MAHATMA SHERANATH JI GOSHALA SAMITI,JHUNJHUNU vs. THE CIT EXEMPTION, JAIPUR, JAIPUR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Mk0 ,l- lhrky{eh]U;kf;dlnL; ,oaJhjkBksMdeys'kt;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 116 & 117/JP/2025 U/S 12AB & 80G of the Act fu/kZkj.k o"kZ@Assessment Year : - cuke Mahatma Sheranath Ji Goshala Samiti The CIT (Exemption) Repswalon Ka Mohalla Village Dhigal Vs. Jaipur Ramgarh Shekhawati, S.O. Rookansar Jhinjhunu 333 041 (Raj) LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAJAM 8329 G vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Ms. Radhika Agarwal (Proxy) jktLo dh vksjls@Revenue by: Shri Ajey Malik, CIT-DR (Thru:VC) lquokbZ dh rkjh[k@Date of Hearing : 2/07/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 18/07/2025 vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M.

Both these appeals have been filed by the assessee against two different orders of the Ld.CIT (Exemption), Jaipur dated 30-11-2024 passed under section 12AB and 80G of the Income Tax Act, 1961 respectively. The grounds of appeal raised by the assessee in the above mentioned appeals are as under:-

& 117/JP/ 2025 MAHATMA SHERANATH JI GOSHALA SAMITI VS CIT (E), JAIPUR U/S 12AB of I.T. Act, 1961 1. On the facts and circumstances of the case, the Ld. CIT (Exemption) grossly erred in law and facts by rejecting the application of assessee for registration under Section 12AB without affording it a reasonable opportunity of being heard. Thus, the order so passed is against the principles of natural justice and thus hereby prayed for being quashed 2. On the facts and circumstances of the case, the Ld. CIT Exemption Jaipur grossly erred in law and facts by rejecting the application of assesse for final registration against the provisions of law which allow such rejection only on grounds of non genuineness of activities of trust or non compliance with any other law as are material for assessee's objectives. Hence, it is hereby prayed to quash the order so passed.

3. On the facts and circumstances of the case, the Ld. CIT (Exemption) grossly erred in law and facts by rejecting the application of assessee for registration under Section 12AB on the ground of mere non registration of trust under Rajasthan Public Trust act without of any erroneous making observation on materiality of such non compliance on achievement of the objects of the trust. Further, such rejection was made on the basis interpretation of Honorable Supreme Court Judgement in the case of New Noble Education Society. It is thus hereby prayed for quashing the rejection order so passed and order for grant of registration. It is also hereby prayed that assessee has already applied for said registration now.

4. On the facts and circumstances of the case, the Ld. CIT Exemptions grossly erred in law and facts by rejecting the application of assesse for registration U's 12AB on ground of non genuineness of activities of trust ignoring the fact that assesse has already provided sufficient details with its provisional registration application in support of same. It is hereby thus prayed to allow the registration application of assessee and quash the order of rejection so passed.

2. On the facts and circumstances of the case, the ld CIT(E) has grossly erred in law and facts by rejecting the application of assessee seeking approval u/s 80G on the ground of rejection of assessee’s application for registration u/s 12AB when such rejection was itself not as per provisions of law. It is hereby thus prayed for quashing the said rejection order and direct for accepting the application so made by the assessee.

3. On the facts and circumstances of the case. The Ld. CIT(Exemption) grossly erred in rejecting the application made by the for seeking exemption under Section 80G without affording reasonable opportunity of being heard to the assesse and without considering the reply of the assessee. It is thus hereby prayed for quashing the said rejection order so made as it was against the principles of natural justice. 4.

& 117/JP/ 2025 MAHATMA SHERANATH JI GOSHALA SAMITI VS CIT (E), JAIPUR 2.1 Apropos to the grounds so raised by the assessee in the ld. CIT(E) rejected the assessee’s claim of registration u/s 12AB of the Act by observing as under:- ‘’05. In view of above discussion assessee’s claim of registration section 12AB is liable to be rejected and thus being rejected on following grounds:-

 Incomplete Form 10AB  Non registration with RPT Act, 1959.  Non Genuineness of activities

06. Further 12AB (1)(b)(ii) (B) of the Income Tax Act, 1961 also state that if CIT is not satisfied has to pass order rejecting such application and also cancelling its earlier registration. Thus, it is clarified that applicant's provisional registration under clause (vi) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961 dated 10.03.2022 is also being cancelled. Further assessee has failed to give proper justification for regularization of provisional registration, thus with this order provisional registration is also cancelled.’’ 2.2 Apropos to the grounds so raised by the assessee in the ld. CIT(E) rejected the assessee’s claim of exemption u/s 80G of the Act by observing as under:-

‘’03. In view of above discussion assessee’s claim of approval u/s 80G if liable to be rejected and thus being rejected on following grounds:-

& 117/JP/ 2025 MAHATMA SHERANATH JI GOSHALA SAMITI VS CIT (E), JAIPUR  Approval u/s 80G cannot be granted without registration u/s 12AB.

3. Devsthan Vibhag and Registration Certificate. 4. Member KYC (Aadhar and PAN Card). 5. Property papers. 6. Cooperative Department Application and Certificate.

Conclusively, the ld AR of the assessee prayed that the assessee trust may be provided one more opportunity to the contest the case before the ld CIT(E) and restore the appeals to the file of ld CIT(E) for afresh adjudication as the assessee was ex-parte before the ld. CIT(E). 2.4. Per contra, the ld. DR relied on the orders of the ld. CIT(E). 2.5 After hearing both parties and perusing the materials available on record, we noticed that the ld. CIT(E) has rejected the assessee’s claim of registration u/s 12AB of the Act. It is also noticed that the ld.CIT(E) has cancelled the provisional registration of the assessee for the reason that the assessee trust had failed to give proper justification for regularization of provisional registration. The prayer of the ld.AR of the assessee was that the assessee may be provided one more chance to adduce the documents before the ld. CIT(E) to resolve the issue in question and the assessee trust has obtained Registration under Rajasthan Public Trust, 1959 on 28-03-2024 from the office of the Assistant Commissioner-II Devsthan Vibhag, Jaipur. As regards the other queries like Incomplete Form 10AB and genuineness of activities, the assessee trust is directed to submit all the & 117/JP/ 2025 MAHATMA SHERANATH JI GOSHALA SAMITI VS CIT (E), JAIPUR desired documents before the ld. CIT(A) with a view to resolving the issue. Therefore, in these circumstances, we restore the matter back to the file of the ld. CIT(E) with the direction that as and when the assessee trust produces the copy of the Registration under RPT Act, 1959 and other documents required by him then the application of the assessee trust for registration u/s 12AB of the Act be decided afresh in accordance with law. The assessee trust is also directed to produce the documents relating to Incomplete Form 10B and the genuineness of the activities etc. before the ld CIT(E) 2.6 Since we have restored the appeal of the assessee with regard to the registration u/s 12AB of the Act to the file of the ld. CIT(E) for afresh adjudication, therefore, the outcome of appeal of the assessee u/s 80G of the Act is consequential in nature. 2.7 Before parting, we may make it clear that our decision to restore the matter back (supra) to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law.