DR RAMLAL THAREJA MEMORIAL HEALTH AND WELFARE SOCIETY,ALWAR vs. THE CIT EXEMPTION, JAIPUR
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर
IN THE INCOME TAX APPELLATE TRIBUNAL,
JAIPUR BENCHES,”A” JAIPUR
Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa a Jh xxu Xkks;y ys[kk lnL; ds le{k
BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI GAGAN GOYAL, AM vk;dj vihy la-@ITA No. 1405/JP/2024
U/S 12AB of the Act fu/kZkj.k o"kZ@Assessment Year : 2024-25
LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AACAD3833 D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri Kranti Mehta, CA jktLo dh vksjls@Revenue by: Shri Rajesh Ojha, CIT-DR lquokbZ dh rkjh[k@Date of Hearing
: 26/05/2025
mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 04/06/2025
vkns'k@ORDER
PER: DR. S. SEETHALAKSHMI, J.M.
This appeal is filed by the assessee against the order of the Learned
Commissioner of Income (Exemption), Jaipur [hereinafter referred to as “ld.CIT(E)”] dated 30.09.2024 passed u/s 12AB of the Income Tax Act,
1961 (hereinafter referred to as “Act”)
2. The assessee has raised the following grounds of appeal:-
‘’1. The ld. CIT(E) Jaipur has erred in rejecting the application for renewal of registration u/s 12AB even when the 2
DR RAMLAL THAREJA MEMORIAL HEALTH AND WEL FARE SOCIETY VS CIT (E), JAIPUR appellant has been carrying on its activities according to the objects of the society and the grounds mentioned in the impugned order for rejecting the claim of renewal are trivial and no cogent ground mentioned in the order. Accordingly, the impugned order is bad in law and in facts of the case, hence the applicant’s application for renewal registration deserves to be accepted.
2. The ld CIT(E) Jaipur erred in cancelling the registration granted to the appellant without any cogent reason even when the appellant has been carrying on its activities as per te provisions of the Income Tax Act, 1961. Accordingly, the impugned order cancelling the registration of the appellant u/s 12AB is bad in law and in facts and deserves to be quashed.
3. Brief facts of the case are that the assessee filed online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act,
1961 on 18.03.2024. A letter/notice dated 17.06.2024 was issued at the e- mail/address provided in the application requiring the assessee to submit certain documents/explanations by 26.06.2024. In compliance, the appellant sought adjournment and the case was fixed for hearing on 08-08-
2024 by the ld.CIT(E). In response, the trustee of the applicant with his CA
& AR appeared, furnished reply and the case was discussed with them by the ld. CIT(E). The ld. CIT(E) raised various queries as mentioned by him but the assessee did not furnish the requisite details and supporting documents and had sought adjournment till 27-09-2024. It is noticed that the ld. CIT(E) provided various opportunities to the assessee but the assessee had not provided requisite details. In nutshell, the ld. CIT(A)
3
DR RAMLAL THAREJA MEMORIAL HEALTH AND WEL FARE SOCIETY VS CIT (E), JAIPUR rejected the applicant’s application for registration u/s 12AB of the on following grounds:-
* Assessee having business income and doing business in garb of charity and doing activity beyond the objects of the Trusts.
Registration under Rajasthan Public Trust Act, 1959. Further the ld. CIT(E) cancelled the provisional registration of the assessee trust by observing as under:-
0.5
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 06-04-2023 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.’’
During the course of hearing, the ld. AR of the assessee mainly submitted that the assessee was not provided adequate opportunity of being heard by the ld. CIT(E) and thus the order should be quashed being ex-parte order and against the principles of natural justice. Further, the ld. AR of the assessee trust submitted that it has got registration issued by the Assistant Commissioner (IInd) Devsthan Vibhag, Jaipur Khand, Jaipur under Rajasthan Public Trust Act, 1959and the same is issued by the above authority on 04-10-2024. It is noted that that at the time of 4 DR RAMLAL THAREJA MEMORIAL HEALTH AND WEL FARE SOCIETY VS CIT (E), JAIPUR hearing of the appeal before the ld. CIT(E), the assessee trust had not filed the certificate under RPT Act, 1959. It is pertinent to mention that the ld.AR of the assessee has filed the following documents to support its case as under:- S.N. Particulars Page No. 1. Registration Certificate under Rajasthan Public Trust Act, 1959 01 2. Registration Certificate under Rajasthan Societies Registration Act, 1959 02 3. Constitution and By Laws of the Society 03-10 4. Audit Report for F.Y. 2020-21 11-17 5. Audit Report for F.Y. 2021-22 18-25 6. Audit Report for F.Y. 2022-23 26-35 7. No Objection certificate for using premises for activities of the society 36 8. Photographs of rooms used for Society’s activities 37-40 9. Copies of Patient Register of few months showing details of patients treated free of cost 41-71 10. Details of free Medical Campus organized by the Society in F.Y. 2021-22, F.Y. 2022-23 & F.Y. 2023-24 72-77
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 appeal to the file of ld CIT(E) for afresh adjudication as the assessee was ex-parte before the ld. CIT(E)
5. Per contra, the ld. DR relied on the order of the ld. CIT(E).
6
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 on following grounds:-
5
* Assessee having business income and doing business in garb of charity and doing activity beyond the objects of the Trusts.
Registration under Rajasthan Public Trust Act, 1959. 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. .
Therefore, in these circumstances, we restore the matter back to the file of the ld. CIT(E) with the direction to decide the issue afresh as to registration u/s 12AB of the Act in accordance with law as the assessee trust has been issued certificate by Assistant Commissioner (IInd) Devsthan
Vibhag, Jaipur Khand, Jaipur on 4-10-2024 under Rajasthan Public Trust Act. The assessee trust is also directed to produce the documents relating to business income as well as charitable activities and objects of the trust before the ld CIT(E). Hence, in this view of the matter, the appeal of the assessee trust is restored to the file of the ld CIT(E) for afresh adjudication by providing one more opportunity of being heard and the assessee is directed to submit the desired documents before the ld. CIT(E) for resolving the issue in question..
6
Order pronounced in the open court on 04 /06/2025. ¼xxu Xkks;y ½
¼ Mk0 ,l- lhrky{eh ½
(Gagan Goyal)
(Dr. S. Seethalakshmi) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member
Tk;iqj@Jaipur fnukad@Dated:- 04/06/2025
*Mishra
आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
1. The Appellant- Dr. Ramlal Thareja Memorial Health and Welfare Society, Alwar
2. izR;FkhZ@ The Respondent- The CIT(E), Jaipur
3. vk;dj vk;qDr@ The ld CIT
4. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत
5. xkMZ QkbZy@ Guard File (ITA Nos. 1405/JP/2024) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेज. त्महपेजतंत