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Facts
The assessee filed applications for registration under Section 12AA and approval under Section 80G of the Income Tax Act. The CIT(E) rejected these applications on grounds including incomplete Form 10AB, lack of RPT Act registration, and questions about the genuineness of activities. The assessee appealed these rejections, also seeking condonation of a 150-day delay in filing the appeals due to a family medical emergency.
Held
The Tribunal condoned the delay of 150 days in filing the appeals, citing sufficient cause. It was held that the reasons for rejection by the CIT(E) were curable in nature and that the assessee should be given an opportunity to rectify the defects. The orders of the CIT(E) were set aside, and the matters were remanded back to the CIT(E) for a fresh decision after providing the assessee with adequate opportunity of being heard.
Key Issues
Whether the rejection of registration u/s 12AA and approval u/s 80G by the CIT(E) was justified, and if the delay in filing the appeals can be condoned.
Sections Cited
12AA, 80G, 10AB, 12A, Limitation Act, 1963
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M.
Both these appeals have been filed by the assessee against two different orders of the ld. CIT(E),Jaipur dated 17-10-2023 in the matter of Section 12AA and 80G of the Act respectively, raising therein following grounds of appeal. –u/s 12AA of the Act
“ 1. CIT(E) has wrongly rejected the application for registration of assessee trust u/s 12A stating that trust had not complete the form 10AB, has not registration with RPT Act, 1959, genuineness of activity and made for the benefit of limited people. Hence CIT(E) order should be made null and void and CIT(E) may be directed to grant for 12A registration and rejection/cancellation order of 12A must be quashed.
– u/s 80G of the Act “1. CIT(E) has wrongly rejected the application for registration of assessee society u/s 80G stating that approval u/s 80G cannot be granted without registration u/s 12AB and commencement of activities whereas assessee trust is doing charitable activities. Hence CIT(E) order should be made null and void and CIT(E) may be directed to grant for 80G registration and rejection/cancellation order of 80G must be quashed.
2.1 At the outset of hearing, the Bench observed that there is delay of 150 days in filing both the appeals by the assessee for which the ld. AR of the assessee filed an applications for condonation of delay with following prayers and the assessee to this effect also filed an affidavit also :-
“With reference to the above subject, we want to state that the assessee trust was unable to respond to the CIT order within the stipulated timeframe, during the period when the CIT order was sent, the family of the president of the assessee trust encountered unexpected emergencies that demanded her immediate attention and involvement. So there is delay in filing appeal. Further, requesting the condonation of delay, we are relying on the following decisions:-
1. 1. Your honour, it has been held by Income Tax Appellate Tribunal Mumbai in a similar case in the case of The Phoenix Mills Ltd V/s Asstt. Commissioner of Income-tax:ITA No. 6240/M/2007 In the above case, the delay of 1358 days was condoned of the assessee and matter set- aside to CIT(Appeals) and it was held that the delay can be condoned if there exists sufficient cause for the delay.
2. COLLECTOR LAND ACQUISITION V/s, MST. KATLJI AND OTHERS-(1987) 167 ITR 471(SC): In the above case it was held that the delay can be condoned if there exists sufficient cause for the delay and the reasons for the same is properly evidenced. The appeal should be disposed of on merit after affording reasonable opportunity of hearing to both the sides.
3. STATE OF UP VA. BAHADUR SINGH & OTHERS(1983)142 ITR 745(SC)- It was judicially decided that where the explanation for the delay is convincing and reasonable, a writ petition cannot be dismissed merely on the ground that the same was filed after a long time.
4. ANIL SONI VA, ITO (1992) 52 TAXMAN48,49 (J&K) Laches is not absolute bar if the court is otherwise satisfied with the justness of the petitioner's claim that relief can be granted to the petitioner who approaches the court even somewhat belatedly. The cases highlighted above clearly specifies that merely delay in filing cannot be the ground for rejection of an appeal is the reason that the legislature itself has conferred the power to condone delay by enacting section 5 of the Limitation Act of 1963 in order to enable the court to do the substantial justice to the parties by disposing of matter on "merits". The expression "sufficient cause" employed by the legislature is adequately elastic to enable the court to apply the law in a meaning manner which sub serves the ends of justice- that being the life purpose of the existence of the institution of courts.
Vedabai Alias Vaijayanatabai Baburao Patil v. Shantaram Baburao Patil and Others- 2001 (132) E.LT. 15 (S.C.) (2002) 253 ITR 799 In the above case Court had held that "In exercising discretion under Section 5 of the Limitation Act, 1963, to condone delay for sufficient cause in not preferring an appeal or other application within the period prescribed, courts should adopt a pragmatic approach. A distinction must be made between a case where the delay is inordinate and a case where the delay is of a few days. Whereas in the former consideration of prejudice to the other side will be a relevant factor and calls for a more cautious approach, in the latter case no such consideration may arise, and such a case deserves a liberal approach. No hard and fast rule can be laid down in this regard. The Court has to exercise its discretion on the facts of each case keeping in mind that in construing the expression "sufficient cause the principles of advancing substantial justice is of prime importance. The expression "sufficient cause" should receive a liberal construction. There remains no ground for the denial of the acceptance of appeal of the assessee trust. Therefore, your good self is requested to please condone the delay of 150 days, as your acceptance can render natural justice to the assessee. Hope you will consider our request and oblige.”
It may be noted that the assessee mentioned in the affidavit that the mother of the assessee had been seriously ill from various diseases since July 2023 and passed away on 25-12-2023 for which the assessee filed copy of death certificate issued by Registrar, Sirohi, Sirohi (Directorateof Economics and Statistics, Govt.of Rajasthan). The assessee also mentioned that his mother-in-law aged about 86 years has been living with him for the last 20 years and since last one year she has been suffering severe respiratory problems and her spinal cord was operated and her treatment was from Shri Vinayak Hospital,Sirohi. The assessee submitted the medical certificate in respect of her treatment from this hospital. The assessee submitted that notice and order of ld. CIT(E) dated 17-10-2023 was not received by him and due to such medical emergencies he could not frequently check the matter on portal and also not pursue /consult the matter with his consultant. He submitted that while checking the status of registration u/s 12A and 80G of the trust in the month of May, he came to know about the rejection of order of ld.CIT(E),Jaipur. So the appeal was filed by another trustee with delay of 150 days. Thus, the assessee trust prayed for condonation of delay
During the course of the hearing, the ld. DR at this juncture did not object 2.2 assessee’s application for condonation of delay and prayed that Court may decide the issue as deem fit and proper in the interest of justice.
2.3 We have heard both the parties and perused the materials available on record. The Bench noted that the reasons advanced by the assessee in the petition filed for condonation of delay of 150 days along with the supportive affidavit is sufficient to condone the delay and it has merit based on the prayer advanced by the assessee. Thus, we concur with the submission of the assessee and condone the delay of 150 days in filing the present appeals by the assessee in view of the decision of Hon’ble Supreme Court in the case of Collector, land Acquisition vs. Mst. Katiji and Others, 167 ITR 471 (SC) as the assessee was prevented by sufficient cause.
3.1 Now we take up the appeal of the assessee in wherein the brief fact of the case is that the assessee filed online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 was filed on 30.09.2023. A letter/notice dated 07.10.2023 was issued at the e- mail/address provided in the application requiring the assessee to submit certain documents/explanations by 12.10.2023, but no compliance has been made by the assessee. It is pertinent to mention here that the assessee had filed online application in form no. 10AB for seeking approval u/s 80G on 12.04.2023 which will be time barred on 31.10.2023. The assessee was provided three opportunities vide notice dated 30.08.2023, 16.09.2023, 23.09.2023 respectively by the ld.CIT(E). However, the applicant failed to comply with the letters, despite being given three opportunities. Thus According to the ld. CIT(E), it is also important to mention here that 80G cannot be granted without registration u/s 12AB. Therefore, it is necessary to dispose the application filed in from 10AB seeking registration U/s 12AB. Since the assessee has not submitted any submission in response of notices issued by the ld. CIT(E) for registration u/s 12AB as well as approval U/s 80G, therefore, the case was decided by the ld. CIT(E) on the basis of material filed by the assessee along with its application in Form no. 10AB and thus the registration u/s. 12AB was rejected by the ld. CIT(E) by observing as under:-
‘’06. In view of above discussion, assessee’s claim of registration section 12AB is liable to be rejected and thus being on rejected on following grounds. Incomplete Form 10AB. Non registration with RPT Act, 1959. Genuineness of activities. Made for the benefit of limited people.
3.2 As regards the appeal of the assessee relating to Section 80G, it is noted that the ld. CIT(E) rejected this appeal of the assessee by observing as under:-
‘’4. In view of above discussion applicant’s application for approval u/s 80G is liable to be rejected on the following grounds:- Approval u/s 80G cannot be granted without registration u/s 12AB. Commencement of activities.
3.3 During the course of hearing, the ld. AR of the assessee submitted that he could not advance the documents / submission to argue the case before the ld.CIT(E) for want of adequate opportunity of being heard by the ld. CIT(E) and one more chance may be given to contest the case before the ld CIT(E). To this effect, the ld. AR of the assessee has filed the detailed written submission. “We are a charitable trust that works for general labour and public welfare activities. The trust also works for promotion of education, providing relief to the poor as well as medical reliefs to those in need. The trust also provides a great help to workers and labours. Provisional registration w/s 12A was granted to the assessee on 04.04.2022, valid till AY 2024-25 vide unique registration number AADTV2944FE20210 The assessee Trust had filed form 10A vide PB No. 88-91 for provisional registration and the provisional registration was granted to the assessee in form 10AC on 04.04.2022 vide PB No. 85- 87. valid till AY 2024-25. The applicant filed application on 30.09.2023 in Form No. 10AB vide PB No 92-98 for seeking approval u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961. However, 12A Provisional Registration and Charitable Activities were not considered. So, CIT exemption has wrongly rejected our 12A application and trust qualify all the eligibility for granting 12A registration, hence assessee trust is under appeal before your Honor. With these facts and background of case, grounds of appeal are dealt as under Grounds of Appeal Ground No.
1. CIT(E) has wrongly rejected the application for registration of assessee trust u/s 12A stating that trust had not complete the form 10AB, has no registration with RPT ACT, 1959, Genuineness of Activities and Made for the benefit of limited people. Hence CIT(E) order should be made null and void and CI(E) may be directed to grant for 12A registration and rejection/cancellation order of 12A must be quashed. Reply of ground no.
1. The assessee trust is a charitable trust duly registered with Sub- Registrar V. Jaipur vide registration endorsement serial number 201901019009433 on 15.11.2019 vide trust deed number 201901019009433 by sub registrar Jaipur V by declaration of trust where there is no disposition of property, further trust deed has been amended on dated 24.06.2024. We are enclosing amended bust deed along with the original trust deed. vide PB No. 1-14. The trust has also applied for Devsthan Vibhag and under registration process by the State Government of Rajasthan under the Rajasthan Public Trust Act, 1959 vide PB No.42-45 The assessee is a charitable trust that works for the welfare of the general labour such as their social upliftment and awareness of labour laws prevalent in India and to fight for deprived general labour class, protect the environment by tree plantation and blood donation camp for general public welfare and providing relief to the poor and needy people. The objects of the Trusts are of charitable purposes, general public utility as well as relief to poor needy people specifying as under: a) To Propagate and publicize the basic labour welfare thought of Late SHREE DATTOPANT THENGADI b) To-create strong awareness amongst Indian fellow countryman about economic independence of Workers/Laborers by mass movement. c) To Propagate and encourage the workers and to act for their welfare. To protect the environment by tree plantation and blood donation camp for general public welfare. d) To arrange various programmes amongst Workers/Laborers for their betterment, upliftment and organization. e) To create corpus for achieving the aims and objects of labour welfare the Trust by way of donations, contribution, gifts, charity etc. f) To render medical help such as blood donation camps, education, to help down trodden by way of economic help in celebrating marriage of children. g) To form and extend financial aid to allied institutions for comprehensive study of Labour related Law in India and abroad. h) To conduct research work, field work, seminar workshop and publication of magazines relating to the workers and their welfare, their condition and to help redressal of their grievances. i) lo preserve and promote the deep rooted rich India's social industrial and economic values which are in the interest of the Indian economy and Industry. j) To propagate and strive for the development process in an integrated manner based on national cultural ethos. k) To file PIL, suits, representation before appropriate judicial and legislative authonty for workers/Labour cause. 1) To tie up with Central Trade Union organizations for healthy and effective presentation of worker's demands and cause.
2. Rebuttal of point 2.2 of CIT Order The CIT states that "On verification of the application in Form 10AB filed by the applicant, it wax found that the application was not complete, and the documents required to be accompanied with Form (UAB were not furnished such as:- Self-certified copy of existing order of granting registration ss 124 (Rule 17A(2)(e)) Note on activities of the applicant (Rule 174(2)(k)) It is also important to mention here that above so-called details along with some other details were called from assessee vide various notices as mentioned above. However, assessee failed to submit the same. This, assessee's request for registration u/s 124B is liable to be rejected on ground of incomplete form." We want to state that there is no point such as "Note on activities of the applicant (Rule 17A(2)(k) in Form 10AB. We want to state that the email on which the notice was sent was wrong and thus we were not aware of notice issued by CIT(E). Further, the mother of the President of the trust had passed away on 25-12- 2023 and his mother-in-law was also severely ill for the past 1 year and is under the care of the assessee Thus, he could neither check the portal nor discuss with tax consultants We are also enclosing photographs as a proof of genuineness of activities for conducting Charitable Activities like Blood Donation and Relief to Poor and Needy People vide PB No. 46- 65. We are enclosing the copy of existing order in Form 10AC granting registration under section 12A vide Unique Registration Number AADTV2944FE20210 from AY 2022-23 to AY 2024- 2025 vide PB No:85-87 So our form is complete and our registration cannot be rejected on the basis of incomplete form.
3. Rebuttal of point 3 of CIT Order The CIT states that be the absence of registration under Rajasthan Public Trust Act, 1959, assessee iv not eligible for registration u/s 1248," The assessee trust is a charitable trust duly registered with Sub- Registrar V. Jaipur vide registration endorsement serial number 201901019009433 on 15.11.2019 vide trust deed number 201901019009433 by sub registrar Jaipur V by declaration of trust where there is no disposition of property, further trust deed has been amended on dated 24.06.2024. We are enclosing amended trust deed along with the original trust deed. vide PB No. 1-14. The trust has also applied for Devathan Vibhag and under registration process by the State Government of Rajasthan under the Rajasthan Public Trust Act, 1959 vide PB No.42-45.
Rebuttal of point 4 of CIT Order The CIT states that "it could not be determined whether the applicant is genuinely carrying out charitable activity as per its object." The assessee is a charitable trust that works for the welfare of the general labour such as organizing blood donation camps, organizing training for trainers for labour welfare and embarkment to the general public regarding labour welfare laws for the betterment of the general society, their social upliftment and awareness of labour laws prevalent in india and to fight for deprived general labour class and protect the environment by tree plantation for general public welfare and providing relief to the poor and needy people. We are also enclosing photographs as a proof of genuineness of activities for conducting Charitable Activities like Blood Donation and Relief to Poor and Needy People vide PB No. 46-65. Hence Ld. CIT is wrongly stated that applicant has failed to justify the genuineness of activities whereas assessee trust is doing all genuine charitable activities which is true from above stated photographs and ledger of expenses. The CIT states that "However, the applicant has failed to comply with the letters, despite being green three opportunities details of which green in para-l” The Ld. CIT has wrongly stated in his order that the assessee trust was granted 5 opportunities. The order has been passed by only giving 1 opportunity to the assessee trust. We want to state that the email on which the notice was sent was wrong and thus we were not aware of notices issued by CIT(E) Further, the mother of the President of the trust had passed away on 25-12-2023 and his mother-in-law was also severely ill for the past. I year who is under the care of the assessee. Thus, he could neither check the portal nor discuss with tax consultants. So, the Ld. CIT has wrongly passed the order without giving sufficient opportunity of being heard. The CIT states that that except Honorarium expenses no any charitable activity was done by the applicant.” The assessee trust has conducted blood donation camps for the welfare of general public and organised. Photographs for the blood donation camps are enclosed vide PB No. 46-65. Usually expenses for the blood donation camps and other charitable programs expenses are borne by various organisations and are thus not shown in the books of the trust.
5. Rebuttal of Point 5 of CTT Order:
The trust deed has been amended on dated 24.06.2024 in which point 3 of objects has been amended from To Propagate and encourage the full time workers of BMS and to act for their welfare" to "To Propagate and encourage the workers and to act for their welfare. To protect the environment by wee plantation and blood donation camp for general public welfare." So the objects of the trust are for general public, not for limited people. We are enclosing amended trust deed along with the original trust deed vide PB No. 13-14.
6. It was decided in similar case by the ITAT "B" BENCH, JAIPUR in case of Paradise Sarv Kalyan Sansthan, 106/31, Agarwal Farm, Mansarover, Jaipur V's CITES Jaipur vile LTA Nos. 401 & 402/JPR/2024 order Pronounced on 10/07/2024 vide PB No. 66-71. “conclusion 12. For the foregoing discussion, we find that both the impugned orders ie, one challenged by way of JPR 2024 and the other by way of deserve to be set aside, and matter(s) need remanded to Learned CITYE) for decision afresh, after providing reavonuble opportunity to the applicant-appellant, of being heard Result 13. Consequently, both these appeals are allowed. While setting aside the impugned orders, the matters are remanded to Learned CIT(E), Jaipur for decision of the respective application afresh after providing reasonable opportunity to the appellant-applicant of being heard." Our case is on the same analogy/ identical to the above case, hence our case may also be referred to CIT(Exemption) with necessary directions.
7. It was decided in similar case by the ITAT "A" BENCH, JAIPUR in case of Aacharya Shri Hira Laxmi Guru Jain Gaushala Sansthan, Devliva Kala Via Chapaneri, Aimer Vs CIT Exemption, Jaipur vide LT.A. Nos. 697 & 698/JPR/2024 order Pronounced on 14/08/2024 vide PB No. 72-84: "The bench noted the application of the assessee for registration u/s. 12AB was rejected on the objection of fact that the assessee is not registered under the Rajasthan Public Trust Act, 1959, for the assessee has made an application for registration and as regards the genuineness of activities the observation made by ld. CIT(E) is curable in nature and therefore, considering the arguments of the parties we are of the considered view that so far the issue of registration u/s. 12AB of the Act the assessee require one more opportunity to represent the correct fact and produce the registration certificate under RPT Act. Thus, looking to the interest of justice and considering the prayer of the Id. AR of the assessee submitted that the assessee be given a chance to defend the issues on its merit before the Id. CIT(E)and the observation made are curable in nature we considered the prayer of the assessee to remind the case to the file of ld. CIT(E)for making a decision a fresh and thus we set aside the order dated 22.03.2024 passed for rejecting the registration of the trust w/s. 12AB of the Act with a direction to the assessee to produce all the related to the issue. Based on this observation the appeal of the assessee in stands allowed for statistical purpose. Our case is on the same analogy/ identical to the above case, trust has applied for registration in Rajasthan Public Trust Act, 1959 and under registration process by the State Government of Rajasthan so our matter may also be allowed for statistical purpose and set aside to CIT Exemption.
It was decided in similar case by the ITAT "G" BENCH, MUMBAI in case of Shri Surti Modh Vanik Jagruti Mandal, B-201, Mota Nagar, Sir MV Road, Andheri East, Mumbai Vs ITO(E), Ward-2(3) ITAT, Cumballa Hill, Tel Exchange, Mumbai vide 1.T.A. Nos. 1315 & 1316/Mum/2023 order Pronounced on 27/07/2023: "In this case The CI(E) had rejected the application for registration of Shri Surti Modh Vanik Jagruti Mandal under sections 124 and 80G the Income Tax Act, 1961. The primary reason for the rejection was that the Trust seemed to serve only a specific community the Surti Modh Vanik Samaj. The CITYE) cited that the aims and objectives were not 'genuine' and for the broader public but catered to a specific community, making it ineligible for the tax exemptions under the cited sections. The ITAT found that the CIT(E) has wrongly rejected the applications. The ITAT ported out that the LA CIT(E) has not applied his mind while passing the impugned orders." Hence in our case main objectives is doing charitable and general public welfare activities without any discretion of caste, color, Creed, section or sex in India so, our trust is charitable and as all our objects are genuine and for the broader public which can be clearly seen from Trust Deed. Hence eligible for registration Under form 10AB u/s 12A of Income Tax Act 1961.
9. It was decided in similar case by the ITAT "Jaipur" BENCH, in case of Shri Parnami Panchayat 1, Parnami Mandir, Adarsh Nagar, Jaipur Vs ITO(Exemptions), Ward-1, Jaipur vide order Pronounced on 18/08/2023: "Although the assessee trust, since past many years was registered under Section 12AA of the Act. however, such certificate during the course of reassessment proceedings was not traceable Accordingly, benefit of Section 11 was denied by the AO, vide order dated 30.09.2017. Against the order of the AO, assessee trust preferred an appeal before the CITYA). The said appeal was filed within stipulated time period te. on 16.11.2017. In the interregnum, the assessee trust again applied for registration ws 12AA of the Act, which was granted by lid CIT(E) 27.10.2018, with effect from AY 2019-20. Before the Id. NFAC, it was submitted that since the assessee trust, before the order being passed by Ld. CIT(A), in the first appellate proceedings, for caption assessment year, had been granted fresh registration w/s 12AA of the Act, benefit of such exemption should be given even for the caption assessment year. Our case is on the same analogy/ identical to the above case, trust has applied for re-registration so benefit of 12A should be granted for the relevant and earlier Assessment year under Sec 12A.
10. It was decided in similar case by the ITAT JAIPUR BENCHES, "B" JAIPUR, in case of Akhil Bhartiva Shree Khandal Vipra Mahasabha, Pushkar, Ajmer. Vs The ITO (Exemption) Ajmer, vide order Pronounced on 07/01/2019; The appellant trust, which obtained registration during the pendency of the appeal, shall be entitled so exemption under Section 11 and 12 of the Act. The registration under Section 1244 by itself does not offer immunity from taxation. The CIT (A) was not justified in taking a similar stand as the AD without considering the amendment to Section 124 of the Act. This case involves an appeal filed by the appellant, Akhil Bhartiya Shree Khandal Vipra Mahasabha, against the order of the la. CIT(A). Ajmer. The appellant mat is registered under the Rajasthan Societies Act on 27.10.1952. The trat applied for registration under Section 12AA on 19:01.2016 and was granted registration by the LA CITYF) on 08.07.2016. The Id. CIT(A) confirmed the additions made by the Assessing officer. The provisions of Section 12A state that if registration has been granted to a trust or institution under Section 12AA, the provisions of Sections 11 and 12 shall apply as respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year. Therefore, the provisions of Section 11 and 12 shall apply for assessment year 2016- 17. Our case is on the same analogy/ identical to the above case, trust has applied for re-registration so benefit of 12A should be granted for the relevant and earlier Assessment year under Sec. 12A.
It was decided in similar case by the ITAT JODHPUR BENCH:: JODHPUR, in case of Bhamashah Sundarlal Daga Charitable Trust, Bagree Mohallan, Bikaner 334001..Vs The Commissioner of Income Tax-Exemption, Jaipur. vide order Pronounced on 10/11/2023) "Therefore, in these facts and circumstances we hold that the Assessee had made the application in form 1048 within the prescribed time limit and hence it is valid application. Therefore, we direct the Id.CIT(E) to treat the application as filed within statutory time and verify assessee's eligibility as per the Act. The id CIT(E) shall grant opportunity to the assessee. Assexsee shall be at liberty to file all the necessary documents before the id.CIT(E).
Accordingly, the appeal of the assessee is allowed for statistical purpose. Since we have set aside to LACITIE), we do not intend to adjudicate each ground separately." Our case is similar and also covered under ITAT cases Since we have filed application within time period and so cannot be rejected AND complied all the conditions required for registration under 12A, So Assessee is eligible for registration Under form 10AB u/s 12A of Income Tax Act 1961.
In similar case, it was decided by the Hon'ble ITAT AMRITSAR BENCH, AMRITSAR, in case of Dharam Chandan Charitable Trust 313/1, Dr. Sham Singh, Vs. CIT (Exemption) Chandigarh The Commissioner of Income Tax-Exemption, Jaipur, vide order Pronounced on 26/04/2023: "For registration w/s 12AA it is clearly stipulating that the ld. CIT(E) shall satisfy himself about the objects and the genuineness of its activities. The assessee made the payments in relation to charitable activities of trust. The Id. DR had not made any strong objection related to submission of the assessee and the evidence which are filed before the bench. We set aside the order of the Id. CIT(E) and direct to allow the registration of the assessee." In our case the assessee is a charitable trust that works for the welfare of the general labour such as their social upliftment and awareness of labour laws prevalent in India and to fight for deprived general labour class, protect the environment by tree plantation and blood donation camp for general public welfare and providing relief to the poor and needy people. Hence your Honor is requested to direct the CIT Exemption to grant the approval u/s 12A and justice should be imparted in the favor of assessee.” The ld. AR of the assessee also filed a detailed paper book in support of the contention so raised in the written submission and the index of the document submitted are as under:-
S. No. Paper book Particulars Pg. No.
Trust Deed dated 26.08.2019 showing welfare of the general labour as a charitable 1-14 activity with amended trust deed dated 24.06.2024.
ITR, Computation, Audit Report, Balance Sheet, Income & Expenditure A/c and 15-21 Receipts and Payments A/c for F.Y. 2020-21 showing welfare of the general labour as a charitable activity.
ITR. Computation, Audit Report. Balance Sheet. Income & Expenditure A/c and 22-28 Receipts and Payments A/c for F.Y. 2021-22 showing welfare of the general labour as a charitable activity 4. ITR. Computation, Audit Report, Balance Sheet. Income & Expenditure A/c and 29-41 Receipts and Payments A/c for F.Y. 2022-23 showing welfare of the general labour as a charitable activity.
5. RPT Act Registration under Devshtan Vibhag Form Form 7 and Newspaper Cutting 42-45 for registration as charitable trust.
Proof of genuineness of activities as photographs of conducting Charitable 46-65 Activities Like Relief to Poor and Blood Donation.
Decision of Hon'ble ITAT BENCH, Jaipur, in case of Paradise Sarv Kalyan 66-71 Sansthan Vs. CIT (Exemption) Jaipur vide & 402/JPR/2024 order Pronounced on 10/07/2024.
8. Decision of Hon'ble ITAT "A" BENCII, JAIPUR in case of Aacharya Shri Hira 72-84 Laxmi Guru Jain Gaushala Sansthan, Devliya Kala Via Chapaneri, Ajmer Vs CIT Exemption, Jaipur vide LT.A. Nos. 697 & 698/JPR/2024 order Pronounced on 14/08/2024.
Form 10AC under Sub clause (vi) of clause (ac) of sub-section (1) of section 12A 85-87 vide Provisional Registration Number AADTV2944FE20210.
Form 10A under sub clause (vi) of clause (ac) of sub-section (1) of section 12A vide 88-91 acknowledgement no. 425520490250322.
11. Form 10AB under sub clause (iii) of clause (ac) of sub-section (1) of section 12A 92-98 vide acknowledgement no. 359518510300923.
12. Form 10AC under Clause (iv) of first proviso to sub-section (5) of section 80G vide 99-100 Provisional Approval Number AADTV2944FF20221.
Form 10A under Sub-clause (A) of clause (iv) of first proviso to sub-section (5) of 101-104 section 80G vide acknowledgement no. 450143320280322.
Form 10AB under Clause (iii) of first proviso to sub-section (5) of section 800 vide 105-111 acknowledgement no. 114212850120423.
3.4. Per contra, the ld. DR relied on the orders of the ld. CIT(E) and submitted that the assessee was provided various opportunities but the assessee had not submitted required details and therefore, the plea of the assessee is not maintainable.
3.5. We have heard the rival contentions and perused material available on record. The Bench noted that application of the assessee pertaining to registration application u/s 12AB of the Act has been rejected the ld. CIT(E) application on the ground that Form No.10AB is incomplete, assessee is not registered under Rajasthan Public Trust Act, 1959 [ for short “RPT”] and the genuineness of the activities is not established. So far as the contention of the ld. CIT(E), the assessee is not registered under RPT Act and the assessee filed at page 44 that the registration under RPT Act is at finalization stage. The other two observations being curable in nature where we are of the considered view that there is a force in the argument advanced by the ld. AR of the assessee and therefore, we are of the considered view that the assessee may be given one more chance to clarify/submit all the issues raised by ld. CIT(E). In the light of the overall facts and circumstances of the case, the bench noted that the reasons advanced by the ld. CIT(E) while rejecting the application of the assessee are curable in nature and considering the peculiar facts of the case that the assessee is at the last stage of registration process under Rajasthan Public Trust Act, 1959 and thus, the liberal view of the matter is required to be taken in this case as the defect pointed out are not that much serious and if given a chance the assessee is in a position to clear the defects pointed out by the ld. CIT(E). Considering this aspect of the case the Bench does not want to go into merit of the dispute but it is imperative that the assessee must be provided adequate opportunity of being heard and be given a fair chance by the ld. CIT(E) to cure the defect / non submission of the certain information. In the light of this aspect of the case, the Bench feels that the assessee should be given one more chance to contest the case before the ld. CIT(E) and the assessee is directed to produce all the relevant papers concerning both the applications so filed before the ld. CIT(E) to settle the dispute raised hereinabove.
4.1 As regards the appeal of the assessee relating to approval u/s 80G of the Act, the Bench noted that since it is consequential to registration of the Trust u/s 12AB of the Act, the ld. CIT(E) is directed to consider approval u/s 80G in accordance with Income Tax Act, 1961 in set aside proceedings.
5.1 Before parting, we may make it clear that our decision to restore the matter back to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law.
6.0 In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 13/01/2025.
Sd/- Sd/- ¼ xxu xks;y ½ ¼MkWa-,l-lhrky{eh½ (GAGAM GOYAL) (Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 13/01/2025 *Santosh * आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- Vishwakarma Shram Seva Nyash, Jaipur 1. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZQkbZy@ Guard File & 686/JPR/2024) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत