ARYA KANYA VIDYALAYA SAMITI,ALWAR vs. THE CIT EXEMPTION, JAIPUR, JAIPUR

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “A” BENCH, JAIPUR BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.1708/JPR/2025 (Assessment Year:2026-27)

Arya Kanya Vidyalaya Vs. CIT Samiti Exemption Swami Dayanand Marg, Jaipur Alwar �थायीलेखासं./जीआइआरसं./PAN/GIR No:AAAAA9121D Appellant .. Respondent Appellant by : Sh. Kranti Mehta, CA Respondent by : Sh. Ananad Swaroop, CIT Date of Hearing 03.08.2026 Date of Pronouncement 02.11.2026 O R D E R 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 24.09.2025, rejecting assessee’s application in Form 10AB seeking registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti 2. The grounds raised by the assessee read as under:- 1. 2. That Ld. CIT Exemption, Jaipur erred in cancelling the registration granted to the appellant without any cogent reason even when the appellant has been carrying on its activities as per the provisions of Income Tax Act, 1961. Accordingly, the impugned order cancelling the registration of the appellant u/s 12AB is bad in law and facts and deserves to be quashed. 2. 3. That the appellant prays to add OR alter any ground of appeal at OR before the time of hearing. 3. 1. That Ld. CIT Exemption, Jaipur erred in rejecting the application for renewal of registration u/s 12AB even when the appellant has been carrying on its activities according to the objects of the society and the grounds mentioned in the impugned order for rejecting the claim of renewal are against the facts of the case, trivial and no cogent ground mentioned in the order. Accordingly, the impugned order is bad in law and facts of the case, hence the appellant's application for renewal of registration deserves to be accepted.

P a g e | 3 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti to consider the same and rejected assesses application stating that bills and vouchers were not produced before him. It was further contended that the assessee has obtained registration under the RPT Act and had filed evidence before the Ld. CIT(E) of having applied for seeking the said registration. Ld. Counsel for the assessee pleaded that the assessee having obtained RPT registration and also being in a position to establish the genuineness of the activities carried out by it,therefore, an opportunity be granted to the assessee to clear the above two deficiencies noted by the ld. CIT(E) for grant of registration u/s 12A of the Act. 5. With respect to the deficiency noted by the Ld. CIT(E) of application being filed under the wrong clause, it was pointed out to us during the course of hearing, that a detailed reply in this regard was filed by the assessee to the ld. CIT(E), which is reproduced at page 4-6 of the order explaining the assessee’s position as to why the application was filed u/s 12A(1)(ac)(iii) , which the Ld.CIT€ noted to be wrong clause and to which, he contended, no cognizance was taken by the Ld. CIT(E). 6. Ld. DR however supported the order of the ld. CIT(E). 7. We have considered the rival submissions. Undoubtedly, the present order of the Ld. CIT(E) rejecting assessee’s application seeking registration u/s 12A(1)(ac)(iii) of the Act has been passed after giving only two notices of hearing to which. We find, Ld. CIT(E) has himself noted at para 1 of his order that the assessee did respond to the two notices. Therefore, it is not that the assessee was non-cooperative in the proceedings before the Ld. CIT(E). No further notices of hearing were given and the Ld. CIT(E) noted deficiencies to the effect that genuineness

P a g e | 4 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti of activities were not established and that assessee was not registered under RPT Act. Genuineness of activities was found to have not been established since the assessee failed to produce complete bills and vouchers. Before us Paper Book in four volumes has been filed demonstrating the documents, details and evidences filed to the Ld. CIT(E) as under:

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P a g e | 7 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti 11. With regards to the denial of registration for the reason that application was filed under the wrong clause, the Ld. CIT(E)’s finding is to the effect that the assessee ought to have applied for registration under clause (i) of Section 12A(1)(ac) of the Act rather than applying for registration under sub-clause (iii) of the Act. As per the Ld. CIT(E) the assessee was already registered u/s 12AA of the Act vide registration order dated 03.02.2009 and therefore, assessee ought to have applied for registration as per law under clause (i) of Section 12A(1)(ac) of the Act. It is in this context, that he has held that the application filed by the assessee under sub-clause (iii) was under the wrong clause. His findings in this regard are contained at page 6 and 7 of his order as under:- …. In view of the above discussions, it is imperative to quote the section 12A of Income Tax Act which is stated as below: "12A. (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:- (ac) notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income has made an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for registration of the trust or institution,- (i) where the trust or institution is registered under section 12A (as it stood immediately before its amendment by the Finance (No. 2) Act, 1996 (33) of 1996)] or under section 12AA (as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020)], within three months from the first day of April, 2021; (ii) where the trust or institution is registered under section 12AB or approved under sub- clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 and the period of the said registration or approval, as the case may be, is due to expire, at least six months prior to expiry of the said period; (iii) where the trust or institution has been provisionally registered under Section 12AB or provisionally approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub- clause (via) of clause (23C) of section 10, at least six months prior to expiry of period of the

P a g e | 8 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti provisional registration 87[or provisional approval, as the case may be, or within six months of commencement of its activities, whichever is earlier,

(iv) where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11, at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative;

(v) where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, within a period of thirty days from the date of the said adoption or modification;

(vi) in any other case, where activities of the trust or institution have-

(A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought;

(B) commenced and no income or part thereof of the said trust or institution has been excluded from the total income on account of applicability of sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, or section 11 or section 12, for any previous year ending on or before the date of such application, at any time after the commencement of such activities, and such trust or institution is registered under section 12AB:

Provided that where the application is filed beyond the time allowed in sub-clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time;"

On perusal of the sub-sections of 12A, it is noted that the applicant can apply for provisional registration under sub-clause (vi) only when it is not eligible to apply for registration under sub-clauses (i) to (v). In the present case, the applicant already have registration u/s 12AA dated 03.02.2009(affixed below) due to which the applicant should have applied for registration under clause (i) rather than applying for registration under sub-caluse (iii) on 28.03.2025. Thus, the applicant has taken registration in wrong clause. ……

P a g e | 9 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti CIT(E) itself reproduced the explanation of the assessee at page 4 to 6 of his order as under:-

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P a g e | 11 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti part, once on 27.05.2021 granting provisional registration for AY 2021- 22 to AY 2023-24 and another vide provisional registration order dated 07.04.2023 for AY 2023-24 to AY 2025-26. That when the provisional registration granted for the second time was about to expire the assessee filed the present application on 28.03.2025 seeking renewal of registration in terms of Section 12A(1)(ac)(iii) of the Act. The assessee in its letter had contended that this application was filed bonafidely. As per the assessee submission, it appears that the Department itself had granted provisional registration on previous two occasions therefore there appears to be have been some errors and omissions both on the part of the assessee and the Department while filing application forseeking registration and while granting provisional registration to the assessee, respectively. 14. Though, all these facts were brought to the notice of the Ld. CIT(E), he has not applied his mind to the same, not verified the facts before arriving at his finding of the assessee having filed application under the wrong clause for rejecting the application filed by the assessee. 15. We are of the view that the Ld. CIT(E) needs to look into the matter, verify the facts stated by the assessee, consider at whose part the error or omission took place when the assessee has stated that he has beengranted provisional registration twiceand thereafter arrive at a finding of deficiency if any in the application filed by the assessee. We may add that mere mentioning of wrong clause does not invalidate the application filed by the assessee. It is a curable defect in the application

P a g e | 12 ITA No.1708/JPR/2025 Arya Kanya Vidyalaya Samiti and the ld. CIT(E) ought to bring this notice of the assessee, after considering the explanation of the assessee of the circumstances in which the application was filed in clause(i) of section 12A(1)(ac) of the Act in the present case, so as to give him opportunity to remove the defect. 16. In view of the above , we restore the issue of grant of registration u/s 12A(1)(ac) of the Act back to the file of the Ld. CIT(E) to give adequate opportunity of hearing to the assessee to furnish all facts regarding being granted registration under the RPT Act, establishing the genuineness of its activities and also vis-à-vis the issue of application being filed under the wrong or incorrect clause, which is to be considered as per our findings and directions above and to consider all other matters necessary for grant of registration under the Act. 17. In effect, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the Open Court on 02.11.2026

Sd/- Sd/- (Kuldip Singh) (Annapurna Gupta) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 02.11.2026 Mittali, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

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By Order, Mittali Digitally signed by: Mittali Asst. Registrar/Sr. PS DN: CN = Mittali email = ITAT, Jaipur mittaligupta34671@gmail. com C = IN O = Personal Date: 2026.11.02 15:39:53 + 05'30'