INDO SWISS CHARITABLE TRUST,JAIPUR vs. CIT (EXEMPTION), JAIPUR

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ITA 174/JPR/2025Status: DisposedITAT Jaipur28 April 2025AY 2025-26Bench: SHRI GAGAN GOYAL (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)6 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the matter to the CIT(E) for a fresh decision, providing the assessee with another opportunity to comply with the directions. The appeal was disposed of for statistical purposes.

What were the facts?

The assessee's application for approval under Section 80G(5)(iv) of the Income Tax Act, 1961 was rejected by the CIT(E) due to absence of regular registration u/s 12A, non-registration with RPT Act, 1959, absence of dissolution clause, and lack of genuineness of activities. The assessee failed to reply to a show cause letter issued by the CIT(E).

What were the issues?

Whether the CIT(E) was justified in rejecting the application for approval under Section 80G(5)(iv) and whether the assessee should be granted another opportunity for compliance.

Which sections of the Income-tax Act were involved?

Section 80G(5)(iv),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”B-Bench” JAIPUR

Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM

For Respondent: Ms. Alka Gautam, CIT
Hearing: 24/04/2025Pronounced: 28/04/2025

vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER .

On 28.12.2024, Learned CIT(E) rejected an application filed by the appellant seeking approval u/s 80G(5)(iv) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), on the following grounds:-  Absence of regular registration u/s 12A.  Non registration with RPT Act, 1959.

Indo Swiss Charitable Trust, Jaipur  Absence of dissolution clause.  Genuineness of activities.

2.

Arguments heard. File perused.

3.

The only submission put forth on behalf of the appellant is that the applicant could not comply with certain directions issued by Learned CIT(E) and that in case another opportunity is granted, the applicant would do the needful so as to comply with the said directions. Accordingly, the submission is that the matter may be restored to the files of Learned CIT(E).

4.

Ld. DR for the department has no objection to the restoration of the matter to Learned CIT(E) for providing another opportunity of being heard to the applicant for compliance with the directions of the said office.

5.

Record reveals that the application was submitted by the applicant in Form 10AB online on 29.06.2024. Thereupon, notice dated 03.09.2024 was issued to the applicant requiring production of documents/explanations by 18.09.2024. The applicant filed its reply. Learned CIT(E) observed certain discrepancies and accordingly, issued show cause letter dated 09.12.2024, but the applicant did not furnish any reply to the said show cause letter. That is how, Ld. CIT(E) proceeded further.

Indo Swiss Charitable Trust, Jaipur 6. In view of the two opportunities granted by Learned CIT(E), the applicant should have done its best to comply with the directions issued by the said office, but, as noticed above, no reply was furnished to the show cause letter whereby certain discrepancies were pointed out to the applicant for their removal. Keeping in view that the applicant claims itself to be a charitable trust, and the issues involved we deem it a fit case to restore the matters to the files of the Learned CIT(E) for decision of said application afresh, after providing another opportunity to the applicant to comply with the directions issued by that office.

7.

Since the applicant was non complaint, as regards the show cause letter dated 09.12.2024, the applicant is to be burdened with costs of Rs. 2000/- . Costs to be deposited by the appellant in “Prime Minister’s National Relief Fund”. Result 8. In view of the above discussion, this appeal is disposed of for statistical purposes, and the matter is restored to the files of Learned CIT(E) for decision afresh while providing an opportunity to the assessee of being heard.

Indo Swiss Charitable Trust, Jaipur Receipt in proof of deposit of costs to be submitted before Learned CIT(E) before commencement of the proceedings on remand. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 28/04/2025.

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