JEEVAN LAKSHYA FOUNDATION ,JAIPUR vs. CIT EXEMPTION JAIPUR, JAIPUR

That the Ld. CIT (Exemption), Jaipur has erred in law and in facts of the case by neither recording the independent satisfaction for rejection of provisional registration and nor issued Show Cause Notice for rejection of provisional registration u/s. 12A of the I.T. Act 1961 which is wrong, unwarranted and bad in Law. Kindly restore the same.

That the Ld. CIT (Exemption), Jaipur has erred in law and in facts of the case in rejecting the provisional registration u/s. 12A without issuing separate DIN of the rejection order, which is against the circular & notification issued by the CBDT. So, the same is wrong. unwarranted and bad in Law. Kindly restore the same.

That the order passed by Ld. Commissioner of Income Tax (Exemption), Jaipur by rejecting provisional registration u/s. 12A of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same.’’

That the Ld. CIT (Exemption), Jaipur has erred in law and in facts of the case by neither recording the independent satisfaction for rejection of provisional approval and nor issued Show Cause Notice for rejection of provisional approval u/s. 80G of the I.T. Act 1961 which is wrong. unwarranted and bad in Law. Kindly restore the same.

That the Ld. CIT (Exemption), Jaipur has erred in law and in facts of the case in rejecting the provisional approval u/s. 80G without issuing separate DIN of the rejection order, which is against the circular & notification issued by the CBDT. So, the JEEVAN LAKSHYA FOUNDATION VS CIT (E), JAIPUR

That the order passed by Ld. Commissioner of Income Tax (Exemption), Jaipur by rejecting provisional approval u/s. 80G of the 1.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the same.’’

1 During the course of hearing, the bench noted that there is delay of 178 days in each appeals for which the assessee of the trust submitted that the delay in filing the appeals were due to confusion of non-clarity about the exact and right legal remedy available to the trust viz. re-apply or appeal and the time was consumed in taking correct and final advice from the counsel to file the appeal before the ITAT and further the assessee submitted that this may be treated as sufficient cause for delay in filing the appeals. To this effect, the assessee has filed affidavit deposing the above facts in the case.

2 Apropos to the grounds so raised by the assessee in ITA No. 1173/JP/2025, the ld. CIT(E) rejected the assessee’s claim of registration u/s 12AB of the Act by observing as under:- 04.……. However, the applicant has failed to comply with the letters, despite being given two opportunities details of which given in para- 1. In the absence of such documents, it could not be determined whether the applicant is genuinely carrying out charitable activity as per its objects. Therefore, assessee claim of registration u/s 12AB is also liable to be rejected on ground of not proving its genuineness of activity. 05. In view of above discussion assessee's claim of registration section 12AB is liable to be rejected and thus being rejected on following grounds: -

Further 12AB (1)(b)(ii) (B) of the Income Tax Act, 1961 also state that if CIT is not satisfied has to pass order rejecting such application and also cancelling its earlier registration. Thus, it is clarified that applicant's provisional registration under clause (vi) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961 dated 05.04.2022 is also being cancelled. Further assessee has failed to give proper justification for regularization of provisional registration, thus with this order provisional registration is also lapsed and cancelled.’’

2 Apropos to the ground so raised by the assessee in ITA No. 1181/JP/2025, the ld. CIT(E) rejected the assessee’s claim of exemption u/s 80G of the Act by observing as under:-

In view of above discussion assessee's claim of approval u/s 80G is liable to be rejected and thus being rejected on following grounds-

3 During the course of hearing, the ld. AR of the assessee in the above appeals mainly submitted that the assessee was not provided adequate opportunity of being heard by the ld. CIT(E) and thus the asssessee should be provided one more opportunity to contest the case before the ld. CIT(E) and to adduce the documents/ details as desired by him (supra). Conclusively, the ld AR of the assessee prayed that the assessee trust may be provided one more opportunity to the contest the case before the ld CIT(E) and restore the appeals to the file of ld CIT(E) for afresh adjudication. It is pertinent to mention that during the course of hearing, the ld. AR of the assessee has filed the copy of Registration of Trust under RPT Act, 1959 and the same is issued by the Office of Asstt. Commissioner (Ist), Devsthan Vibhagh, Jaipur Khand, Jaipur on 4-12-2024 in the name of the Jeevan Lakshya Foundation, Jaipur (assessee) 3.4. Per contra, the ld. DR relied on the orders of the ld. CIT(E). After hearing both parties and perusing the materials available on record, we noticed that the ld. CIT(E) has rejected the assessee’s claim of registration u/s 12AB of the Act. It is also noticed that the ld.CIT(E) has cancelled the provisional registration of the assessee for the reason that the assessee trust had failed to give proper justification for regularization of provisional registration. The prayer of the ld.AR of the assessee is that the assessee may be provided one more chance to adduce the desired documents before the ld. CIT(E) to resolve the issue in question. Therefore, in these circumstances, we restore the matter back to the file of the ld. CIT(E) with the direction that as and when the assessee trust produces the copy of the Registration under RPT Act, 1959 and other documents required by him then the application of the assessee trust for registration u/s 12AB of the Act be decided afresh in accordance with law. The assessee trust is also directed to produce the complete Form 10AB and produce the documents relating to the genuineness of the activities etc. before the ld CIT(E) 3.6 Since we have restored the appeal of the assessee with regard to the registration u/s 12AB of the Act to the file of the ld. CIT(E) for afresh I adjudication, therefore, the outcome of appeal of the assessee u/s 80G of the Act is consequential in nature. 3.7 Before parting, we may make it clear that our decision to restore the matter back (supra) to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law. 4.0 In the result, the appeals of the assessee are allowed for statistical purposes.