SHRI 108 SUDHARM NANG AHINSA TRUST,JAIPUR vs. CIT(E), JAIPUR, JAIPUR

ITA 372/JPR/2026Status: DisposedITAT Jaipur30 September 20266 pages
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What did the Tribunal hold?

The Tribunal held that the rejection of the application on the ground of non-maintainability was not sustainable. It noted that the proviso to section 12A(1)(ac), effective from October 1, 2024, allowed the Commissioner to condone delays if there was a reasonable cause. The CIT(E) had failed to consider this aspect. Regarding the genuineness of activities, the Tribunal acknowledged that the Assessee had not furnished the requested details, contributing to the situation. However, it referred to a coordinate bench's observation distinguishing between a positive finding of non-genuineness and a failure to establish genuineness due to inadequate evidence. Given that the first ground of rejection required reconsideration, the Tribunal deemed it appropriate to examine the genuineness of activities afresh. Consequently, the impugned order was set aside, and the application was restored to the CIT(E) for a fresh decision, including consideration of the delay condonation and the genuineness of activities. The cancellation of provisional registration was also set aside to be decided afresh. The Assessee was directed to cooperate and furnish details. No opinion was expressed on the merits of the application.

What were the facts?

The Assessee, Shri 108 Sudharm Nang Ahinsa Trust, a trust holding provisional registration under section 12A(1)(ac)(vi) of the Income Tax Act, 1961, filed an application in Form No. 10AB on September 29, 2025, for regular registration under section 12AB. The Commissioner of Income Tax (Exemption), Jaipur (CIT(E)), rejected this application and cancelled the provisional registration via an order dated February 4, 2026. The rejection was based on two grounds: (i) the application was non-maintainable as it was filed beyond the prescribed time limit after the commencement of activities, and (ii) the genuineness of the Assessee's activities was not established due to non-furnishing of required documents and details. The Assessee appealed this order to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the Assessee's application for registration under section 12AB of the Income Tax Act, 1961, was maintainable, considering it was filed after the stipulated time from the commencement of activities, as per section 12A(1)(ac)(iii). 2. Whether the genuineness of the Assessee's activities was not established, leading to the rejection of its application for registration. Assessee's Contentions: The Assessee argued that the rejection on both grounds was unjustified and that it was capable of providing the requested details. The Assessee relied on the fact that the proviso to section 12A(1)(ac) inserted by the Finance (No. 2) Act, 2024, which allows for condonation of delay, was in force when the CIT(E) passed the order. Revenue's Contentions: The Revenue relied on the impugned order and submitted that the Assessee did not respond to the show cause notice issued by the CIT(E).

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac),Section 12A(1)(ac)(iii),Section 12A(1)(ac)(vi)

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: 372/JPR/2026 Assessment Year: NA Shri 108 Sudharm Nang CIT Ahnisa Trust Exemption Jaipur Kalani & Co LLP Vs Chartered Accountants, 5th (Respondent) Floor Milestone Building, Gandhinagar Turn Tonk Road, Jaipur PAN: ABGTS 2843 E (Appellant) Assessee Represented: Sh. P.C. Parwal, FCA 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 04.02.2026 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 and cancelling its provisional registration.

2.

The grounds of appeal raised by the Assessee before us in the memorandum of appeal in Form No. 36 read as under: Shri 108 Sudharm Nang Ahinsa Trust "

1.

The Ld. CIT(E) has erred

The order continues below.

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