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Facts
Niswarth Welfare Society filed two applications before the CIT(E) for registration under Section 12AB and Section 80G of the Income Tax Act, 1961. Both applications were rejected by the CIT(E) based on grounds such as incomplete Form 10AB, non-registration under the Rajasthan Public Trust Act, and non-genuineness of activities for the 12AB application, which subsequently led to the rejection of the 80G application.
Held
The ITAT held that non-registration under the Rajasthan Public Trust Act, 1959, is not an essential requirement for Section 12AB registration, citing a coordinate bench decision. Acknowledging the appellant's inadvertent default in submitting documents, the ITAT remanded both the Section 12AB and Section 80G applications back to the Learned CIT(E) for a fresh decision after providing the appellant a reasonable opportunity of being heard. The appellant was also directed to pay costs of Rs. 1,000/- for non-compliance.
Key Issues
The key legal issues concerned the validity of rejecting applications for Section 12AB and Section 80G registration, including whether non-registration under the Rajasthan Public Trust Act is a mandatory requirement for Section 12AB.
Sections Cited
12AB, 80G
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER .
This common order is to dispose of the above captioned 2 appeals filed by the appellant-society, before Learned CIT(E). Vide two separate orders, two separate applications filed by the appellant before Ld. CIT(E) came to be rejected on separate grounds. One of the applications was submitted seeking its registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) The other application was submitted seeking its registration u/s 80G of the Act. as regards application u/s 12AB of the Act This application came to be rejected on the following three grounds:- Incomplete Form 10AB. Non-registration under Rajasthan Public Trust Act, 1959. Non-Genuineness of Activities.
Non registration of the applicant under RPT Act, 1959 4. As noticed above, this is one of the grounds of rejection of the application. In this regard, it may be mentioned here that Co-ordinate Bench ITAT, Jaipur has held in APJ Abdul Kalam Education and Welfare Trust vs. CIT(E) decided on 15.01.2025 that for the purposes of registration of such institutions, u/s 12AB of the Act, registration under RPT Act, 1959 is not one of the essential requirements.
A perusal of the impugned order would reveal that Learned CIT(E) observed therein as to which the documents were not furnished by the & 110/JPR/2025 Niswarth Welfare Society vs. CIT(E) applicant initially with the application in Form 10AB and also in reply to letter dated 08.09.2024 issued by Learned CIT(E).
As regards non furnishing of the documents, Ld. AR for the appellant candidly admits default on the part of the appellant. He submits that the applicant could not furnish the requisite details/documents inadvertently, as the Secretary of the society, whose e-mail address and merely PAN number were furnished on the income tax portal, did not check e-mail account as well as SMC. At the same time, Ld. AR submits that the matter be remanded to Learned CIT(E) for decision of the application afresh, after providing reasonable opportunity to the applicant of being heard.
Ld. AR for the appellant has submitted affidavit of Shri Gaurav Sharma, Secretary of the appellant society.
Ld. DR for the department has not controverted the above affidavit. 9 As is available from the impugned order, notices dated 08.09.2024, 26.10.2024 and 08.11.2024 were issued by the office of Learned CIT(E) to the applicant asking the applicant for certain details/information/documents.
& 110/JPR/2025 Niswarth Welfare Society vs. CIT(E) In the given situation, we are of the view that the application deserves to be decided after providing another opportunity to the applicant of being heard.
Accordingly, is disposed of for statistical purposes and the application is restored to the files of Learned CIT(E), for decision of the application u/s 12AB of the Act afresh after providing another opportunity to the applicant of being heard.
Taking into consideration the factum of non compliance on the part of representative of the applicant society before Learned CIT(E), the appellant society is burdened with costs of Rs. 1,000/-. Costs to be deposited by the applicant with “Prime Minister’s National Relief Fund” and receipt to be submitted before Learned CIT(E) before commencement of the proceedings on remand.