SHRI DIGAMBER JAIN ATISHYA KSHETRA PARASHVNATH,JAIPUR vs. CIT (EXEMPTION), JAIPUR, JAIPUR

ITA 650/JPR/2026Status: DisposedITAT Jaipur13 October 2026AY 2025-263 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the order rejecting the assessee's application for registration under Section 12A of the Act was passed without providing adequate opportunity of hearing. The Tribunal noted the agreement from the learned DR that only two opportunities of hearing were given. Therefore, the Tribunal directed the CIT(E) to reconsider the assessee's application for registration under Section 12A of the Act. This reconsideration is to be done after giving due opportunity of hearing to the assessee. The ratio decidendi is that an application for registration under Section 12A cannot be rejected without adhering to the principles of natural justice, which includes providing sufficient opportunities for the assessee to present their case. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Shri Digamber Jain Atishya Kshetra Parashvnath, filed an appeal against the order dated 12.01.2026 passed by the Commissioner of Income Tax (Exemption), Jaipur (CIT(E)). The CIT(E) rejected the assessee's application for registration under Section 12A of the Income Tax Act, 1961. The rejection was based on the assessee not being registered under the Rajasthan Public Trust Act, 1959, incomplete Form 10AB, and alleged non-genuineness of activities. Specific missing documents included a self-certified copy of an existing 12A registration order, annual accounts for FY 2021-22 onwards, and a note on activities. The assessee contended that the order was passed without adhering to principles of natural justice, with only two hearing notices issued.

What were the issues?

1. Whether the order rejecting the assessee's application for registration under Section 12A of the Income Tax Act, 1961, was passed in violation of the principles of natural justice, specifically regarding the adequacy of opportunities for hearing provided to the assessee. Assessee's Contentions: The assessee argued that the order was passed without observing the principles of natural justice, as only two notices of hearing were issued. The assessee requested reconsideration of the application after granting a proper opportunity of hearing. Revenue's Contentions: The Revenue, through the learned Departmental Representative (DR), fairly agreed that the CIT(E) had provided only two opportunities of hearing while rejecting the assessee's application.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “A” BENCH, JAIPUR

Hearing: 06.10.2026Pronounced: 13.10.2026

Per Annapurna Gupta, AM:- The present appeal has been filed by the assessee against the order passed by the CIT Exemption, Jaipur (hereinafter referred to as “Ld. CIT(E)”), dated 12.01.2026 for rejecting assessee’s application seeking registration under Section 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 Shri Digamber Jain Atishya Kshetra Parashvnath

2.

Order of the ld. CIT(E) rejecting assessee’s application seeking registration u/s 12A of the Act reveals that the same was rejected for the reason that the assessee was not registered under the Rajasthan Public Trust Act 1959 (in short “RPT”) and on account of incomplete form 10AB and non-genuineness of the activities. 3.

The order continues below.

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