DHAMMA ASHOKA MEMORIAL TRUST VIRATNAGAR,JAIPUR V. CIT EXEMPTION, JAIPUR

ITA 1425/JPR/2024

AI Insights

The case involves two appeals filed by the Dhamma Ashoka Memorial Trust against the orders of the Commissioner of Income Tax (Exemption), Jaipur, which rejected the trust's applications for registration under section 12AB and recognition under section 80G of the Income Tax Act, 1961. The primary reason for rejection was the trust's non-registration under the Rajasthan Public Trust Act, 1959 at the time of application. The Tribunal noted that the trust had subsequently applied for registration under the RPT Act and deemed the reasons for the initial rejection as curable, thus restoring the matters to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36731 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL
• Assessee Lawyers: SHAILESH MANTRI
• Section: 80G

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No.1424 & 1425/JPR/2024 Dhamma Ashoka Memorial Trust Viratnagar 1, Sisodiya Rani Bagh Dhamma Tali Nagar Galta Temple, Indergarh, B.O. Chainpura, jaipur. cuke Vs. The CIT-Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.:AADTD6951C vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby :Shri Shailesh Mantri, C.A. jktLo dh vksjls@Revenue by: Smt. Runi Pal, CIT lquokbZ dh rkjh[k@Date of Hearing : 18/02/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 28/02/2025 vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M. The present of two appeals filed by the assessee challenges the order passed by the Learned Commissioner of Income Tax (Exemption), Jaipur [herein after referred to as “CIT(E)”] both dated 29.09.2024 thereby rejecting the registration under section 12AB of the Act and recognition u/s 80G of the Income Tax Act, 1961(in short “Act”) respectively. 2 ITA No. 1424 & 1425/JPR/2024 Dhamma Ashoka Memorial Trust Viratnagar vs. CIT(E) 2.1 In ITA No. 1424/JPR/2024 the assessee has raised following grounds: - “1. That the Ld. CIT(E), jaipur, has erred in facts and in law by cancelling the application uu/s 12AB(1)(b)Iii)(B) for perment registration and also canceeling the provisional approval under section 12A(1)(ac)(vi) of the Income Tax Act, 1961. 2. That the appellant craves to add, amend, and alter the grounds before or at the time of appellate hearing.” 2.2 In ITA No. 1425/JPR/2024 the assessee has raised following grounds: - “1. That the Ld. CIT(E), jaipur, has erred in facts and in law by cancelling the application u/s 80G(5) for permanent registration and also cancelling the provisional approval under clause (iv) of the second proviso to sub section (5) of section 80G of the Income Tax Act, 1961. 2. That the appellant craves to add, amend, and alter the grounds before or at the time of appellate hearing.” 3. Brief facts of the case are that the assessee-applicant trust filed on online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 on 18.03.2024. A letter/notice dated 13.06.2024 was issued at the e- mail/address provided in the application requiring the assessee to submit certain documents/explanations by 21.06.2024. In compliance thereof, the assessee furnished part reply. In response, the assessee furnished part reply. Ld. CIT(E) considered the reply with annexure and found that the assessee noteligible for the registration as the assessee applicant was not registered under Rajasthan Public Trust Act, 1959. 3 ITA No. 1424 & 1425/JPR/2024 Dhamma Ashoka Memorial Trust Viratnagar vs. CIT(E) 4. Whereas in the application for recognition u/s. 80G of the Act, was rejected on the ground that the assessee was not granted registration u/s 12AB of the Act and therefore, recognition u/s 80G of the Act was also rejected. 5. Aggrieved from the above order of the ld. CIT(E) the assessee is in appeal before this Tribunal challenging both the orders. The ld. AR of the assessee in support of contention filed a detailed paper book containing followingevidence:- S. No. Particulars Page No. 1. Form No. 10AC 1-2 2. Trust deed 3-14 3. Income Tax Return for A.Y. 2024-25 15-16 4. Income Tax Return for A.Y. 2023-24 17-18 5. Income Tax Return for A.Y. 22-23 19-20 6. Income Tax Return for A.Y. 21-22 21-22 7. Income Tax Return for A.Y. 2024-25 23-33 8. Income Tax Return for A.Y. 2023-24 34-44 9. Income Tax Return for A.Y. 22-23 45-50 5.1 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. The assessee has applied the registration under RPT Act and the proof of the same bearing dated 07.02.2025 placed on record. 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. 4 ITA No. 1424 & 1425/JPR/2024 Dhamma Ashoka Memorial Trust Viratnagar vs. CIT(E) 6. 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. 7. We have heard the rival contentions and perused material available on record. The Bench noted that the only reason in rejection of the registration of the applicant-assessee trust was that the assessee was not registered under RPT Act and therefore, the application for registration u/s 12AB of the Act was rejected. The Bench noted that since the assessee has already applied for registration under RPT Act and thereby the reasons advance for rejecting the registration of the applicant-assessee trust are curable in nature. Considering that aspect of the matter, the Bench feels that the issue of registration u/s 12AB of the be decided a fresh, based on the registration under RPT Act to be produced by the assessee. Therefore, we restore the matter of the registration u/s 12AB of the Act to the file of the ld. CIT(E) be decided afresh. The Bench also noted that recognition u/s 80G of the Act was denied because the applicant-assessee trust was not registered u/s 12AB of the Act. Since we have restored the matter of registration u/s 12AB of the Act to the file of the ld. CIT(E) and therefore, we also deem it a fit case to restore the matter of recognition u/s 80G of 5 ITA No. 1424 & 1425/JPR/2024 Dhamma Ashoka Memorial Trust Viratnagar vs. CIT(E) the Act to the file of the ld. CIT(E). In light ofthe aspect of the case both the matters are restored back to the file of the ld. CIT(E). 8. Before parting, we may make it clear that our decision to restore the matter back 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. In the result, the appeals of the assessee in ITA No. 1424& 1425/JPR/2024 are allowed for statistical purposes. Order pronounced in the open court on 28/02/2025. Sd/- Sd/- ¼jkBkSM+ deys'k t;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:- 28/02/2025 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Dhamma Ashoka Memorial Trust Viratnagar, Jaipur. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. vk;dj vk;qDr¼vihy½@The ld CIT(A) 5. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZQkbZy@ Guard File ITA No. 1424&1425/JPR/2024) vkns'kkuqlkj@ By order, lgk;diathdkj@Asstt. Registrar "