NEURO SPINAL SERVICES AND RESEARCH SOCIETY OF RAJASTHAN,JAIPUR vs. COMMISSIONER OF INCOME TAX, EXEMPTION, JAIPUR

ITA 1601/JPR/2026Status: DisposedITAT Jaipur30 September 2026AY 2025-268 pages
AI SummaryAllowed

What were the facts?

The assessee, Neuro Spinal Services and Research Society of Rajasthan, filed an application in Form 10AB on September 30, 2025, seeking registration under Section 12AB of the Income Tax Act, 1961, for the assessment year 2025-26. The Commissioner of Income Tax (Exemption), Jaipur (CIT(E)), rejected the application by an order dated March 17, 2026. The rejection was based on two grounds: (a) the application was incomplete as a prior registration certificate under Section 12AA was not furnished, and (b) the assessee was not registered under the Rajasthan Public Trusts Act, 1959. The assessee had informed the CIT(E) that its application for registration under the Rajasthan Public Trusts Act was pending. The CIT(E) also indicated that proceedings for cancellation of registration under Section 12A(1)(ac)(i) would be initiated separately.

What did the Tribunal hold?

The Tribunal held that the omission to furnish the prior registration certificate under Section 12AA was a deficiency in the manner of presentation, capable of being cured, and did not go to the substantive eligibility of the assessee. It distinguished between defects in substantive eligibility and those in the manner of presentation, citing Shree Bhuwal Mataji Gaushala Sanstha. Regarding the Rajasthan Public Trusts Act, 1959, the Tribunal noted that compliance with other laws is a relevant consideration under Section 12AB(1)(b)(i)(B). However, it found that the CIT(E) had not examined the objects or genuineness of the assessee's activities. The Tribunal agreed with the reasoning in Shree Bhuwal Mataji Gaushala Sanstha that if the process for curing a deficiency (like pending registration under the RPT Act) has been set in motion, the application should be preserved rather than rejected outright. The Tribunal set aside the impugned order and restored the application to the CIT(E) for fresh decision, allowing the assessee to submit the certificate of registration under the RPT Act if obtained, and the earlier registration order. The Tribunal expressed no opinion on the merits of the application. The appeal was allowed for statistical purposes.

What were the issues?

1. Whether the omission to furnish a prior registration certificate under Section 12AA, which was issued by the Department itself, renders the application for registration under Section 12AB incomplete, thereby justifying its rejection? (Question of law, concerning Section 12AB and Rule 17A(2)(e) of the Income Tax Rules, 1962). 2. Whether the pendency of an application for registration under the Rajasthan Public Trusts Act, 1959, at the time of deciding the application under Section 12AB, is a valid ground for outright rejection, or if the process of curing the deficiency has been initiated, should the application be preserved? (Question of mixed law and fact, concerning Section 12AB(1)(b)(i)(B) and the Rajasthan Public Trusts Act, 1959). Assessee's contentions: The prior registration under Section 12AA was issued by the Department and available on record, so its non-submission should not make the application incomplete. The assessee had applied for registration under the Rajasthan Public Trusts Act, 1959, and this was intimated to the CIT(E). The assessee relied on the decision in Shree Bhuwal Mataji Gaushala Sanstha v. CIT (Exemption) (ITA No. 497/Jodh/2025). Revenue's contentions: The revenue relied on the impugned order.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(i),Section 12A(1)(ac)(ii),Section 12AA,Section 253(1)(c),Section 10 (23C)

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: 1601/JPR/2026 Assessment Year: 2025-26

Neuro Spinal Services CIT and Research Society of Exemption Jaipur Rajasthan Vs 105, Near Shyam Nagar (Respondent) Police Station, Vrandawan Vihar Colony Near Shyam Nagar Police Station Jaipur PAN: AAAAN4140M (Appellant) Assessee Represented: Sh. Rajnikant Batra, CA 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 17.03.2026 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: Neuro Spinal Services and Research Society of Rajasthan "

1.

That on the facts and

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 5,957 judgments and leading authorities on Section 12AB →

Latest GST High Court judgments

Search GST case law →