APJ ABDUL KALAM EDUCATION AND WELFARE TRUST,JAIPUR vs. CIT EXEMPTION, JAIPUR, JAIPUR

The Id. CIT (Exemption) has erred in denying the registration sought u/s. 12AA of the Act and to revoke the provisional registration u/s. 12AA (1) (ac) (iv) of the Act dated 03.08.2022. is unlawful, unjustified, and arbitrary. Such denial being contrary to the provisions of law and facts on record, the registration as prayed, kindly be granted.

The Id. CIT (Exemption) further erred in law as well as on the facts of the case in denying registration sought u/s. 12AA of the Act on the ground that the appellant failed to obtain registration under the FCRA Act, is legally unfounded and unsupported by the facts on record. Such finding is contrary to the provisions of law and facts on record hence, the Id. CIT (Exemption) Jaipur kindly be directed to grant registration as prayed for.

The Id. CIT (Exemption) further erred in law as well as on the facts of the case in denying registration sought u/s. 12AA of the Act on the ground that the appellant failed to satisfy about the genuineness of the activity and that did not fulfil the conditions under the provision. Such finding is contrary to the provisions of law and facts on record hence, the Id. CIT (Exemption) Jaipur kindly be directed to grant registration as prayed for.

The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.

The brief facts of the case are that the assessee trust applied in Form No. 10AB of the Act vide dated: 30.09.2023. 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); B). Violation of Foreign Contribution Regulation Act, 2010 (FCRA) and C). Genuineness of Activities. In addition to the above, provisional registration granted earlier u/s. 12A (1) (ac) (vi) of the Act vide dated: 03.08.2022 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.

The assessee submitted before us the copy of application filed online before the Devasthan Vibhag, Rajasthan vides dated: 22.09.2024, 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 him 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 there under 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 summarized 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