SHREE SHIV GOW RAKSHAK GOW SALA SAMITI HIMATNAGAR,HIMATNAGAR vs. CIT EXEMPTION, JAIPUR, JAIPUR
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)
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Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual
Before: SHRI LALIET KUMAR, HONBLE & DR. MITHA LAL MEENA, HONBLE
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.
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 the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 17/06/2025 in the open court. - (LALIET KUMAR) JUDICIAL MEMBER Dated:../6/2025 Copies to : (1) The appellant. (2) The respondent. (DR. MITHA LAL MEENA) ACCOUNTANT MEMBER (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By Oder
