TREHAN SEVA BHARTI CHARITABLE TRUST,ALWAR vs. CIT(E), JAIPUR, JAIPUR
Income Tax Appellate Tribunal, JAIPUR BENCH “B”, JAIPUR
Before: Dr. S. SEETHALAKSHMI & SHRI GAGAN GOYAL
PER GAGAN GOYAL, A.M: This two appeals by the assessee is directed against the order of Ld. CIT(E), Jaipur dated 26.07.2024 passed u/s. 12AB (1) (b) (ii) (B) and 80G (5) of the Income Tax Act, 1961 (in short ‘the Act’). The assessee has raised the following grounds of appeal vide ITA Nos. 1027/JPR/2024 as under:
The Ld. CIT(E) has erred on facts and in law in rejecting the application filed by the assessee u/s. 12A (1) (ac)(iii) of the Act in Form No. 10AB seeking registration u/s. 12AB of IT Act, 1961 on the ground that (i) assessee is not registered under Rajasthan Public Trust Act, 1959 and (ii) genuineness of activities has not been proved.
The Ld. CIT(E) has further erred on facts and in law in cancelling the provisional registration granted by CIT u/s. 12(1) (ac)(vi) of IT Act, 1961. 3. The appellant craves to alter, amend any modify any ground of appeal.
Necessary cost be awarded to the assessee.
In ITA No. 1028/JP/2024, the assessee has raised the following grounds of appeal:
1. The Ld. CIT(E) has erred on facts and in law in rejecting the application filed by the assessee in Form 10AB seeking approval under clause (iii) of first proviso to section 80G (5) IT Act, 1961 on the ground that (i) approval u/s. 80G cannot be granted without registration u/s. 12AB and (ii) assessee trust contains elements of a religious trust and thus falls out of the scope of section 80G.
The Ld. CIT(E) has further erred on facts and in law in cancelling the provisional approval granted by CIT under clause (iv) of first proviso to section 80G(5) of IT Act, 1961. 3. The appellant craves to alter, amend and modify any ground of appeal.
Necessary cost be awarded to the assessee.”
The brief facts of the case are that the assessee trust applied in Form No. 10AB of the Act vide dated: 09.01.2024. After considering the replies of the assessee in response to the notices issued by the office of the Ld. CIT (E), Jaipur, application of the assessee was dismissed on following grounds: A). Not registered under the Rajasthan Public Trust Act, 1959 (RPT) and B). Genuineness of Activities. In addition to the above, provisional registration granted earlier u/s. 12A (1) (ac)(vi) of the Act vide dated: 21.09.2021 is also cancelled. The assessee being aggrieved with the same preferred the present appeal before us. We have gone through the order of the Ld. CIT(E), Jaipur alongwith the submissions of the assessee and paper book submitted before us. 3. The assessee submitted before us the copy of application filed online before the Devasthan Vibhag, Rajasthan vide dated: 25.05.2024, as required by the Ld. CIT(E), Jaipur. Although the requirement of obtaining registration with the Devasthan Vibhag, Rajasthan as per the Rajasthan Public Trust Act, 1959 is really required or not in the context of section 12AB (1) (b) (ii) (B) of the Act, is a matter raised before us by the counsel of the assessee and certainly a question of law to be decided by us in the coming paras of this order considering the provisions of section 12AB (1) (b) (ii) (B) of the Act, Judicial Pronouncements relied upon by the Ld. CIT(E), Jaipur. For sake of clarity and ready reference we are reproducing herein below the relevant provisions of section 12AB of the Act as under: Procedure for fresh registration. 12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall, — (a) where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five years; (b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) [or item (B) of sub-clause (vi)] of the said clause, — (i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about— (A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i), — (A) pass an order in writing registering the trust or institution for a period of five years; or (B) if he is not so satisfied, pass an order in writing, — (I) in a case referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (v) of clause (ac) of sub- section (1) of section 12A rejecting such application and also cancelling its registration;
(II) in a case referred to in sub-clause (iv) or in item (B) of sub-clause (vi) of sub-section (1) of section 12A, rejecting such application, after affording a reasonable opportunity of being heard.
The relevant provisions reproduced (supra) in bold and underlined, is an attempt by us to analyze the provision in proper perspective of Law in the light of Judicial Pronouncement of Hon’ble Apex Court, specifically the citations being relied upon by the Ld. CIT (E), Jaipur, i.e. [2012] 20 taxmann.com 46 (A.P.)Aurora Educational Society vs. CCIT, relevant paras are reproduced as under: “10. The scope and amplitude of section 10(23C) (vi) of the Income-tax Act, the provisos thereunder and the rules and forms applicable thereto, which were the subject-matter of examination in New Noble Educational Society vs. Chief CIT [2011] 334 ITR 303/201 Taxman 33/ 12 taxmann.com 267(AP) and in R. R. M. Educational Society vs. Chief CIT [2011] 339 ITR 323 (AP) can, conveniently, be summarised as under: 1. As section 20A of the A. P. Education Act prohibits individuals from establishing educational institutions, it is only societies/associations/ trusts which can establish educational institutions in the State of Andhra Pradesh.” “19. On a conjoint reading of sub-sections (3) and (4) of section 8 of the A. P. Societies Registration Act, 2001, it is only when the amendment to the objects of a society (educational agency) is intimated and the