BJS PINKCITY,JAIPUR V. CIT (EXEMPTION), JAIPUR, JAIPUR

ITA 723/JPR/2024

AI Insights

The case involves BJS Pinkcity, a trust, appealing against the decision of the CIT(Exemption), Jaipur, which rejected their application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(Exemption) had initially rejected the application due to the trust's non-registration under the Rajasthan Public Trust Act, 1959, and concerns regarding the genuineness of the trust's activities. The Tribunal found merit in the appeal, noting that registration under the Rajasthan Public Trust Act is not mandatory for approval under Section 12AB, and allowed the trust another opportunity to substantiate the genuineness of its activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298498 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2024-2025
• Other Referred Cases: APJ Abdul Kalam Education and Welfare Trust, ITA No. 567/JPR/2024
• Laws Referred To: Income Tax Act, 1961, Rajasthan Public Trust Act, 1959
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARVIND KUMAR
• Assessee Lawyers: RAJEEV SOGANI
• Keywords: Set aside; Opportunity of being heard

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh xxu xks;y] ys[kk lnL;] ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI GAGAN GOYAL, AM vk;dj vihy la-@ITA. No. 723/JPR/2024 BJS Pinkcity PE-4, Malviya Industrial Area, Malviya Nagar, Jaipur. Vs. The CIT-Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.:AAIAB8312K vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby :Shri Rajeev Sogani, C.A. jktLo dh vksjls@Revenue by: Shri Arvind Kumar, CIT-DR lquokbZ dh rkjh[k@Date of Hearing :10/03/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 22/04/2025 vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M. The present appeal is filed by the assessee against the order passed by the Learned Commissioner of Income Tax (Exemption), Jaipur [herein after referred to as “CIT(E)”] dated 23.03.2024 thereby rejecting the registration under section 12AB of the Income Tax Act, 1961(in short “Act”). 2 ITA No. 723/JPR/2024 BJS Pinkcity, Jaipur 2.1 The assessee has raised following ground: - “1.In the facts and circumstances of the case and in law, Ld. CIT(E) has erred in not granting regular registration to the assessee trust under section 12Ab of Income Tax Act, 1961. The action of the ld. CIT(E) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by directing Ld. CIT(E) to grant registration, to the assessee trust, under section 12AB of the Income Tax Act, 1961. 2. The assessee trust craves its rights to add, amend or alter any of the grounds on or before the hearing. 2.2 The assessee has also raised following additional ground:- “ In the facts and circumstances of the case and in law, Ld. CIT(E) has erred in cancelling the provisional registration of the appellant trust. The action of the ld. CIT(E) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by directing ld. CIT(E) to restore the provisional registration.” 3. Brief facts of the case are that the assessee-applicant filed an online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 was filed on 30.09.2023. A letter/notice dated 29.01.2024 was issued at the e-mail/address provided in the application requiring the assessee-applicant to submit certain documents/explanations by 09.02.2024. In compliance of same the assessee-applicant furnished reply which was examined and some discrepancies were found. Thereafter, a show cause letter/notice was issued to theassessee- applicant notice dated 05.03.2024 wherein date of hearing was fixed on 11.03.2024 to submit complete details/information. On 11.03.2024 the assessee-applicant has sought for adjournment. Therefore, vide this office notice dated 14.03.2024 the 3 ITA No. 723/JPR/2024 BJS Pinkcity, Jaipur case was adjourned to 19.03.2024. But the assessee-applicant had not produced any details/documents till date. Therefore, the case is decided on the basis of material filed by the assessee-applicant along with its application in Form no. 10AB.While dealing with the application for registration the ld. CIT(E) has passed the order by observing as under:-  Registration with RPT Act, 1959.  Genuineness of Activities. 4. Aggrieved from the above order of the ld. CIT(E) the assessee is in appeal before us challenging the order. In addition, Ld. AR of the assessee also submitted that their application for registration u/s 12AB of the Act was rejected only on account of the fact that the assessee-applicant non registered under RPT Act. Based on that application so filed, the ld. AR of the assessee submitted that the assessee should be given one chance to consider the merits of the registration of the assessee-applicant trust. 5. Per contra, ld. DR replied upon the orders of the ld. CIT(E) and stated that the assessee was not registered under RPT Act as on the date of application and therefore, the order of the ld. CIT(E) be sustained. 4 ITA No. 723/JPR/2024 BJS Pinkcity, Jaipur 6. We have carefully considered the rival submissions and perused the material available on record. The CIT(E) rejected the application on two grounds as per page 11 of the impugned order: 1. Non-registration under Rajasthan Public Trust Act, 1959: 2. Genuineness of Activities: We note in respect of the registration under Rajasthan Public Trust Act, 1959, the appellant trust has produced on record the copy of the application dated 30.10.2024 seeking registration under the said Act. We find merit in restoring this matter to the file of CIT(E), allowing an opportunity for the appellant to submit the final registration certificate under the Rajasthan Public Trust Act, 1959. Nonetheless, we reiterate that registration under Rajasthan Public Trust Act, 1959, is not mandatory for granting approval under Section 12AB of the Income Tax Act, as consistently held by this Bench in several earlier decisions. Similar such issue has been examined by the coordinate bench in the case of APJ Abdul Kalam Education and Welfare Trust, ITA No. 567/JPR/2024, vide order dated 15.01.2025. Regarding the genuineness of the trust's activities, it appears from the order of the ld. CIT(E) that the appellant could not submit all the necessary details required by the ld. CIT(E). Considering that the matter is being restored for compliance concerning Rajasthan Public Trust Act registration, we deem it appropriate and in 5 ITA No. 723/JPR/2024 BJS Pinkcity, Jaipur the interest of justice to remit this aspect as well to the ld. CIT(E), directing the appellant trust to furnish all requisite details to substantiate the genuineness and charitable nature of its activities. In view of the above, we set aside the order of the CIT(E) and restore the matter back to him with directions that; (i) The assessee trust shall submit the registration certificate under Rajasthan Public Trust Act, 1959, once obtained, before the CIT(E); (ii) The assessee trust shall also provide all necessary details to establish the genuineness and charitable nature of its activities. The CIT(E) shall consider these submissions afresh and decide the matter in accordance with law, after affording sufficient opportunity of being heard to the appellant trust. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 22/04/2025. Sd/- Sd/- ¼ xxu xks;y ½ ¼MkWa-,l-lhrky{eh½ (Gagan Goyal) (Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 22/04/2025 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 6 ITA No. 723/JPR/2024 BJS Pinkcity, Jaipur 1. vihykFkhZ@The Appellant- BJS Pinkcity, Jaipur. 2. izR;FkhZ@The Respondent- CIT(E), Jaipur. 3. vk;djvk;qDr@CIT 4. vk;dj vk;qDr@CIT(A) 5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur. 6. xkMZ QkbZy@Guard File {ITA No. 723/JPR/2024} vkns'kkuqlkj@By order lgk;d iathdkj@Asst. Registrar "