INTERNATIONAL SOCIETY FOR LIFE SCIENCES ,JAIPUR vs. CIT EXEMPTION, JAIPUR, JAIPUR

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 30-12-2024 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:-

2. The ld. CIT(E) erred in law and on facts in cancelling the provisional registration granted u/s 12A(1)(ac)(vi) of the Income Tax Act, 1961.

U/S 80G of I.T. Act, 1961 1. The ld. CIT(E) erred in law and on facts in rejecting the application for permanent registration u/s 80G of the Income Tax Act, 1961.

2.1 Apropos to the ground 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:-

 Non registration under Rajasthan Public Trust Act, 1959.  Discrepancy in dissolution clause.  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 INTERNATIONAL SOCIETY FOR LIFE SCIENCES VS CIT (EXEMPTION), JAIPUR 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 04.04.2022 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 ground 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:- 02. Approval u/s 80G cannot be granted without registration u/s 12AB. 2.1 As per rule 11A 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 I.T. Act, 1961. Vide this office order No ITBA//EXM/F/EXM45/2024- 25/1071662356(1) dated 30-12-2024. In view of above discussion, the application in Form No.10AB seeking exemption u/s 80G is liable to be rejected 03. 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 28.06.2022 is also being cancelled. Further assessee has failed to give proper justification for regularization of provisional approval, thus with this order provisional approval is also lapsed and cancelled.’’ 2.3 During the course of hearing, the ld. AR of the assessee in the above appeals mainly submitted that the assessee was not provided adequate opportunity INTERNATIONAL SOCIETY FOR LIFE SCIENCES VS CIT (EXEMPTION), JAIPUR of being heard by the ld. CIT(E). The ld.AR of the assessee submitted that the appeals may be set aside to the file of the ld. CIT(A) to pass order after providing sufficient opportunity of being heard and to accept and consider the certificate under RPT Act, 1959. 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 applied for Registration under Rajasthan Public Trust, 1959 on 26-07- 2024 and the same is under final stage of disposal by the Assistant Commissioner-1 Devsthan Vibhag, Jaipur. As regards the other queries like discrepancies of dissolution issue and genuineness of activities, the INTERNATIONAL SOCIETY FOR LIFE SCIENCES VS CIT (EXEMPTION), JAIPUR assessee trust is directed to submit all the 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 discrepancy of dissolution clause 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.