S R KALLA MEMORIAL CHARITABLE TRUST,JAIPUR vs. ITO EXEMPTION, JAIPUR

ITA 1000/JPR/2026Status: DisposedITAT Cochin29 September 2026AY 2027-2811 pages
AI SummaryDismissed

What were the facts?

The assessee, S.R. Kalia Memorial Charitable Trust, filed appeals against orders dated March 27, 2026, and March 28, 2026, passed by the Commissioner of Income Tax (Exemption), Jaipur (CIT(E)). These orders rejected the Trust's applications filed in Form 10AB for registration under Section 12A(1)(ac)(ii) and for approval under Section 80G(5)(ii) of the Income Tax Act, 1961. The rejection was primarily based on the CIT(E)'s finding that the Trust failed to prove the genuineness of its activities. The Trust had initially filed an application under Section 12A(1)(ac)(iii) on August 4, 2025, which it later claimed was under the wrong section. This initial application was rejected by the CIT(E) on January 16, 2026. The Trust then filed a fresh application under Section 12A(1)(ac)(ii), which led to the impugned orders.

What did the Tribunal hold?

The Tribunal held that the assessee's appeals were not maintainable. The reasoning was that the assessee's first application, though filed under a wrong section, was decided on merits by the CIT(E) vide order dated January 16, 2026. When an application is rejected on merits, the statutory remedy available to the assessee is to challenge the order before a higher forum. Instead of doing so, the assessee filed a second application in Form 10AB, which amounted to a misuse of the process of law. The Tribunal noted that the CIT(E) had categorically recorded that since no appeal was filed against the order dated January 16, 2026, the findings for rejection had attained finality. Therefore, the second application was not maintainable, and consequently, the appeals against the orders rejecting the second application also did not lie. The Tribunal answered the framed question in the negative and dismissed both appeals.

What were the issues?

1. Whether the Ld. CIT(E) erred in rejecting the application filed in Form 10AB under Section 12A(1)(ac)(ii) of the Act, holding that the Trust's activities were not genuine and were carried out beyond its objects, and that it could not be determined if the activities were genuine and as per the objects, thus making the order presumptive and based on suspicion. 2. Whether the Ld. CIT(E) erred in rejecting the application filed under Section 80G(5)(ii) of the Act by relying on the order rejecting the Section 12A(1)(ac)(ii) application, without specific reference to the section under which the order was passed, and by holding that the Trust's activities were not genuine and were carried out beyond its objects, and that the Trust failed to furnish complete replies. Assessee's Contentions: The assessee argued that the rejection of its initial application under Section 12A(1)(ac)(iii) was due to its withdrawal request, not on merits, and that the CIT(E) wrongly rejected it. The assessee contended that the impugned orders were presumptive, based on suspicion, and illegal. It argued that the non-filing of an appeal against the order dated January 16, 2026, was due to filing the application under the wrong clause, not an acceptance of allegations of non-genuine activities. Revenue's Contentions: The revenue contended that the assessee misused the process of law by filing a second application in Form 10AB instead of filing an appeal against the earlier order dated January 16, 2026. The revenue argued that a second application in Form 10AB is not maintainable and is liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12A(1)(ac)(iii),Section 80G(5)(ii),Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR “B” BENCH, JAIPUR

Before: SHRI KULDIP SINGH & SHRI PRAKASH, ACCOUNTANCT MEMBER

PER : KULDIP SINGH, JUDICIAL MEMBER:-

The Appellant, S.R. Kalia Memorial Charitable Trust by filing aforesaid interconnected appeals, sought to set aside the impugned orders both dated 27.03.2026 & 28.03.2026 passed by the Commissioner of Income Tax (Exemption), Jaipur [hereinafter referred to as the ‘CIT(E)’] on the grounds inter-alia that:- “1. Under the facts, circumstance of the case and in law, the Ld. CIT (Exemption), Jaipur has erred in passing the impugned order, dated

I.T.A No. 1000 & 1001/JPR/2026 Page No 2

27.03.

2026, denying the application, filed in Form 10AB, by the appellant, under section 12A(1)(ac)(ii) of the Income Tax Act, 1

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(1)(ac)(ii)

All 669 judgments and leading authorities on Section 12A(1)(ac)(ii) →

Recent GST High Court judgments

Search GST case law →