SAMAJ SEVA SANSTHA,JAIPUR vs. CIT EXEMPTION, JAIPUR, JAIPUR
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर
IN THE INCOME TAX APPELLATE TRIBUNAL,
JAIPUR BENCHES,”B” JAIPUR
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BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 229 & 220/JP/2025
u/s 12AB and 80G of the Act fu/kZkj.ko"kZ@AssessmentYear : 2025-26
Samaj Seva Sanstha
B-1, Officer Campus, Gate No. 4
Rajbhawan Civil Lines, P.W.D. Office
Jaipur – 302 006 (Raj) cuke
Vs.
The CIT-Exemption,
Jaipur.
LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: ABDTS 3382D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri Shailesh Mantri, CA jktLo dh vksjls@Revenue by: Mrs. Alka Gautam, CIT-DR lquokbZ dh rkjh[k@Date of Hearing
: 04/06/2025
mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 23 /06/2025
vkns'k@ORDER
PER: DR. S. SEETHALAKSHMI, J.M.
These are two appeals filed by the assessee against two different orders of the Ld.CIT (Exemption), Jaipur both dated
28-12-2024 passed under section 12AB and 80G of the Income Tax
Act, 1961 respectively. The grounds of appeal raised by the assessee in both the appeals are as under:-
ITA No. 229/JP/2025 U/s 12AB of I.T. Act, 1961
‘’That the ld. CIT(E), Jaipur has erred in facts and in law by cancelling the application u/s 12AB(1)(b)(ii)(B) for permanent registration and also canceling the provisional approval u/s 12A(1)(ac)(vi) of Income Tax Act, 1961. ITA No. 220/JP/2025 U/s 80G of I.T. Act, 1961
‘’That the ld. CIT(E), Jaipur has erred in facts and in law by cancelling the application u/s 80G(5) for permanent registration and also canceling the provisional approval under clause (iv) of the second proviso to sub section (5) of Section 80G of the Income Tax Act, 1961
1 Apropos to the ground so raised by the assessee in ITA No. 229/JP/2025, the ld. CIT(E) rejected the assessee’s claim of registration u/s 12AB of the Act by observing as under:- ‘’5. Please submit details of all activities undertaken by you to prove the genuineness of the activities of the trust in absence of which your activities could not ascertained genuine and your application may be rejected on non-genuineness and non-compliance.
Many other objects are having potential to be used for commercial. No clause in deed which say activities would be free or at cost, in above of same such objects can be exploited for business purpose. Why application should not be rejected.
In view of above facts, you are requested to please explain as to why your application for registration u/s 4A may not be rejected?
Thereafter, a reminder/opportunity letter was also given to the applicant vide dated 11.12.2024 wherein hearing of case was fixed on 16.12.2024. In response to above, the applicant has furnished its reply and furnished only trust deed, trustee details,
RPT registration, final accounts for F.Y. 2023-24, bank statements for the period of 09.11.2023 to 30.03.2024, NOC for 13(3) persons, copy of provisional registration, two bills of chana dal purchase, ITR acknowledgment. The reply of the assessee is examined
19.07.2024 to till dated more than 3 months has over but the applicant has not furnished complete details to proving genuineness of the trust. Hence, it is clear that the activities of the applicant trust are not genuine and conclusion drawn from above is under:-
The applicant trust has claimed huge salary of Rs. 4,56 000/- in F.Y. 2023-24 to Sh. Subhash Chand, Sh. Dinesh Chand & Pooja Dayama. It is pertinent to mention here that in the F.Y. 2023- 24, the applicant not organized any in the I/E account for only work shown i.e. distribution of food during mela, women day celebration (no proof) but shown 50% expenses on which this huge salary has been paid and also the applicant trust not furnished details of work done by these persons. Thus, its claim of huge salary payment to related persons without explain the services provided these persons and siphoning off the income of the trust to the related persons.
Only one work of Khatu Shyam Mela Sewa Exp. carried out, but claimed salary of Rs. 4,56,000/- in FY 2023-24 is not justifiable and no justification has been given by the applicant.
No detail notes on charitable activities carried out by the applicant trust in F.Y 2022-23 to till date.
No proof of bills for other year, the assessee has submitted bills & vouchers for 4. F.Y 2021-22 only,
No ledger accounts.
The applicant has not furnished proper bills & vouchers, proof of women's day celebration exp. etc to prove genuineness of the trust.
It is amply clear from the facts of the case and above discussion that, the assessee trust is retrieving salary expenses of the trust for their own personal use and is not using the same for charitable purposes. The applicant has also not submitted any evidence of the retrieved salary expenses being used for charitable purposes. Therefore, it is concluded that the trust is in specified
SAMAJ SEVA SANSTHA VS CIT (E), JAIPUR violation by giving benefit to the specified persons and not applying income of trust for the purpose other than objects of the trust, thus it is specified violation under clause (a) of Explanation below of section 12AB(4) of the IT Act, 1961 therefore, the case falls out of the scope of registration u/s 12A.
Hence from the above it is clear that the activities are not verifiable and it could 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.
In view of above discussion applicant's application for registration u/s 12AB is liable to be rejected and thus being rejected on following grounds:-
Non-Genuineness of activities.
Further 12A(1)(ac)(iii) 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 08.09.2022 is also being cancelled. Further assessee has failed to give proper justification for regularisation of provisional registration, thus with this order provisional registration is also lapsed and cancelled.’’
2 Apropos to the ground so raised by the assessee in ITA No. 220/JP/2025, the ld. CIT(E) rejected the assessee’s claim of exemption u/s 80G of the Act by observing as under:- ‘’02. Approval u/s 80G cannot be granted without registration u/s 12AB
1. As per rule 11AA of the Income Tax Rule, 1962, the registration u/s 12A/12AB or notification u/s 10(23C) is a precondition for granting approval u/s 80G of the IT Act, 1961. Vide this office order No. ITBA/EXM/F/EXM43/2024-25/1071652908(1) dated 28.12.2024. Also, during the present proceedings, the applicant has also failed to furnish any replies, thus, genuineness of activities and all the above issues remains Thus, the claim of the applicant u/s 80G is liable to rejected on this issue on following grounds:-
Non-Genuineness of activities.
In view of above discussion, the application in form No. 10AB seeking exemption u/s 80G is liable to be rejected.
In view of above discussion assessee's claim of approval u/s 80G is liable to be rejected and thus being rejected on following grounds -
Approval u/s 80G cannot be granted without registration u/s 12AB.
Further 2nd proviso to 80G(5) also state that if CIT is not satisfied has to pass order rejecting such application and also cancelling its earlier approval. Thus, it is clarified that applicant provisional approval under clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act. 1961 dated 14.09.2022 is also being cancelled. Further assessee has failed to give proper justification for regularisation of provisional approval, thus with this order provisional approval is also lapsed and cancelled.’’
3 During the course of hearing, the ld. AR of the assessee mainly submitted that the assessee the ld. CIT(E) has not considered the complete documents and details of activity carried out by the assessee and cancelled the registration and the ld. CIT(E) did not raise any objection in respect of the objects of the assessee sanstha. The detailed written submission as made by the ld.AR of the assessee sanstha before the Bench is reproduced as under:- 1. The assessee is registered society incorporated on 22/03/2013, registered with sub