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Facts
The assessee, APJ Abdul Kalam Education and Welfare Trust, filed an appeal against the order of the CIT(E) which rejected its approval under Section 80G(5) and cancelled its provisional registration. The CIT(E) cited reasons such as absence of regular registration u/s 12A, non-registration under the RPT Act 1959, and failure to demonstrate genuineness of activities.
Held
The Tribunal noted that a co-ordinate bench had already restored the appeal regarding Section 12AB registration to the CIT(E) for fresh adjudication. Therefore, the outcome of the appeal concerning Section 80G is consequential and does not require interference, as it correlates with the Section 12AB appeal.
Key Issues
Whether the denial of approval under Section 80G(5) by the CIT(E) was justified, considering the pending appeal for Section 12AB registration which was restored for fresh adjudication.
Sections Cited
80G(5), 80G(5)(vi), 80G(5)(iii), 12A, RPT Act 1959, 12AB(1)(b)(ii)(B), 12AA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A’’ JAIPUR
fu/kZkj.ko"kZ@AssessmentYear : 2023-24 cuke APJ Abdul Kalam Education And Welfare Trust The CIT(Exemption) 3GA7, Housing Board, Shastri Nagar Vs. Jaipur Jaipur – 302 016 LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR No.: AAJTA 3141 K vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri Deepak Sharma, CA (Thru: V.C.) jktLo dh vksjls@Revenue by : Shri Rajesh Ojha, CIT -DR a lquokbZ dh rkjh[k@Date of Hearing : 09/07/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 15 /07 /2025 vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M.
This appeal filed by the assessee is directed against order of the ld. CIT(E), Jaipur dated 26-12-2024 raising therein following grounds of appeal. ‘’1. The impugned order dated 26-12-2024, which rejects the approval u/s 80G(5) and cancels the provisional registration u/s 80G(5)(vi) of the Act, is legally and factually flawed. It suffers from a lack of jurisdiction and several other deficiencies, and as such, it ought to be completely quashed.
2. The ld. CIT (Exemption) has erred in denying the approval sought u/s 80G(5)(iii) of the Act and in revoking the provisional registration granted u/s 80G(5)(vi) of the Act, dated 03.08.2022, This action is unlawful, unjustified, and arbitrary. Such denial being contrary to the both the provisions of law and facts on record, the registration as prayed, kindly be granted.
3. The ld. CIT (Exemption) has further erred, both in law and on the facts of the case, by denying the registration sought u/s 80G(5) of the Act on the grounds of the absence of regular registration u/s 12A and non-registration under the RPT Act, 1959. In light of this, it is respectfully requested that the Id. CIT (Exemption), Jaipur, be directed to grant the registration as sought.
The ld. CIT (Exemption) further erred, both in law and on the facts of the case, by denying the registration sought us 80G(5) of the Act on the grounds that the appellant failed to demonstrate the genuineness of its activities and did not fulfill the conditions stipulated under the provisions. Such findings are contrary to the provisions of law and the facts on record. Therefore, it is respectfully requested that the Id. CIT (Exemption), Jaipur, be directed to grant the registration as sought.’’ 2.1 Apropos grounds of appeal
of the assessee trust, it is noticed that the ld. CIT(E) has rejected application of the assessee trust u/s 80G of the Act by observing as under:- ‘’05. The assessee has failed to furnish requisite details/documents/activities/evidences etc. in support of its claim in form No. 10AB. In view of above discussion assessee's claim of approval under section 80G(5) is liable to be rejected and thus being rejected on following grounds: - Absence of regular registration u/s 12A Non registration with RPT Act 1959 Genuineness of Activities
5. Further 12AB (1)(b)(ii)(B) of the Income Tax Act, 1961 also state that if CIT is not satisfiedhas to pass order rejecting such applicationand also cancelling its earlier registration. Thus, it is clarified that applicant's provisional registration under clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 dated 03.08.2022 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 During the course of hearing, the ld.AR of the assessee has drawn the attention of the Bench that ITAT Jaipur Bench in vide its order dated 15-01-2025 in the case of the assessee trust i.e. APJ Abdul Kalam Education and Welfare Trust had passed the following order:- ‘’16. In view of the facts discussed (supra) alongwith decision of the Hon’ble Apex Court in the case of Rural Education and Women Welfare Society Sas Nagar, we are of the opinion that the observations of the Ld. CIT (E), Jaipur are baseless and can’t be used against the assessee to refuse registration u/s. 12AA of the Act. In the result, it is found that the observations of the Ld. CIT (E), Jaipur has no legs to stand and the activities of the assessee are not under any challenge, which warrants rejection of registration. Relevant ground on this issue raised by the assessee is allowed and the Ld. CIT (E), Jaipur, directed to accept the reply of the assessee in Toto.
In the result, the appeal of the assessee is allowed for statistical purposes.
He further submitted that the assessee trust has already applied for registration under RPT Act, 1959 and the same shall be submitted before the ld. CIT(E) as soon as it is received. He further submitted that the issue of registration/s 12AB is still pending before the ld.CIT(E) and no communication has been received from the ld. CIT(E) so far as to the order passed by the ITAT Jaipur Bench dated 15-01- 2025 (supra) relating to registration of the trust u/s 12AB of the Act. 2.3 On the other hand, the ld. DR supported the order of the ld CIT(E). 2.4 We have heard both the parties and perused the materials available on record. It is pertinent to mention that since this co-ordinate bench has already 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 vide order dated 15-01- 2025 (supra), therefore, the outcome of appeal of the assessee u/s 80G of the Act is consequential in nature and it does not require any interference by the Bench as it correlates to the appeal of the assessee u/s 12AB of the Act. The ld. CIT(E) is directed to dispose of this appeal of Section 80G alongwith with the appeal of the assessee trust u/s 12AB of the Act. 3.0 In the result, the appeal of the assessee is allowed for statistical purposes Order pronounced in the open court on 15 /07/2025. Sd/- Sd/- ¼jkBksM deys'kt;UrHkkbZ ½ ¼MkWa-,l-lhrky{eh½ (RATHOD KAMLESH JAYANTBHAI) (Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member U;kf;dlnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 15 /07 /2025 *Mishra आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- APJ Abdul Kalam Education and Welfare Trust,Jaipur 2. izR;FkhZ@The Respondent- The ld. CIT(E), Jaipur. 3. vk;djvk;qDr@CIT 4. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 5. xkMZQkbZy@Guard File { } vkns'kkuqlkj@By order
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