AB of the Income Tax Act, 1961, on the sole ground of non-registration under the Rajasthan Public Trusts Act, 1959, rendering the denial invalid in law. Assessee's Contention: The rejection based on non-registration under the Rajasthan Public Trusts Act, 1959, is not a valid ground for outright rejection. The Assessee has applied for registration under the Rajasthan Public Trusts Act, 1959, and it is currently under process. The Assessee sought an opportunity to present relevant material to the CIT(E). Revenue's Contention: The learned Departmental Representative relied on the impugned order and pointed out that the Assessee did not respond to the letters issued by the learned CIT(E).

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(ii),Section 253(1)(c)

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, JAIPUR Before: Shri Kuldip Singh, Judicial Member And Shri Prakash, Accountant Member ITA No: 1555/JPR/2026 Assessment Year: 2026-27 PAN: AAAAS 6052P (Appellant)

Assessee Represented: Ms. Apeksha Kalra, Adv Revenue Represented: Sh. Shravan Kumar Meena, CIT Date of hearing : 23-09-2026 Date of pronouncement : 30-09-2026

PER : PRAKASH, ACCOUNTANT MEMBER:-

1.

This appeal by the Assessee is directed against the order of the learned Commissioner of Income Tax (Exemption), Jaipur [hereinafter referred to as "the learned CIT(E)"] dated 14.03.2026 passed in Form No. 10AD under section 12AB(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), rejecting the application of the Assessee for registration under section 12AB of the Act.

2.

The grounds of appeal raised by the Assessee before us in the memorandum of appeal in Form No. 36 read as under:

"

1.

On the facts and in the circumstances of the case as well as in the law, ld. CIT(Exemption) grossly erred in rejecting the registration application filed u/s 12AA on

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 12AB

All 5,972 judgments and leading authorities on Section 12AB →

Recent GST High Court judgments

Search GST case law →