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Facts
The appellant trust's application for registration under Section 12A of the Income Tax Act was dismissed by the CIT(E) on two grounds: non-registration under the Rajasthan Public Trust Act, 1959, and non-genuineness of activities. The trust appealed this decision.
Held
The Tribunal held that non-registration under the Rajasthan Public Trust Act, 1959, is not an essential requirement for registration under Section 12AB of the Income Tax Act, and the trust has since obtained the registration. Regarding the second ground, the Tribunal found that the appellant trust was not given sufficient time to respond to the show cause notice.
Key Issues
Whether non-registration under the Rajasthan Public Trust Act, 1959, is a bar to registration under Section 12A of the Income Tax Act, and whether sufficient opportunity was provided to the assessee to address the grounds for rejection.
Sections Cited
12A, 12AB
AI-generated summary — verify with the full judgment below
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 .
By way of present appeal, appellant trust has challenged order dated 29.09.2024 passed by Learned Commissioner of Income Tax (Exemption), Jaipur, whereby its application filed u/s 12A (i)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) filed on 27.03.2024 seeking its registration for the purposes of the Act, has been dismissed on following two grounds:-
Arguments heard. File perused. Discussion 3. Non registration under Rajasthan Public Trust Act, 1959:- In the course of argument, Ld. AR for the applicant trust has submitted that during pendency of the application u/s 12A(1)(ac)(iii) of the Act , the applicant trust could not get itself registered under RPT Act, but presently it has been got registered. 4. In this regard, it may 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 purposes of registration of such institutions, u/s 12AB of the Act, registration under RPT Act, 1959 is not one of the essential requirements. 5. Even otherwise, in the paper book presented on 17.02.2025, before the Registry, applicant trust has submitted certificate dated 17.01.2025 issued under RPT Act, 1959, in proof of its registration thereunder.
Shri Gyan Gopal Ji Maharaj Trust Therefore, this ground of rejection of the application submitted before Learned CIT(E) does not survive anymore. Non genuineness of activity:- 6. This is the second ground for rejection of the application for registration under the Act. While rejecting application of the trust, Learned CIT(E) has observed that vide letter dated 19.06.2024 and 31.07.2024, the applicant trust was directed to furnish certain documents, detailed in para 3.2 of the impugned order, whereupon the applicant trust submitted copy of bank statements for the financial year 2020-21 to 2022-23, Copy of annual account for the financial year 2021-22 & 2022-23, computations and Form B, but, on examining said documents, certain discrepancies were noticed. A show cause notice dated 09.09.2024 was issued to the applicant trust so as to reply the queries raised therein, and also to furnish certain details, as specified in para 4 of the said show cause notice. Learned CIT(E) observed in the impugned order that from the documents furnished by the applicant trust and from the failure on the part of the applicant to furnish requisite information, as detailed in para 4 of the impugned order, it was obvious that its activities were not verifiable and it Shri Gyan Gopal Ji Maharaj Trust could not be determined whether the applicant trust was genuinely carrying on charitable activities or as per its objects.
Ld. AR for the appellant submits that few details were admittedly furnished by the applicant trust to Learned CIT(E), but some information could not be provided.
As is available from the impugned order, show cause notice was issued on 09.09.2024 for 17.09.2024. The impugned order came to be passed on 29.09.2024. We find that there was insufficient time made available to the applicant trust in reply to the show cause notice dated 09.09.2024. Therefore, we deem it a fit case where the appellant should be afforded reasonable opportunity of being heard. Result 9. In view of the above discussion, this appeal is disposed off, for statistical purposes, and the matter is restored to the file of Learned CIT(E) for decision on the application afresh, except the issue of registration under RPT Act, 1959, which stands finalized herein. Learned CIT(E) to afford reasonable opportunity of being heard to the applicant and that too, in accordance with law.