ECK WELFARE TRUST,IPIA vs. CIT EXEMPTION, KAILASH HEIGHT

& 733/JPR /2024 ECK WELFARE TRUST, KOTA VS CIT (EXEMPTION), JAIPUR Vide reply 25-12-2023, the applicant stated that:- ‘the trust is duly registered under the Sub-Registrar, Kota-II….’ Thus it is clear that the applicant is not registered under RPT Act, 1959. Therefore, in light of above discussion and in the absence of registration under Rajasthan Public Trust Act, 1959, the applicant is not eligible for registration u/s 12AB. Thus the application of the assessee is liable to be rejected on this ground.

 Registration under Rajasthan Public Trust Act, 1959.

04. Further 12AB (1)(b)(ii)(B) of the Income Tax Act. 1961 also state that if CIT is not satisfied has to pass order rejecting such application and also cancelling its earlier registration. Thus, it is clarified that applicant's provisional registration under clause (vi) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act. 1961 dated 28.05.2021 is also being cancelled. Further assessee has failed to give proper justification for regularization of provisional registration, thus with this order provisional registration is also lapsed and cancelled.’’ 3.2 Apropos to the ground so raised by the assessee in the ld. CIT(E) rejected the assessee’s claim of exemption u/s 80G of the Act by observing as under:- ‘’3.4. In view of the above the present application filed in Form No.10AB under clause (iii) of first proviso to sub-section (5) of sec 80G of the Act is liable to be rejected as non-maintainable & 733/JPR /2024 ECK WELFARE TRUST, KOTA VS CIT (EXEMPTION), JAIPUR 04. In view of above discussion applicant's application for approval u/s 80G is liable to be rejected and thus being rejected on following grounds  Approval u/s 80G cannot be granted without registration u/s 12AB  Commencement of activities

5. Further 2nd proviso to 80G(5) also state that if CIT is not satisfied has to pass order rejecting such application and also cancelling its earlier approval. Thus, it is clarified that applicant provisional approval under clause (iv) of first proviso to sub section (5) of section 80G of the Income Tax Act 1961 dated 31.05.2021 is also being cancelled. Further assessor has failed to give proper justification for regularization of provisional approval, thus with this order provisional approval is also lapsed and canceled.’’ 3.3 During the course of hearing, the ld. AR of the assessee in both the appeals mainly submitted that the assessee was not provided adequate opportunity of being heard by the ld. CIT(E) and thus both the orders should be quashed being against the principles of natural justice. Further, the ld. AR of the assessee stated at Bar that the assessee trust is in the process of applying the registration under RPT Act before the competent authority and it is likely to get the same (PB 56-59. This being the sole reason the assessee prayed for one more chance. It is also noted that the ld.AR of the assessee relied upon following decisions of ITAT Jaipur Benches on the similar issue praying therein that it case may also be set aside for statistical purposes and set aside to CIT(E).

& 733/JPR /2024 ECK WELFARE TRUST, KOTA VS CIT (EXEMPTION), JAIPUR .1 Paraedise Sarv Kalyan Sansthan vs CIT(E) (ITA No.401 & 402/JPR/2024 dated 10-0702024 (PB 124-129) 2. Acharya Shri Hira Laxmi Guru Jain Gaushala Sansthan vs CIT (E) (ITA Nos.697 & 608/JPR 2024 dated14-08-2024 [PB 130-142] 3. Bhaamashah Sunderlal Daga Charitable Trust vs CIT(E) (ITA No.278/Jodh/2023 dated 10-11-2023 3.4. Per contra, the ld. DR relied on the orders of the ld. CIT(E). 3.5 After hearing both parties and perusing the materials available on record, we noticed that an application for registration u/s 12AA of the Act was rejected by the ld CIT(E) on the ground that the assessee is not registered under RPT Act, 1959 and in this regard, the ld. AR of the assessee stated at Bar that the assessee trust is in the process of applying the same before the competent authority and it is likely to get the same. Therefore, in these circumstances, we restore the matter back to the file of the ld. CIT(E) with the direction that as and when the assessee trust produces the copy of the Registration under RPT Act, 1959 then the application of the assessee trust for registration u/s 12AA of the Act be decided afresh in accordance with law. 3.6 Since we have restored the appeal of the assessee with regard to the registration u/s 12AA of the Act to the file of the ld. CIT(E) for afresh & 733/JPR /2024 ECK WELFARE TRUST, KOTA VS CIT (EXEMPTION), JAIPUR adjudication, therefore, the outcome of appeal of the assessee u/s 80G of the Act is consequential in nature. 3.7 Before parting, we may make it clear that our decision to restore the matter back (supra) to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law.

4.0 In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 10/12/2024 Sd/- Sd/- ¼jkBksM deys'kt;UrHkkbZ ½ ¼MkWa-,l-lhrky{eh½ (RATHOD KAMLESH JAYANTBHAI) (Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member U;kf;dlnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 10 /12/2024 *Mishra आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- M/s. ECK Welfare , Kota 1. 2. izR;FkhZ@ The Respondent- The ld CIT(E), Jaipur 3. vk;djvk;qDr@ The ld CIT 4. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZQkbZy@ Guard File (ITA No. 732 & 733/JPR/2024) vkns'kkuqlkj@ By order,

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