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Facts
The appellant filed two applications: one for registration under Section 12A(1)(ac)(iii) and another for approval under Section 80G(5)(iii) of the Income Tax Act, 1961. Both applications were dismissed by the CIT(E) citing non-registration under the Rajasthan Public Trust Act, 1959, and non-genuineness of activities for the Section 12A application, which consequently led to the dismissal of the Section 80G application.
Held
The Tribunal held that registration under the RPT Act, 1959, is not a mandatory requirement for registration under Section 12AB. It also found no evidence of proper notice for deficiencies regarding genuineness and noted that the CIT(E)'s order lacked specific instances of non-genuineness despite extensive documents submitted by the appellant. The Tribunal set aside the CIT(E)'s orders and directed the CIT(E) to register the applicant under Section 12A(1)(ac)(iii) and grant approval under Section 80G(5)(iii).
Key Issues
1. Whether registration under the Rajasthan Public Trust Act, 1959 is essential for registration under Section 12AB of the Income Tax Act. 2. Whether the CIT(E) appropriately assessed the genuineness of activities and provided due opportunity to the applicant. 3. Whether approval under Section 80G(5)(iii) can be denied solely based on the rejection of the Section 12AB application.
Sections Cited
12A(1)(ac)(iii), 80G(5)(iii), 12AB, 12AA, 13(1)
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER .
Appellant herein filed two separate applications before Learned CIT(Exemption). One application was filed seeking its registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) The other application was filed u/s 80G(5)(iii) of the Act seeking approval of Learned CIT(E). 2. Vide two separate orders dated 23.06.2025, both the above said applications came to be dismissed.
& 1180/JPR/2025 A-One Children Shikshan Sansthan, Kota. Hence, these two separate appeals filed by the applicant sansthan. Since both the appeals are interconnected based on same facts, same have been argued simultaneously, and as such, same are being disposed of by this common judgment.
Arguments heard. File perused.
By way of this appeal, dismissal of application filed u/s 12A(1)(ac)(iii) of the Act has been challenged. The application came to be dismissed on the following two grounds:- Registration under Rajasthan Public Trust Act, 1959. Non-Genuineness of activities.
As regards the first mentioned ground, it may be mentioned here that Co-ordinate Bench ITAT, Jaipur has held in APJ Abdul Kalam Education and Welfare Trust vs. CIT(E) decided on 15.01.2025 that for the purposes of registration of such institutions, u/s 12AB of the Act, registration under RPT Act, 1959 is not one of the essential requirements. In view of said decision applicable even to this matter, the issue of non registration of the applicant under RPT Act does not survive any more. Non registration of activities 6. Ld. AR for the appellant has challenged the impugned order on the ground that sufficient material required for the purpose of adjudication of this & 1180/JPR/2025 A-One Children Shikshan Sansthan, Kota. issue of genuineness of activities was made available, in reply to the notices issued by Learned CIT(E) on 18.02.2025 and 15.05.2025. Ld. AR has further contended that as per impugned order show cause notice dated 06.06.2025 is stated to have been issued by the said office to the applicant, but, actually no such notice was served upon the applicant , and as such, there was no question of filing of any reply by the applicant or production of any documents relating to the activities of the applicant. In support of his contention, Ld. AR has submitted with a paper book with certificate appended thereto. Ld. AR for the appellant has also submitted copy of a page downloaded from the portal of the department, as regards notices issued for the purpose of e- proceedings, and pointed out that as per this document, only two notices dated 18.02.2025 and 15.05.2025 were issued by the office of Learned CIT(E) to the applicant.
From the abovesaid copy of the relevant page downloaded from the portal of the department, it cannot be said that any show cause notice dated 06.06.2025 was ever issued by the office of Learned CIT(E) to the applicant. In absence of any proof from the side of the department regarding issuance of any such show cause notice, there is no question of compliance or non & 1180/JPR/2025 A-One Children Shikshan Sansthan, Kota. compliance of any directions issued by the said office to the applicant, as regards its activities.
As per page 20 of the impugned order, disposing of application u/s 12AA of the Act, Learned CIT(E) specified therein the documents which were submitted by the applicant with its reply dated 05.03.2025 on issuance of notice dated 18.02.2025. Following were the documents so produced there:- “ Copy of declaration u/s 13(1)©, land documents few photos of school, trustee details, trust deed, final accounts for F.Y. 2021-22 to 2023-24 and provisional account for F.Y. 2024-25 till 31.01.2025, ledger accounts, bank statements for the period of 01.03.2024 to 28.03.2025, bills of construction and purchase, monthly contribution details, provisional registration.”
Ld. DR for the department has submitted that it cannot be said as to which of the documents were submitted by the applicant before Learned CIT(E), and as such, at the most matter can be remanded to Learned CIT(E) for decision afresh after providing another opportunity to the applicant of being heard, on the issue of genuineness of its activities.
As noticed above, the paper book submitted before us on behalf of the appellant carries a certificate to the effect that the documents mentioned therein were before Learned CIT(E). As per this paper book, documents & 1180/JPR/2025 A-One Children Shikshan Sansthan, Kota. running from page no. 1 to 486 and 497 to 500 were made available to Learned CIT(E) for the purpose of adjudication of the two applications. In the situation, there is no question of remand of the matter to Learned CIT(E).
As regards the deficiencies pointed out by Learned CIT(E), even after filing of reply dated 05.03.2025, and the above mentioned documents, we have gone through the paper book submitted before us. We have also gone through the income and expenditure account of the applicant for the year ending 31.03.2023 as well as audit report which includes provisional balance sheet as on 31.01.2025 to satisfy on the issue of genuineness of the activities of the applicant.
In the impugned order, no particular instance or transaction came to be discussed to point out non genuineness of activities or any activity of the applicant-appellant. Result 13. In view of the above discussion, this appeal is allowed and while setting aside the impugned order, the Learned CIT(E) is directed to register the applicant u/s 12A(1)(ac)(iii) of the Act, in accordance with law. & 1180/JPR/2025 A-One Children Shikshan Sansthan, Kota.