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Facts
The assessee filed applications for registration under Section 12AB and approval under Section 80G(5). The CIT (Exemption) rejected these applications, citing the assessee's lack of registration under the Rajasthan Public Trust Act, 1959, and failure to prove the genuineness of its activities. However, the assessee subsequently obtained registration under the Rajasthan Public Trust Act.
Held
The Tribunal noted that the assessee has since obtained registration under the Rajasthan Public Trust Act. Considering the principles of natural justice, the Tribunal decided to remand the matter back to the CIT (Exemption) for fresh adjudication regarding both the registration under Section 12AB and the approval under Section 80G(5).
Key Issues
Whether the CIT correctly rejected the applications for registration under Section 12AB and approval under Section 80G(5) based on the initial lack of registration under the Rajasthan Public Trust Act and alleged lack of genuineness. Whether the matter should be remanded for fresh consideration given the subsequent registration under the Rajasthan Public Trust Act.
Sections Cited
12AB, 80G(5), 12A(I)(ac)(iii), Rajasthan Public Trust Act, 1959
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Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual
Before: SHRI LALIET KUMAR, HONBLE & DR. MITHA LAL MEENA, HONBLE
These appeals by the assessee are directed against the separate orders of the Commissioner of Income Tax (Exemption), Jaipur (hereinafter referred to "the CIT Exemption"] even dated 28.12.2024, challenging therein rejection of its separate application filed in Form 10AB for registration under section 12AB and approval u/s 80G(5) of the Income Tax Act (In short 'the act').
After hearing both the sides and perusal of record, we find that the Ld. CIT exemption has rejected the applications filed by the assessee u/s 12A(I)(ac)(iii) in Form No. 10AB seeking registration u/s 12AB of IT Act, 1961 on the ground that Firstly the assessee was not registered under Rajasthan Public Trust Act, 1959 (In short 'RPT Act') and secondly the assessee has failed to prove the genuineness of its activities. It is seen that the assessee trust has been for registration under Rajasthan Public Trust Act, 1959 and that the assessee has been registered under RPT Act on 24.06.2024 (APB, Pg. 18), after 6 months to rejection of its application by the CIT (Exemption) vide its order dated 18/03/2024. 3. The Ld. AR requested that the issue be set aside to Ld. CIT (E) with a direction to grant registration as the registration has already been granted under Rajasthan Public Trust Act, 1959 as above. The AR submitted that the issue of registration u/s 12AB may be restored to the file the CIT Exemption with direction to examine the matter afresh as per amended law after affording adequate opportunity of being heard. The AR undertakes to make compliance to all the quarries of the CIT exemption in the fresh proceedings. The Ld. CIT(DR) has no objection to the request of the assessee, in view of the fact that presently, it has been granted the registration under Rajasthan Public Trust Act, 1959. 4. Accordingly, we are of the view that it would be appropriate to remand the matter back to the file of the Ld. CIT Exemption to examine the appellants application for registration u/s 12AB of the act afresh judiciously in the light of the registration under RPT Act as it was claimed to be pending before the competent authority. Another issue questioned by the Ld. CIT Exemption regarding genuineness of activities of the Trust may also be examined in accordance with law.
Considering the peculiar facts of the instant case, we are of the considered view that the assessee has good and arguable case for granting registration u/s 12AB of the Income Tax Act, 1961. In view of principles of natural justice, we consider it deem fit to remand back the matter regarding grant of registration under section 12 AB of the Income Tax Act to the file of the Ld. CIT exemption for afresh adjudication after granting adequate opportunity of being heard and considering the written submissions filed on the record and to be filed during fresh proceedings. Appellant and its council are also directed to cooperate in the fresh proceedings by filing the requisite details in compliance to the queries raised by the learned CIT exemption for the purpose of adjudication of the matter of grant of registration act section 12AB of the Act, in accordance with law.
Accordingly, the matter is restored to the file of the Ld. CIT Exemption to examine the application of the assessee Trust de novo for the purpose of Registration u/s 12AB of the Act as per the mandate.
In ITA No. 92/Jodh/2025 [u/s 80G (5)] The Ld. CIT exemption while rejecting the application for approval under section 80 G(5) has observed that the application for approval u/s 80G cannot be granted without registration u/s 12 AB of the Act. Since, matter of registration u/s 12 AB has been restored back to the file of the learned CIT exemption for afresh adjudication and therefore the issue of approval u/s 80G(5) is also remanded back to the file of the CIT exemption to be adjudicated together with the application for registration the u/s 12 AB of the Act after allowing adequate opportunity of being heard in accordance with law.
In the result, both the captioned appeals of the assessee are allowed for statistical purposes. Order pronounced on.30../10/2025 in the open court. - (LALIET KUMAR) JUDICIAL MEMBER Doc* A - (DR. MITHA LAL MEENA) ACCOUNTANT MEMBER Dated: 30../10/2025 Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By Oder