WOMEN CHILDREN WELFARE AND RURAL DEVELOPMENT SOCIETY,AJMER vs. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR, JAIPUR

Arguments heard. File perused. Contentions Non Registration under Rajasthan Public Trust Act, 1959.

As regards this ground of rejection of the application, Ld. AR for the appellant submitted that the appellant has got itself registered under RPT Act, 1959. In this regard, he has relied on photocopy of certificate dated 08.01.2025 issued by the competent authority. Ld. AR further submits that the application for registration under RPT Act, 1959 was filed by the applicant before the competent authority during pendency of the application u/s 12A(1)(ac)(iii) of the Act before Learned CIT(E), but Learned CIT(E) did not wait for production of said certificate and preferred to dispose of the application. The submission is that said copy of the certificate be taken on record by way of additional evidence, and matter may be restored to the files of Learned CIT(E) for adjudication of other issue.

Ld. DR for the department has no objection to taking on record of copy of certificate issued by the competent authority under RPT Act, 1959.

Accordingly, another opportunity was granted to the applicant by way of show cause notice dated 08.12.2024. Still, the applicant failed to furnish any reply/details. Since four opportunities were granted to the applicant, but all the requisite details were not yet furnished, Learned CIT(E) observed that the applicant had failed to prove the factum of genuineness of its activities. In this regard, at page 18, it was observed as under:-  Not furnished details of bills and vouchers of the activities carried out by the trust and fails to prove that activities are as per objects of the trust.  Not submit the bank transaction details of above Rs. 20,000/- alongwith bank statement.  Not furnish the details of payment made to 13(3) persons.  Not furnish the details of beneficiaries of activities.  Not furnish the copy of final account for F.Y. 2023-24 to till date.  Not furnish whether the trust has taken benefit of section 11, 12 or not.  Not furnish the details of CSR funds.  Non-compliance to the show cause proves that the applicant has no proof regarding genuineness of activities. The applicant not furnished any details like bill/vouchers of activities, ledger accounts, photos etc. which proves that what works/activities has been carried out by the trust. Hence from the above it is clear that the activities are not verifiable and it could not be determined whether the applicant is genuinely carrying out charitable activity and it's cannot be ascertained that activities are as per objects. Therefore, the applicant claim of registration u/s 12AB is also liable to be rejected on ground of not proving its genuineness of activity.”

Faced with the above observations regarding non compliance by the applicant by way of non production of relevant documents and details, Ld. AR for the appellant has submitted that the matter may be restored to the Women Children Welfare and Rural Development Society, Ajmer. files of Learned CIT(E), so as to enable the applicant to comply with all the directions issued by Learned CIT(E).

As noticed above, several opportunities were provided by Learned CIT(E) to the applicant to furnish requisite details/documents, but the applicant failed to comply with those directions, and that is how, Learned CIT(E) was of the view that applicant had failed to prove genuineness of its activities.

In the given situation, when the applicant has obtained certificate under RPT Act, 1959, but, failed to comply with certain specific directions issued by Learned CIT(E), we, in the interest of justice, deem it a fit case to restore the matter i.e. application u/s 12A(1)(ac)(iii) of the Act to the files of Learned CIT(E) with the direction to provide to the assessee another opportunity of being heard to the applicant. Result.

As a result, this appeal is disposed of for statistical purpose, and while setting aside the impugned order dated 19.12.2024, application u/s 12A(1)(ac)(iii) of the Act is restored to the files of Learned CIT(E) with the direction for decision afresh, after affording reasonable opportunity of being heard to the applicant, in accordance with law.