SHREE JAIN SWETAMBAR PRACHIN TIRTH,JODHPUR vs. CIT(EXEMPTION),, JAIPUR
Facts
The assessee, Shree Jain Swetambar Prachin Tirth, appealed against the CIT(E)'s order rejecting its application for registration under section 12AA of the IT Act. The assessee contended that the order was passed without adequate opportunity and due consideration of its submissions.
Held
The Tribunal held that the CIT(E) acted in a hurried and irrational manner by rejecting the application without appreciating the merits and genuineness of the trust's activities. The Tribunal considered it fit to remand the matter back for fresh adjudication.
Key Issues
Whether the rejection of the assessee's application for registration under section 12A/12AA/12AB by the CIT(E) was legally and factually sustainable, given the lack of adequate opportunity and consideration of submissions.
Sections Cited
12AA, 12A, 12AB, 12AB of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual
Before: DR. MITHA LAL MEENA, HONBLE & DR. S. SEETHALAKSHMI, HONBLE
This appeal by the assessee, is directed against the impugned order dated 11/12/2023 passed by learned CIT (Exemptions), Jaipur u/s 12AA of the IT Act challenging therein rejection of its application to granting registration under section 12A/12AA/12AB as bad in law and bad on facts.
At the outset, the learned Counsel for the assessee strongly contended that the impugned order rejecting assessee's application for registration u/s 12AA of the IT Act was passed by learned CIT(E) without giving adequate opportunity to the assessee and also without due consideration of written submissions filed by the assessee. In view of the foregoing, the learned CIT (D.R.) submitted that the issue regarding registration u/s 12AA of the IT Act may be set aside to the file of learned CIT(E) for fresh order in accordance with law after providing reasonable opportunity to the assessee and after due consideration of the assessee's submissions.
In the present case, the CIT Exemption has merely mentioned that applicant has failed to comply with the letters, despite being given three opportunities and in the absence of such details, it could not be determined whether the applicant is genuinely carrying out charitable activity as per its objects while rejecting the applicant's claim of registration u/s 12A of the Act is as liable to be rejected.
Accordingly, we hold that the Ld. CIT Exemption has acted in hurry and irrational manner while rejecting the appellants application for registration u/s 12AA/12AB of the act, without appreciating merits regarding genuineness of activities of the Trust at this stage because the assessee Trust is engaged in running a Dharamshala for accommodating the pilgrimise to Jain Temple in its activities as claimed.
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 provided adequate opportunity to establish genuineness of its activities. 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 the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 24/06/2025 in open court. - (DR. S. SEETHALAKSHMI) JUDICIAL MEMBER Dated:2.4.1.06/2025 (DR. MITH MITHA LAL MEENA) ACCOUNTANT MEMBER Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By Oder
