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Facts
The assessee's application for registration under section 12AB of the Income-tax Act, 1961 was rejected by the CIT(E) primarily for not being registered under the Rajasthan Public Trust Act, 1959 and for failing to establish the genuineness of its activities. The assessee had filed the appeal with a delay, for which a condonation application was filed.
Held
The Tribunal condoned the delay in filing the appeal after finding sufficient cause. It was held that the CIT(E)'s insistence on innocuous details without appreciating the constitutional spirit behind the assessee's charitable activities was not justified. The Tribunal noted that the assessee has since obtained registration under the Rajasthan Public Trust Act, 1959.
Key Issues
Whether the rejection of the assessee's application for registration under section 12AB was justified based on the grounds cited by the CIT(E), and whether the appeal was maintainable despite the delay.
Sections Cited
12AB, Article 48, Article 51A(g)
AI-generated summary — verify with the full judgment below
Order PER LALIET KUMAR, J.M: This appeal by the assessee is directed against the order dated 13.08.2024 passed by the Ld. CIT (Exemptions), Jaipur [“CIT(E)”], whereby the assessee’s application for registration under section 12AB of the Income-tax Act, 1961 was rejected.
At the outset the Registry has pointed out that the present appeal is barred by limitation by 20 days for which the assessee had filed the condonation application for condoning the delay.
Ld. DR strongly opposed the condonation of delay.
After considering the condonation application filed by the assessee in the present appeal, we condone the delay for which sufficient cause is shown, and admit the appeal for adjudication.
In the present appeal Assessee has raised the following grounds:
That on the facts and in the circumstances of the case, the order passed by the Ld. CIT(Exemptions) is bad in law and bad in facts.
2. That on the facts and in the circumstances of the case, the Ld. CIT(Exemptions) grossly erred in recording the observation and allegation for rejecting the application for grant of registration u/s 12AB of the Act is contrary and also against the principle of natural justice.
3. That on the facts and in the circumstances of the case the Ld. CIT(Exemptions) grossly erred in rejecting the application for grant of registration u/s 12AB on ground of non registration under RPT Act, 1959. 4. That on the facts and in the circumstances of the case, the Ld. CIT(Exemptions) grossly erred in holding the activities of appellant trust are non genuine which is contrary to facts and objects / activities of charitable trust. 5. That on the facts and in the circumstances of the case, the Ld. CIT(E) Exemption) grossly erred in not appreciating the fact the object of appellant trust that solely for charitable purposes and not for any other purpose in right perspective and judicious manner. 6. That the petitioner may kindly be permitted to raise any additional or alternative grounds at or before the time of hearing. 6. The facts, in brief, are that the assessee society filed its online application in Form No. 10AB on 28.02.2024 seeking registration u/s 12AB. The Ld. CIT(E), after issuing various notices and examining partial replies, rejected the application holding that (i) the assessee was not registered under the Rajasthan Public Trust Act, 1959, and (ii) the assessee failed to establish the genuineness of its activities by not furnishing adequate records and details.
Before us, the Ld. AR submitted that the assessee has now obtained and holds registration under the Rajasthan Public Trust Act, 1959, issued by the competent authority. It was also urged that the approach of the Ld. CIT(E) was overly pedantic, as he insisted upon innocuous and irrelevant information and overlooked the genuine charitable purpose of the assessee, particularly its activities of maintaining a gaushala. It was prayed that the matter may be remitted to the file of the Ld. CIT(E) for fresh consideration.
The Ld. DR supported the order of the Ld. CIT(E) and contended that despite repeated opportunities, the assessee had failed to produce complete details, and hence the rejection was justified.
We have carefully considered the rival contentions and perused the material on record. The rejection of registration was primarily due to the alleged absence of RPT registration and the lack of supporting documents regarding the genuineness of the activities. The assessee has now produced proof of registration under the Rajasthan Public Trust Act, 1959 and has undertaken to file further documents to establish its charitable activities.
1. 9.1 In our view, the insistence on innocuous details without appreciating the larger object and constitutional spirit behind the assessee’s activities was not justified. We may note that Article 48 of the Constitution of India, falling under the Directive Principles of State Policy, casts a duty upon the State to take steps for preserving and improving the breeds and prohibiting the slaughter of cows and calves and other milch and draught cattle. Further, Article 51A(g) imposes a fundamental duty on every citizen to protect and improve the natural environment and to have compassion for living creatures. These constitutional directives underscore the importance of institutions engaged in cow protection and related charitable activities. The claim of such institutions, therefore, requires a liberal and purposive approach rather than a hyper-technical or pedantic one.
9.2. In these facts, we deem it fit to set aside the order of the Ld. CIT(E) and restore the matter to his file with a direction to examine the application afresh in accordance with law, after duly considering the assessee’s registration under the Rajasthan Public Trust Act, 1959 and the supporting evidence of charitable activities that the assessee may file. The assessee shall extend full cooperation and furnish all requisite documents. The Ld. CIT(E) shall pass a reasoned and speaking order after affording due opportunity to the assessee.
The appeal of the assessee is allowed for statistical purposes, with the matter remanded to the file of the CIT(E) for fresh adjudication.
(Order pronounced in the open Court on 30/10/2025 )