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Facts
The appellant, Global CSR Foundation, filed applications for registration under Section 12A(1)(ac)(iii) and for approval under Section 80G(5)(iii) of the Income Tax Act. These applications were rejected by the CIT(E) because the trust was not registered under the Registration of Trusts Act, 1959 (RPT Act) at the time of filing.
Held
The Tribunal held that since the trust was subsequently registered under the RPT Act and this registration is a prerequisite for registration under the Income Tax Act, the matter should be remanded. The CIT(E) was directed to re-examine the applications after providing the appellant an opportunity to be heard.
Key Issues
Whether rejection of applications for registration under Section 12A and approval under Section 80G was justified solely on the ground of the trust not being registered under the RPT Act at the time of filing, especially when it was subsequently registered.
Sections Cited
12A(1)(ac)(iii), 80G(5)(iii)
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”B-Bench” JAIPUR
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER .
This common order is to dispose of the above captioned 2 appeals as these are interconnected, based on same facts and have been argued together.
Appellant is feeling dissatisfied with order dated 13.12.2024, passed by Learned CIT(E) as thereby its application u/s 12A(1)(ac)(iii) of the & 203/JPR/2025 Global CSR Foundation, Jaipur. Income Tax Act, 1961 (hereinafter referred to as “the Act”) came to be rejected. In this regard, appellant has filed ITA No. 203/JPR/2025.
Rejection of the above said application u/s 12A(1)(ac)(iii) of the Act also led to rejection of an application filed separately u/s 80G(5)(iii) of the Act, in Form No. 10AB, seeking approval of CIT(E). In this regard, appellant has filed .
Arguments heard. Files perused. Contentions 5. Ld. AR for the appellant admits that at the time of filing of and even during pendency of the two applications i.e. 12A(1)(ac)(iii) and u/s 80(5)(iii) of the Act, appellant trust was not registered under the RPT Act, 1959, but he adds that during pendency of the said application, the representative of the trust submitted requisite application before the competent authority, seeking its registration under the Act, 1959. Ld. AR has further submitted that as per latest status as on 24.03.2025, trust stands registered under the RPT Act, 1959. In this regard, Ld. AR for the appellant has relied on the relevant document i.e. photocopy of the application forming part of the paper book presented before Registry of this Appellate Tribunal, on 02.07.2025.
& 203/JPR/2025 Global CSR Foundation, Jaipur. Learned AR has submitted that consequent upon registration of the Trust under the Act, 1959, it has become entitled to registration under the Act, 1961, and as such, the matters may be restored to the files of Learned CIT(E) for decision afresh after providing an opportunity to the applicant of being heard. In support of his submission Ld. AR has also relied on decision in Ananvaya Nyasah vs. CIT(E), & 752/JPR/2024 by a Coordinate Bench of Jaipur Benches, decided 19.12.2024.
On the other hand, Ld. DR for the department has submitted that when the two applications i.e. u/s 12A(1)(ac)(iii) and 80G(5)(iii) of the Act, were filed by the appellant trust, without its registration under the RPT Act, 1959, Learned CIT(E) was justified in rejecting the applications. In support of his contention, Ld. DR has relied on decision in Lokesh Agarwal Dharmarth Charitable Trust vs. CIT(E), 2024) 164 taxmann.com 228 (Jaipur –Tribunal.) Discussion 7. On going through the record, we find that the impugned orders disposed of the two applications on 13.12.2024. In the paper book from page 106 to 108 is available copy of application in Form No. 6, submitted before the competent authority by & 203/JPR/2025 Global CSR Foundation, Jaipur. applicant trust, under Rule 17(2) of the rules framed under the Act, 1959, with prayer for its registration under said Act. As is available from the rubber stamp lying affixed on the very first page of the application, it purports to have been presented to the competent authority on 22.11.2024. In other words, this application was presented before the competent authority, before the impugned orders were passed by Learned CIT(E). It appears that Learned CIT(E) proceeded to dispose of the applications having regard to the time line for their disposal. But, the fact remains that having realized that registration of the appellant trust under the RPT Act, 1959, was one of the requisites for its registration under the Act, 1961, the representative of the trust took steps and applied for its registration. Ultimately, the trust stands registered as is available from copy of the certificate of registration issued on 24.03.2025.
In view of the fact that the application u/s 12A(1)(ac)(iii) of the Act came to be rejected only for want of registration of the trust under the RPT Act, 1959 and having regard to the fact that the applicant is a trust, we deem it a fit case to restore the applications u/s 12A(1)(ac)(iii) of the Act and the other application u/s 80G(5)(iii) of the Act, to the files of Learned CIT(E), for decision afresh after providing an opportunity to the appellant to 203/JPR/2025 are disposed of, for statistical purposes, the impugned orders are set aside and both the above said applications are restored to the files of Learned CIT(E) for decision afresh, in accordance with law, after providing an opportunity to the appellant to submit relevant documents for his consideration. Copy of the common order be placed in the connected appeal file. Files be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 10/07/2025. Sd/- Sd/- ¼ MkWa- ehBk yky ehuk ½ ¼ujsUnz dqekj½ (Dr. M.L. MEENA) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 10/07/2025 *Santosh आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- Global CSR Foundation, Jaipur. 1. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur.