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Facts
The appellant challenged an order by the learned CIT(E) dismissing their application under Section 12AB of the Act. The dismissal was based on grounds including incomplete Form 10AB, non-submission of a deed, issues related to the Rajasthan Public Trust Act, 1959, and the genuineness of activities. The appeal was filed with a delay of 442 days.
Held
The Tribunal condoned the delay in filing the appeal, noting the appellant's mistaken belief regarding the necessity of RPT Act registration. The matter was remanded to the CIT(E) for a fresh decision on the Section 12AB application, requiring the appellant to provide all necessary details and documentation.
Key Issues
Whether the delay in filing the appeal is sufficiently explained and if the application under Section 12AB should be decided afresh by the CIT(E).
Sections Cited
12AB
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRIGAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER .
By way of present appeal, which is accompanied by an application seeking condonation of delay, appellant has challenged order dated 16.02.2024, passed by Learned CIT(E), feeling aggrieved by dismissal its application u/s 12AB of the Act, on the following three grounds:- • Incomplete Form 10AB & Non submission of deed. • Rajasthan Public Trust Act, 1959. • Genuineness of Activities. be filed 442 days after the prescribed period of limitation.
In this situation, first of allapplication seeking condonation of delay hasbeen heard.
Ld. AR for the applicant has submitted that the representative of the applicant trust was under the belief that registration of the trust, under RPT Act, 1959 was essential for filing of appeal before this Appellate Tribunal; that certificate of registration under said Act was received on 19.05.2055, and it was only thereafter that the appeal was filed.
Therefore, Ld. AR has contended that for this sufficient cause, delay in filing of the appeal may be condoned.
The application is supported by affidavit of the Secretary of the appellant trust, in which he has justified about the above said sufficient cause in late filing of the appeal.
Ld. DR for the department has neither challenged the contents of the affidavit nor condonation of delay.
Having regard to the fact that representative of the assessee was under mistaken belief that registration of the applicant trust is also essential for the purpose of filing of the present appeal, and it appears that the this point, this application is hereby allowed.
Arguments have also been advanced on merits today itself. File perused.
As regards the ground that the applicant trust was not registered under RPT Act, 1959 in APJ Abdul Kalam Education and Welfare Trust vs. CIT(E), decided on 15.01.2025, Co-ordinate Bench of ITAT, Jaipur, hasheld that for purposes of registration of such institutions, u/s 12AB of the Act, registration under RPT Act, 1959 is not one of the essential requirements.
Even otherwise as alleged in the application, the applicant trust stands registered under the said Act w.e.f. 19.05.2025. It is submitted that that matter may be remanded for afresh decision on the application, as regards other two grounds, reason being that the applicant could not comply with certain directions issued by Learned CIT(E) and further that the certificate regarding registration under RPT Act shall also be submitted to Learned CIT(E).
One of the grounds for rejection of the application u/s 12 AB is that genuineness of the activities of the applicant trust could not be verified, issued to the applicant trust, and 3 opportunities having been granted. .
As is available from the impugned order, in para 4.1, Learned CIT(E), observed non furnishing of certain details/documents, due to which genuineness of the activities could not be verified.
Application U/s 12AB of the Act was submitted online on 20.09.2023.The impugned order was passed on 16.02.2024. It appears that due to time line for disposal of such like application, the applicant trust could not get sufficient time to comply with certain directions issued by Learned CIT(E).
Having regard to the fact that the applicant claims itself to be a trust, we deem it a fit case to restore the application u/s 12AB to the files of Learned CIT(E) for decision of the said issue afresh, after providing reasonable opportunity of being heard to the applicant trust.
As regards another ground of rejection that the application under Section 12 AB was incomplete on certain aspects, suffice it to observe that the applicant trust shall do the needful in this regard before Learned CIT(E) so that the application is complete in all respects and maintainable in the given form.
In view of the above discussion, this appeal is disposed of, for statistical purpose and matter is remanded to Learned CIT(E) for decision of the abovesaid two issues afresh, after providing reasonable opportunity
Since the applicant trust did not comply with certain directions issued by Learned CIT(E) and the matter has to be restored, as noticed above, the applicant is burdened with costs of Rs. 2,000/-to be deposited with Prime Minister’s National Relief Fund, and produce receipt before Learned CIT(E) before commencement of proceedings there on remand.
File be consigned to the record room after the needful is done by the office.
Order pronounced in the open court on 29/09/2025.
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