YOG KSEM SEWA NYAS,JAIPUR vs. CIT EXEMPTION, JAIPUR

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ITA 233/JPR/2025Status: DisposedITAT Jaipur05 May 2025AY 2024-25Bench: DR. S. SEETHALAKSHMI (Judicial Member)7 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal noted that the assessee already holds 12A registration, implying charitable status, and considered the grounds for rejection to be curable. The matter was restored to the file of the CIT(E) for fresh consideration, with the tribunal explicitly stating that its decision should not be construed as an expression on the merits of the dispute.

What were the facts?

The assessee, Yog Ksem Sewa Nyas, filed an application for 80G approval, which was rejected by the CIT(E) on the grounds of non-registration under the Rajasthan Public Trust Act, 1959, and alleged non-genuineness of activities due to insufficient documentation. The assessee appealed, arguing that these issues are curable and that it already possesses 12A registration.

What were the issues?

Whether the rejection of 80G registration was justified given the assessee's existing 12A registration and the curable nature of the stated grounds (non-registration under state trust act and alleged non-genuineness of activities).

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5)(iii),Section 12A,Section 13(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR

For Appellant: CA jktLo dh vksj ls@
Hearing: 09/04/2025Pronounced: 05/05/2025

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 Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA No. 233/JP/2025 cuke Yog Ksem Sewa Nyas CIT Vs. Bharat Mata Mandir, Jamnalal Exemption, Bajaj Marg, Jamnalal Bajaj Marg Jaipur C Scheme, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATY0115A vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Sh. Vishnu Khandelwal, CA jktLo dh vksj ls@ Revenue by : Sh. Arvind Kumar, CIT-DR lquokbZ dh rkjh[k@ Date of Hearing : 09/04/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 05/05/2025 vkns'k@ ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM

By way of present appeal, the assessee challenges the order of learned Commissioner of Income Tax (Exemption), Jaipur [ for short CIT(E) ] dated 25/12/2024.The matter relates to the rejection of recognition of the assessee-appellant u/s. 80G of the Act.

2.

In this appeal, the assessee has raised following grounds: -

2. The Ld. CIT has erred on facts and in law in rejecting the application filed by the assessee u/s 80G(5) First Proviso clause (iii) in form No. 10AB seeking registration u/s 80G of IT Act on the ground that assessee is not registered under Rajasthan Public Trust Act, 1959.

3. The Ld. CIT has erred on facts and in law in rejecting the application filed by the assessee by stating that genuineness of activities is not proved. It is respectfully submitted that assessee has furnished all the required details alongwith details of bank transactions, bills, vouchers etc and established the genuineness of activities. Therefore, the order passed by the Ld. CIT is against the law and deserves to be quashed and set aside.

4. The appellant craves to add, alter or amend any of the grounds above.

3.

Succinctly, the fact as culled out from the records is that the assessee filed online application in Form No. 10AB seeking approval u/s 80G(5)(iii) of the Income Tax Act, 1961. Thereafter, to check the genuineness, various letters/notices were issued to the applicant. In compliance, the applicant requested for adjournment. The assessee submitted list of trustees, Trust deed, Bank statement, Photos of Ajeet Public School, Furnish various ledger accounts from F.Y. 2021 to 2024, Various bills & vouchers, Registration certificate, Bank Statement, Form No. 10AC or 80G, I&E account for F.Y. 2021-22 to 2023-24. Whereas the assessee has not provided Registration certificate under Rajasthan Public Trust Act, 1959, details of bank transactions above Rs. 10,000/-, I&E Bills/vouchers of major expenses, details of all 13(3) persons, etc., even though four opportunities were granted. Hence ld. CIT(E) noted that the activities of the applicant trust are not genuine, and conclusion drawn from records were as under :

• Not furnished the details of all 13(3) persons • The assessee has not furnished any details about activities claimed, even any photo, news paper cuttings, beneficiaries details were not submitted. • Not furnish details bank statements, cash book/bank book alongwith bank transaction more than Rs. 10,000/- in order to verify the nature of debit and credit entries. Thus, the nature of entries in bank account is unverified and activities do not seem genuine.

Hence from the above it is clear that the activities are not verifiable and it could not 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 80G considered as to be rejected on ground of not proving its genuineness of activity and following grounds: -

• Non registration in Rajasthan Public Trust Act, 1959.

• Non Genuineness of activities.

4.

Aggrieved from that order the assessee – applicant is before this tribunal. The ld. AR of the assessee submitted that so far as the first observation is concerned the assessee is registered under RPT and as regards the genuineness of activities the assessee is already registered as charitable trust u/s.12A of the Act and therefore, that observations is curable. In support of these contentions the assessee relied on the following evidence records :

Particulars Paper book page No(s) S.No 1 1 to 14 Copy of Trust deed 2 15 to 18 ITR, Computation and Balance Sheet as at 31.03.2024 3 19 to 28 Form no 10BB for the Assessment year 2024-25 4 29 to 32 ITR, Computation and Balance Sheet as at 31.03.2023 5 33 to 37 Form no 10BB for the Assessment year 2023-24 6 38 to 41 ITR, Computation and Balance Sheet as at 31.03.2022 7 42 to 44 Form no 10BB for the Assessment year 2022-23 8 45 to 52 Reply dated 09/12/2024 filed online 9 53 to 56 Acknowledgement of reply dated 09/12/2024 10 57 to 58 Details of donation received. Annexure 5 of reply 11 59 to 70 Details of Charitable Expenses Annexure 6 of Reply

Application for registration before Devasthan Vibhag dated 12 71 to 72 29/06/2024

5.

The ld. AR of the assessee also submitted that 12A registration is survived in the case of the assessee and 80G was rejected on the grounds that the activities of the trust is not genuine. Since 12A application has been approved registering, the assessee as chargeable trust after considering the genuineness of the activity. This decision of ld. CIT(E) requires reconsideration. He submitted in support of copy of 12A registration certificate issued on 24.09.2021. As regards the non-registration under the RPT Act, the assessee submitted that they have filed an application before the competent authority on 29.06.2024 for registration of the assessee trust under the RPT Act and this observation being curable he prayed to grant one more chance to contest the issue on merits.

6.

Per contra, the ld. DR relied upon the order of ld. CIT(E) but at the same time, he did not object to the prayer of the assessee for setting aside the matter.

7.

We have heard the rival contentions and perused the material placed on record. The bench noted that the assessee is registered u/s. 12A of the Act and the same is granted if the assessee trust is found to be charitable assessee could not file the required details in support of the activities done and registration of the applicant trust under RPT Act. The Bench noted that the reasons advanced for rejecting the recognition of the applicant- assessee trust are curable in nature as argued before us and prayed to contest the case for that they prayed for one chance. Considering that aspect of the matter, the Bench feels that the issue of recognition u/s 80G is required to be restored to the file of ld. CIT(E) to be decided afresh. Before parting, we may make it clear that our decision to restore the matter back 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.

In terms of these observations the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 05/05/2025. Sd/- Sd/- ¼ Mk0 ,l- lhrky{eh ½ ¼ jkBksM deys'k t;UrHkkbZ ½ (Dr. S. Seethalakshmi) (Rathod Kamlesh Jayantbhai) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 05/05/2025 *Ganesh Kumar, Sr. PS आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- Yog Ksem Sewa Nyas, Jaipur izR;FkhZ@ The Respondent- CIT(Exemption), Jaipur 2. 3. vk;dj vk;qDr@ The ld CIT 4. vk;dj vk;qDr¼vihy½@The ld CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत xkMZ QkbZy@ Guard File (ITA No. 233/JP/2025) 6. vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत

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