CURIO CHILDRENS THEATRE AND PERFORMING ART SOCIETY,JAIPUR vs. THE COMMISSIONER OF INCOME-TAX (EXEMPTION), JAIPUR

ITA 684/JPR/2026Status: DisposedITAT Jaipur30 September 2026AY 2025-264 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the Ld. CIT(E) had not afforded sufficient opportunity of hearing to the assessee before rejecting the application for registration under Section 12A of the Income Tax Act, 1961. The Tribunal noted that only two opportunities were given, which was insufficient. Therefore, in the interest of justice, the Tribunal decided to restore the assessee's application back to the Ld. CIT(E) for reconsideration after providing a due opportunity of hearing. Consequently, the denial of approval under Section 80G, which was based on the lack of Section 12A registration, was also set aside and restored to the Ld. CIT(E) for reconsideration along with the Section 12A application. The ratio decidendi is that an applicant must be given a fair and adequate opportunity to present their case before an authority rejects their application, especially when statutory registrations and approvals are sought. The appeals were allowed for statistical purposes.

What were the facts?

The assessee, Curio Childrens Theatre and Performing Art Society, filed appeals (ITA Nos. 684 & 685/JPR/2026) against orders dated 22.01.2026 passed by the Commissioner of Income Tax (Exemption), Jaipur (Ld. CIT(E)). The Ld. CIT(E) rejected the assessee's application for registration under Section 12A of the Income Tax Act, 1961, and consequently denied approval under Section 80G of the Act. The rejection of the Section 12A application was based on the assessee not being registered under the Rajasthan Public Trust Act, 1959, incomplete Form 10AB, and alleged non-genuineness of activities. The Ld. CIT(E) had afforded only two opportunities for hearing. The appeals were heard together as the issues were interlinked.

What were the issues?

1. Whether the Ld. CIT(E) erred in rejecting the assessee's application for registration under Section 12A of the Income Tax Act, 1961, on grounds of non-registration under the Rajasthan Public Trust Act, 1959, incomplete documentation, and non-genuineness of activities, without providing sufficient opportunity for hearing? 2. Whether the Ld. CIT(E) erred in denying approval under Section 80G of the Income Tax Act, 1961, solely on the basis of the rejection of the Section 12A registration? Assessee's Contentions: The assessee argued that the Ld. CIT(E) did not provide sufficient opportunity of hearing before passing the ex-parte orders rejecting their applications. The assessee relied on the principle of natural justice. Revenue's Contentions: The Ld. DR fairly agreed that the assessee's application should be reconsidered by the Ld. CIT(E) after giving due opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 12A,Section 80G

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

For Appellant: Ms. Tanisha Jain, CA
Hearing: 23.09.2026Pronounced: 30.09.2026

Per Annapurna Gupta, AM:- Both the present appeals have been filed by the assessee against separate orders passed by the CIT Exemption Jaipur (hereinafter referred to as “Ld. CIT(E)”), both dated 22.01.2026 rejecting assessee’s application seeking registration under Section 12A of the Income Tax

P a g e | 2 ITA Nos.684 and 685/JPR/2026 Curio Childrens Theatre and Performing Art Society Act, 1961 (hereinafter referred to as “the Act”) and approval under Section 80G of the Act respectively.

2.

Approval u/s 80G of the Act has been denied on account of absence of registration u/s 12A of the Act. Since the issues involved in the appeals are interlinked, both th

The order continues below.

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