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

The appellant craves to alter, amend and modify any ground of appeal.

Necessary cost be awarded to the assessee.”

We find that the appeal filed by the assessee is delayed by 91 days. The assessee has filed application submitting therein the reasons for delay in filing the appeal and prayed for condonation of delay. In support of the application, the assessee has also filed an Affidavit dated 26th August, 2025 duly sworn in before the Notary Public, for condonation of delay, which is being reproduced hereunder :-

That I am President of Gau Jeev Parmarth Sewa Sanstha. The trust was incorporated on 22.06.2018 at Alwar, Rajasthan with objects of providing medical relief to ill & destitute animals.

That I had filed an application for grant of permanent registration u/s 12AB on 01.07.2023. The ld. CIT (E) vide order dt. 30.01.2024 rejected the application on the ground that the trust is not registered under Rajasthan Public Trust Act, 1959. 3. That against the above order, I had filed an appeal before Hon’ble ITAT on 21.03.2024. During the course of hearing our counsel CA P.C. Parwal submitted that the trust has filed an application for registration under RPT Act, 1959 on 14.03.2024. 3 Gau Jeev Parmarth Sewa Sanstha, Alwar.

That the trust was granted registration under Rajasthan Public Trust Act, 1959 vide certificate dt. 14.07.2025. Accordingly ld. CIT (E) vide order dt. 25.07.2025 granted registration u/s 12AB from AY 2020-21 to 2024-25. 5. That the AO passed the assessment order of the trust for AY 2022-23 on 07.03.2024 at total income of Rs. 16,09,233/- by denying exemption u/s 11 claimed by the trust on the ground that the trust is not registered u/s 12AB. Against this order, appeal was filed before ld. CIT (A) on 17.07.2024. 6. That National Faceless Appel Centre passed the appellate order ex-parte on 10.03.2025 for the reason that assessee has not complied to the notices.

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.

That now I have received the registration certificate under RPT Act dt. 14.07.2025 and order of CIST (E) dt. 25.07.2025 granting registration u/s 12ABH and thus I am filing the appeal before Hon’ble ITAT along with the request to condone the delay in filing the appeal.

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. Deponent ( Mahendra Saini ) 5. 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 5 Gau Jeev Parmarth Sewa Sanstha, Alwar.

The Ld. CIT(A) at Pg.19 Para.6 of the order has stated that assessee was issued 3 notices dt.15.10.2024, 28.11.2024 and 10.12.2024 but none of these notices were complied with. No tangible details, documents or submission have been provided to come to any conclusion other than those arrived at by the AO in the order. Therefore, the Ld. CIT(A) vide order dt.10.03.2025 without deciding the appeal on merit, dismissed the appeal filed by the assessee.

It is submitted that in Form No.35, assessee has specifically pointed out that it has filed an appeal on 20.03.2024 before Hon’ble ITAT against the order of CIT(E) rejecting the registration u/s 12AB of the Act and it has also applied for registration under the RPT Act, 1959. The Ld. CIT(A), even in the ex parte order, ought to have 6 Gau Jeev Parmarth Sewa Sanstha, Alwar.

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. 7 Gau Jeev Parmarth Sewa Sanstha, Alwar.

Against the rejection order dt.30.01.2024, assessee filed appeal before Hon’ble ITAT, who vide order dt.30.10.2024 (PB 1-7) set aside the matter to Ld. CIT(E) to decide afresh.

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.

From the Income & Expenditure A/c (PB 15) it can be noted that against gross receipts of Rs.16,09,233/-, assessee incurred expenditure of Rs.9,77,547/- and thus declared surplus of Rs.6,31,686/-. The AO without considering the expenditure has taxed the gross receipt of Rs.16,09,233/-.

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.”

On the other hand, the ld. DR relied on the orders of the lower authorities. The ld. DR submitted that the order of the ld. CIT (A) be sustained. 8. 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 ITA No. 333/JPR/2024, 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

vk;djvk;qDr@ The ld CIT 4. vk;dj vk;qDr@ The ld CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File ITA No. 1203/JPR/2025) vkns'kkuqlkj@ By order,