GAU JEEV PARMARTH SEWA SANSTHA,ALWAR vs. ITO(E), WARD-1, JAIPUR, JAIPUR

That I was under the bonafide impression that unless the trust is registered under Rajasthan Public Trust Act, 1959 and registration u/s 12AB is granted, nothing can be done and was thus waiting for the registration certificate under RPT Act and order of CIT (E) granting registration u/s 12AB so that the appeal can be filed before ITAT.

The facts stated in Para 1 to 8 above are true and correct to the best of my knowledge and belief. SO HELP ME GOD. Sd/- Deponent ( Mahendra Saini ) VERIFICATION I, Mahendra Saini, President of Gau Jeev Parmarth Sewa Sanstha, do hereby declare that what is stated above is true and correct to the best of my knowledge and belief. Verified today the 26th day of August, 2025. Sd/- Deponent ( Mahendra Saini ) 4. Considering the reasons mentioned in the said application accompanied by Affidavit of the assessee, we feel that the reasons mentioned in the Affidavit constitute sufficient cause for not filing the appeal within the time before us. Therefore, taking a lenient view and considering the principles laid down in the case of Collector, Land Acquisition vs. Mst. Katiji, 1987 AIR 1353 (SC), we condone the delay of 91 days in filing the appeal before us.

The brief facts of the case are that the assessee is a Society providing medical relief to ill animals and giving medical treatments as per the information received either telephonically or through any other mode, society vehicle reaches at the destitute/injured animal and admit at their place and provide aid to them. Further, society provide aid not only to Cows but it also helps all the needy animals required aid. Assessee has been granted with provisional registration vide No. AADTG1614KE20206 on 27.05.2021 for the 3 Assessment Years from 2021- 22 to 2023-24 and as per terms of provisional registration, assessee had applied for Permanent registration on 31.03.2022 under form 10AB. Assessing Officer rejected the application without considering the neediness of these societies which works for the sake of animals. As proceedings also pending u/s 143(2) of the Income Tax Act, 1961 for the A.Y. 2022-23, on the basis of rejection of provisional registration by CIT (Exemption), all the receipts considered as income and tax imposed accordingly. After the rejection of application for registration u/s 12AB by CIT (Exemption), assessee has filed an appeal before the Tribunal. The ITAT has set aside the issue of registration under section 12AB vide order dated 30.10.2024 to the ld. CIT (E) to decide the matter afresh in accordance with law as the reason advanced by the ld. CIT (E) is curable. The ld. CIT (A) in the ex parte order dated 10.03.2025, without gathering the information about the fate of ITAT appeal and status of application for registration before RPT Act, 1959, dismissed the appeal of the assessee without deciding the matter on merit. Aggrieved by the order of ld. CIT (A), the assessee has come in appeal before us on the grounds reproduced herein above.

Before us, the ld. AR of the assessee submitted his ground-wise written submissions, which are being reproduced hereunder :-

The assesse trust was constituted under the Rajasthan SocietiesRegistration Act, 1958 and registered under that Act on 22.06.2018. It was granted provisional registration u/s 12A(1)(ac)(vi) of the IT Act,1961 on 27.05.2021 from AY 2021-22 to AY 2023- 24. However, its application for permanent registration was refused vide order dt.30.01.2024 due to non-registration under the RPT Act, 1959.

The Ld. CIT(E) in view of the above direction of Hon’ble ITAT vide order dt.25.07.2025 (PB 8-12) granted registration to the assessee for AY 2020-21 to 2024- 25 after considering the fact that the assessee is registered under RPT Act, 1959 (PB 13).

The AO has assessed the income of the assessee only for the reason that CIT(E), Jaipur has rejected the application for registration u/s 12AB of the IT Act, 1961. However, since, Ld. CIT(E), in pursuance to the direction of the Hon’ble ITAT has granted registration to the assessee u/s 12AB of the Act, the addition made by AO be deleted and he be directed to assess the total income at nil after allowing exemption u/s 11 of the Act.

It is submitted that gross receipt cannot be charged to tax. What can be charged to tax is the surplus left after allowing deduction of expenditure against the gross receipt. This is also recognized by insertion of sub section (10) to section 13 of the Act which provides that income chargeable to tax shall be computed after allowing the deduction for the expenditure incurred in India for the objects of the trust. Hence, taxing of gross receipt is incorrect.”

We have heard the rival submissions, perused the material on record and gone through orders of the lower authorities. We noted that Ld. CIT (A) has dismissed the appeal on account of non-compliance of notices without deciding the appeal on merit. Hon’ble Bombay High Court in the case of CIT vs. Premkumar Arjundas Luthra (HUF) (2016) 240 Taxmann 133 (Bom.) has held that the law does not empower the CIT(A) to dismiss the appeal for non-prosecution. Hon’ble Kerala High Court also in the case of Kerala State Service Pensioners Co-operative Society Ltd. vs. ITO & Ors. (2023) 230 DTR 209 (Kerala) has held that Appellate authority cannot dismiss an appeal for non-prosecution, instead has to decide the matter on its merits. We, therefore, placing reliance on the judgments of the Hon’ble High Courts, supra, are of the view that the appeal of the Assessee is to be decided on merit. We further noted that in pursuance to the direction of the Coordinate Bench of the Tribunal, Jaipur vide order dated 30.10.2024 in the ld. CIT (E) has granted registration to the Assessee under section 12AB of the Act, vide order dated 25.07.2025. Hence, the order of the AO denying exemption under section 11 of the Act on the ground that the Assessee is not registered under section 12AB of the Act do not survive. We therefore, direct the AO to allow exemption to the assessee under section 11 of the Act and assess the total income of the assessee at Nil.