SHREE SHIV GOW RAKSHAK GOW SALA SAMITI HIMATNAGAR,HIMATNAGAR vs. CIT EXEMPTION, JAIPUR, JAIPUR

PDF

ITA 258/JODH/2024Status: DisposedITAT Jodhpur17 June 2025AY 2022-23Bench: SHRI LALIET KUMAR, HON'BLE (Judicial Member), DR. MITHA LAL MEENA, HON'BLE (Accountant Member)1 pages

AI SummaryAllowed

Facts

The assessee's application for registration under section 12AB of the Income Tax Act, filed in Form 10AB, was rejected by the CIT (Exemption). The grounds for rejection were that the assessee was not registered under the Rajasthan Public Trust Act, 1959, and had failed to prove the genuineness of its activities. However, it was later noted that the assessee was indeed registered under the Rajasthan Public Trust Act, 1959.

Held

The Tribunal noted that the CIT (Exemption) acted in a hurried and irrational manner by rejecting the application without considering the submission on the genuineness of activities. The Tribunal found that the assessee had a good and arguable case for registration and, in the interest of natural justice, decided to remand the matter back to the CIT (Exemption) for fresh adjudication.

Key Issues

Whether the rejection of the application for registration under Section 12AB of the Income Tax Act was justified, considering the assessee's registration under the Rajasthan Public Trust Act and the genuineness of its activities.

Sections Cited

12AB, 12A(I)(ac)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual

Before: SHRI LALIET KUMAR, HONBLE & DR. MITHA LAL MEENA, HONBLE

For Appellant: Shri Rajesh Bhawsinghka, Advocate

For Respondent: Shri O.P. Meena, CIT-DR

Hearing: 20.05.2025Pronounced: 17.06.2025

DR. MITHA LAL MEENA, A.M.: This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Jaipur (hereinafter referred to "the CIT Exemption"] dated 15.02.2024, challenging therein rejection of its application filed in Form 10AB for registration under section 12AB 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 rejecte') application 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 filed application for registration under Rajasthan Public Trust Act, 1959 and that the assessee is registered on under Rajasthan Public Trust Act, 1959 (In short 'RPT Act') on 07/04/2025. 3. Therefore, The Ld. AR requested that the matter 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.

Accordingly, we consider it deem appropriate that the appellant should be given one more opportunity to prove its claim before the LD. CIT Exemption. From the record, it is seen that the Ld. CIT Exemption has acted in hurry and irrational manner while rejecting the appellants application for registration u/s 12AB of the act, merely on account of registration under RPT Act without considering the submission on genuineness of activities of the Trust.