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Facts
The assessee, Shri Jamunadhar Jai Devi Johari Charitable Trust, filed applications for registration under sections 12AB and 80G of the Income Tax Act. The CIT(E) rejected these applications, stating that the trust was not registered under the Rajasthan Public Trust Act, 1959, which the assessee contested, providing proof of registration. The CIT(E) also rejected the 80G application based on the denial of 12AB registration.
Held
The Tribunal noted that the primary objection by the CIT(E) was the trust's registration status under the Rajasthan Public Trust Act, 1959. The assessee provided evidence of its registration. The Tribunal found that the rejection of the 80G application was consequential to the 12AB rejection. Therefore, the Tribunal set aside the orders of the CIT(E) for both applications.
Key Issues
Whether the CIT(E) was justified in rejecting the applications for registration under Section 12AB and approval under Section 80G based on the alleged lack of registration under the Rajasthan Public Trust Act, 1959, when the trust claims to be duly registered.
Sections Cited
12A, 12AB, 80G
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
Before: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh lanhi xkslkbZ] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;arHkkbZ] ys[kk lnL; ds le{k BEFORE: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM , vk;dj vihy la-@ITA No. 525 & 526/JPR/2024 Shri Janunadhar Jai Devi Johari cuke CIT Exemption, Vs. Charitable Trust Jaipur. S 249, Mahaveer Nagar, Tonk Road, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAITS0453M vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri Rames Lakhera- Proxy jktLo dh vksjls@Revenue by:Shri Arvind Kumar (CIT) lquokbZ dh rkjh[k@Date of Hearing : 01/07/2024 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 04/07/2024 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM
The present two appeals filed by assessee, which are arising out of the order of thelearned Commissioner of Income Tax (Exemptions), Jaipur dated 21.02.2024 & 31.03.2024 [here in after referred as “CIT(E)”].
2.1 In the assessee has raised following grounds: - “
Ground No.
1. CIT(E) has wrongly rejected the application for registration of assessee trust u/s 12A stating that Trust is not registered with RPT Act, 1959 whereas the trust is duly registered with sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No.
2 & 526/JPR/2024 Shri Jamunadhar Jai Devi Johari Charitable Trust vs. CIT(E) 2006397015321 dated 30.12.2006 issued by the Sub Registrar of Trust under the State Government of Rajasthan Jaipur. Hence CIT(E) order should be made null and void and CIT(E) may be directed for granting 12A registration. Ground No. 2 The appellant prays your honour to add, amend or alter all or any of the grounds of the appeal on or before the date of hearing.”
2.2 In ITANo. 525/JPR/2024 the assessee has raised following grounds: -
“Ground No. 1 CIT(E) has wrongly rejected the application for registration of assessee trust u/s 80G stating that the applicant is not eligible for approval under clause (ii) of first provisio to sub-section (5) of Section 80G of the Act, as not already registered under clause (i) or (iii) of first proviso to 80G(5) of the Act. Hence CIT(E) order should be made null and void and CIT(E) may be directed to grant 80G registration u/s 80G. Ground No. 2 The Appellant prays your honour to add amend or alter all or any of the grounds of the appeal on or before the date of hearing.”
First, we take up the appeals of the assessee in wherein the brief fact of the case are that the assesseefiled an online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 was filed on 29.09.2023. A letter/notice No. ITBA/EXM/F/EXM43/2023-24/1058614696(1) dated 09.12.2023 was issued at the e- mail/address provided in the application requiring the assessee to submit certain documents/explanations by 20.12.2023. In response the assessee sought adjournment on 20.12.2023 through DAK but subsequently filed reply on 20.12.2023 which was examined and placed on record by the ld. CIT(E). Thereafter, a reminder letters was issued to the 3 & 526/JPR/2024 Shri Jamunadhar Jai Devi Johari Charitable Trust vs. CIT(E) assessee vide dated 05.01.2024 & 17.01.2024 wherein date of hearing was fixed on 12.01.2024 & 01.02.2024. In response to these notices the assessee sought adjournment on 12.01.2024 & 31.01.2024 through DAK. Further, a reminder letter also given vide dated 11.02.2024 and case was fixed on 15.02.2024. Again, reminder letter was given vide dated 23.02.2024 and case was fixed on 26.02.2024. In response the assessee filed its reply on 13.02.2024 through e-mail which was examined and placed on record by the ld. CIT(E). A show cause notice / letter was given on 16.03.2024 and case was fixed on 20.03.2024. In response the assesseefurnishes its reply on 20.03.2024 which was also examined and placed on record by the ld. CIT(E). Since it was limitation matter, therefore the case was decided based on material available onrecord.
So far as the appeal in ITA No. 525/JPR/2024 we note that the said application for registration was not considered by ld. CIT(E) on the point that the applicant is not eligible for approval under clause (ii) of first proviso to sub-section (5) of section 80G of the Act since it was not already approved under clause (i) or (III) of first proviso to sub-section (5) of section 80G. To clarify the same, the applicant was issued a letter/notice No. ITBA/EXM/F/EXM43/2023-24/1059417726(1) dated 05.01.2024 to withdraw its application in Form 10AB or to justify its claim for approval under clause
4 & 526/JPR/2024 Shri Jamunadhar Jai Devi Johari Charitable Trust vs. CIT(E) (ii) of first proviso to sub-section (5) of section 80G of the Act on or before 12.01.2024. However, the applicant didn't comply on the above show cause. Therefore, application filed on 29.09.2023 in Form 10AB for grant of approval under clause (ii) of first proviso to sub-section (5) of section 80G was hereby rejected as being in-fructuous.
Feeling dissatisfied with the order of the ld. CIT(E) the assessee has preferred these appeals on the grounds as reiterated here in above. Apropos to the ground so raised the ld. AR of the assessee submitted the following written submission:- “ The assessee Trust is a charitable trust working for Relief of the Poor implies all actions to assist the Poor who are needy and who deserve to be addressed and developing other learning skills in local schools and communities, provide inclusive education to children with special needs and work as a catalyst to bring sustainable change in the lives of the children and preservation of environment including watersheds, forests and wildlife. The assessee trust has been doing charitable activities for the past many years. Trust is duly registered with Sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No. 2006397015321 dated 30-12-2006 issued by the Sub Registrar of Trust under the State Government of Rajasthan Jaipur.
The assessee trust had filed Form 10A for Provisional Registration and the Provisional Registration was granted to the assessee in Form 10AC on 08.02.2022 with Unique Registration Number AAITS0453ME20212, valid till A.Y. 2024-25. The applicant filed application on 29.09.2023 in Form No. 10AB for seeking approval u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961. The assessee trust was issued a letter/notice No. ITBA/EXM/F/EXM43/2023-24/1058614696(1) dated 09.12.2023 requesting it to furnish certain documents/explanations by 20.12.2023. The trust is duly registered with Sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No. 2006397015321 dated 30-12-2006 issued by the Sub Registrar
5 & 526/JPR/2024 Shri Jamunadhar Jai Devi Johari Charitable Trust vs. CIT(E) of Trust under the State Government of Rajasthan Jaipur. Hence our trust is duly registered by the State Government of Rajasthan under The Rajasthan Trust Act, 1959. However, Trust Registration Certificate, Form 10AB and Charitable Activities were not considered, hence assessee trust is under appeal before your Honor.
With these facts and background of case, grounds of appeal are dealt as under:
Ground No. 1 CIT(E) has wrongly rejected the application for registration of assessee trust u/s 12A stating that Trust is not registered with RPT ACT. 1959 whereas the trust is duly registered with Sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No. 2006397015321 dated 30-12-2006 issued by the Sub Registrar of Trust under the State Government of Rajasthan Jaipur. Hence CIT(E) order should be made null and void and CIT(E) may be directed for granting 12A registration. Ground No. 2 The appellant prays your honor to add, amend or alter all or any of the grounds of the appeal on or before the date of hearing.” -JPR-2024 “The assessee Trust is a charitable trust working for Relief of the Poor implies all actions to assist the Poor who are needy and who deserve to be addressed and developing other learning skills in local schools and communities, provide inclusive education to children with special needs and work as a catalyst to bring sustainable change in the lives of the children and preservation of environment including watersheds, forests and wildlife. The assessee trust has been doing charitable activities for the past many years. Trust is duly registered with Sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No. 2006397015321 dated 30-12-2006 issued by the Sub Registrar of Trust under the State Government of Rajasthan Jaipur. The assessee trust had filed Form 10A for Provisional Registration and the Provisional Registration was granted to the assessee in Form 10AC on 08-02-2022 with Unique Registration Number AAITS0453MF20228, valid till AY 2024-25. The applicant filed application on 29.09.2023 in Form No. 10AB vide Acknowledgement Number 345256790290923 for seeking approval u/s 80G(5)(ii) of the Income Tax Act, 1961. The Trust was issued a letter/notice No. ITBA/EXM/F/EXM43/2023- 24/1059417726(1) dated 05-01-2024 requesting it to furnish certain documents/explanations by 12-01-2024. Trust is duly registered with Sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No. 2006397015321 dated 30-12-2006 issued by 6 & 526/JPR/2024 Shri Jamunadhar Jai Devi Johari Charitable Trust vs. CIT(E) the Sub Registrar of Trust under the State Government of Rajasthan Jaipur. However, Trust Registration Certificate, 80G Provisional Registration and Charitable Activities were not considered, hence assessee trust is under appeal before your Honor. With these facts and background of case, grounds of appeal are dealt as under: Ground No.
1. CIT(E) has wrongly rejected the application for registration of assessee Trust u/s 80G stating that The applicant is not eligible for approval under clause (ii) of first proviso to sub section (5) of section 80G of the Act, as not already registered under clause (i) or (iii) of first proviso to 80G(5) of the Act. Hence CIT(E) order should be made null and void and CIT(E) may be directed to grant 80G registration u/s 80G. Ground No.
2. The appellant prays your honor to add amend or alter all or any of the grounds of the appeal on or before the date of hearing.”
During hearing, the ld. AR of the assessee so far as in relation to the rejection of 12AB only objection of the ld. CIT(E) is that the assessee is not registered under the Rajasthan Public Trust Act, 1959. Whereas the trust is duly registered with Sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No. 2006397015321 dated 30-12-2006 issued by the Sub Registrar of Trust under the State Government of Rajasthan Jaipur. This being the mistake of the fact and is curable in nature and there is no other reason advancing while rejecting the registration of the assessee.As regards the application for the recognition of the assessee trust u/s. 80G of the Act the bench noted that the same is rejected as the assessee is not approved u/s. 12AB of the Act.
7 & 526/JPR/2024 Shri Jamunadhar Jai Devi Johari Charitable Trust vs. CIT(E) 7. Per contra, the ld. DR relied on the detailed order of the ld. CIT(E) and did not raise any specific objection to the prayer of the assessee.
We have heard the rival contentions and perused material available on record. The bench noted the application of theassessee for registration u/s. 12AB was rejected on the objection of fact that the assessee is not registered under the Rajasthan Public Trust Act, 1959. But in the fact the ld. AR of the assessee submitted that the assessee trust is duly registered with Sub Registrar, Jaipur under the Rajasthan Public Trust Act, 1959 vide Registration Endorsement Serial No. 2006397015321 dated 30-12-2006 issued by the Sub Registrar of Trust under the State Government of Rajasthan Jaipur. Thus, in the interest of justice the ld. AR of the assessee submitted that the assessee be given a chance to defend this merit before the ld. CIT(E)and this mistake of the fact is curable in nature we considered the prayer of the assessee for registration of the trust u/s. 12AB of the Act and the 80G recognition application was rejected only on the ground that the assessee is not eligible for approval under clause (ii) of first proviso to sub-section (5) of section 80G of the Act since it was not already approved under clause (i) or 8 & 526/JPR/2024 Shri Jamunadhar Jai Devi Johari Charitable Trust vs. CIT(E) (iii) of first proviso to sub-section(5) of section 80G. Since, we are set aside the order in 526/JP/2024 for taking a fresh decision of registration of trust u/s. 12AB based on the facts discussed above. We also deem it fit to set aside the order of the ld. CIT(E) for recognition of the trust u/s. 80G of the Act and ld. CIT(E) should decide both the application a fresh.
In the result, for statistical purposes, both the appeals are treated as allowed. Order pronounced in the open court on 04/07/2024.
Sd/- Sd/- ¼ lanhi xkslkbZ ½ ¼ jkBkSM deys’k t;arHkkbZ ½ (Sandeep Gosain) (Rathod Kamlesh Jayantbhai) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Tk;iqj@Jaipur fnukad@Dated:- 04/07/2024 *Santosh आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- Shri Jamunadhar Jai Devi Johari Charitable Trust, Jaipur 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;dj vk;qDr@ The ld CIT 4. vk;dj vk;qDr ¼vihy½@The ld CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File (ITA No. 525& 526/JPR/2024) vkns'kkuqlkj@ By order,
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