DR MPK HOMEOPATHIC MEDICAL COLLEGE HOSPITAL & RESEARCH CENTRE SOCIETY,JAIPUR V. CIT EXEMPTION, JAIPUR, JAIPUR

ITA 1574/JPR/2024

AI Insights

The case involves Dr. MPK Homeopathic Medical College Hospital & Research Centre Society, which appealed against the order of the Learned CIT(E) rejecting their application for approval under section 10 of the Income Tax Act, 1961. The rejection was based on three grounds: non-registration under the Rajasthan Public Trust Act, 1959, the objects of the applicant not being solely for education, and non-genuineness of activities and non-compliance. The Tribunal found that the Learned CIT(E) had provided ample opportunities for the applicant to present their case and that the principles of natural justice were followed. However, due to the significance of the issues involved, the matter was remanded back for a fresh decision, excluding the issue of registration under the RPT Act, 1959.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36749 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Other Referred Cases: APJ Abdul Kalam Education and Welfare Trust vs. CIT(E), Baba Banda Singh Bahadur Education Trust
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARVIND KUMAR
• Assessee Lawyers: R.S. POONIA
• Keywords: Condonation of delay; Set aside; Corroborative evidences; Principle of natural justice
• Section: 10

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A-Bench” JAIPUR Jh xxu xks;y] ys[kk lnL; ,o aJh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 1573 & 1574/JPR/2024 Dr. MPK Homeopathic Medical College Hospital & Research Centre Society, Sindhi Camp Station Road, Jaipur. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATD3814F vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri R.S. Poonia, C.A. jktLo dh vksjls@Revenue by: Shri Arvind Kumar, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 01/04/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 01/04/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . This common order is to dispose of the above two captioned appeals filed by the appellant-society, feeling aggrieved by one order, passed by Learned CIT(E) on 30.09.204. 2. Vide impugned order, Learned CIT(E) rejected the application filed by the applicant u/s clause (iii) of first proviso to clause 23C of section 10 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”), thereby rejecting the prayer of the applicant for approval under the above said provisions. Application was rejected on the following three grounds:- 2 ITA No.1573 & 1574/JPR/2024 Dr. MPK Homeopathic Medical College Hospital & Research Centre Society  Non Registration under Rajasthan Public Trust Act, 1959.  The objects of the applicant are not solely for education.  Non-genuineness of activities and non-compliance. Why Two Appeals against one order? 3. As noticed above, impugned order is one, but the applicant has filed two appeals. While going through last paragraph of the impugned order, it has transpired that learned CIT(A) cancelled even provisional registration of the applicant society. So, it appears that in order to challenge cancellation of provisional registration, separate appeal has been filed. Legally speaking, only one appeal, and not two, was required to be filed. So challenge cancellation of the provisional registration, only one more ground of appeal in the memorandum of appeal would have served the purpose. As a result, we hold that one of the two appeals by the same party against one order is not maintainable. 4. Accordingly, the second mentioned appeal is hereby dismissed being not maintainable. Condonation of delay-Whether the application deserves to be allowed? 3 ITA No.1573 & 1574/JPR/2024 Dr. MPK Homeopathic Medical College Hospital & Research Centre Society 5. As noticed above, the impugned order is dated 30.09.2024. Since the appeal came to be presented on 31.12.2024, application seeking condonation of delay was required to be filed in view of the deficiency note recorded by the Registry. However, only today, application seeking condonation of delay has been presented. 6. Ld. AR for the appellant-applicant submits that the application was being persued by the representative of the society, before Learned CIT(E), without availing of assistance of any practitioner, and as such, it is a case of lack of knowledge about procedure of law, and that the filing of the appeal got delayed by about one month. Ld. AR has urged that in the interest of justice delay in filing of the appeal be condoned. 7. Ld. DR for the department has not opposed submission put forth by the ld. AR for the appellant-applicant seeking condonation of delay, on the aforesaid ground. 8. Having regard to the facts and circumstances of the issues involved as well as the submission that the applicant society did not avail of services of any CA or practitioner, that there is no objection from the side of the department, delay of about 31 days in filing of the appeal is hereby condoned. 4 ITA No.1573 & 1574/JPR/2024 Dr. MPK Homeopathic Medical College Hospital & Research Centre Society Discussion on Merits 9. Arguments have also been advanced by both the sides on merits. Non registration of the applicant under RPT Act, 1959 10. This is one of the grounds of rejection of the application. In this regard, it may be mentioned here that Co-ordinate Bench ITAT, Jaipur has held in APJ Abdul Kalam Education and Welfare Trust vs. CIT(E) decided on 15.01.2025 that for the purposes of registration of such institutions, u/s 12AB of the Act, registration under RPT Act, 1959 is not one of the essential requirements. 11. The only submission put forth by Ld. AR for the appellant is that the representative of the applicant society could not furnish requisite information, details and documents before Learned CIT(E), for want of proper legal assistance, and that in the interest of justice one more opportunity may be granted to the applicant and the matter may be remanded back to Learned CIT(E) for decision afresh. 12. Ld. DR has pointed out that for want of compliance with directions issued by Learned CIT(E), requisite information/documents were not furnished by the applicant deposit ample opportunities. 5 ITA No.1573 & 1574/JPR/2024 Dr. MPK Homeopathic Medical College Hospital & Research Centre Society 13. As is available from the impugned order, Learned CIT(E) afforded opportunities to the applicant. In reply to the show cause notice dated 07.09.2024, the applicant failed to furnish following information:-  Income & Expenditure accounts for the F.Y. 2023-24 alongiwth details of expense, ledger a/c bills/vouchers alongiwth details of activites and its beneficiaries.  Bank transaction details above 50000/-.  Salary details of F.Y. 2023-24.  Details of payment made to 13(3) persons  Details of surplus fund in F.Y. 2021-22 & 2022-23 in view of Hon'ble S.C. decision in the case of Baba Banda Singh Bahadur Education Trust.  Complete Books of Account with supporting evidence in respect of running school like salary exp, Hostel etc  Class wise and year wise comparison chart  Apart from running school/college, any charitable activity i.e. free teaching relief to poor etc  Details of charitable activities along with corresponding evidence.  Year wise & Class wise bifurcation of fees received from the students. 14. In view of the opportunities granted, it can safely be said that Learned CIT(E) followed the principles of natural justice in this regard. However, taking into consideration that Learned CIT(E) proceeded to dispose of the application, feeling constraint of time as per law, and that significant issues are involved, we deem it a fit case to remit the matter to Learned CIT(E) for disposal of the application afresh. Result 15. In view of the above discussion, while disposing of the appeal for statistical purposes, the impugned order is set aside, and application is 6 ITA No.1573 & 1574/JPR/2024 Dr. MPK Homeopathic Medical College Hospital & Research Centre Society restored to the files of Learned CIT(E) for decision afresh, as regards the issues involved, except the issue of registration of the applicant under RPT Act, 1959, of course, after providing reasonable opportunity to the applicant of being heard. However, taking into consideration number of opportunities granted by Learned CIT(E) to the applicant and that the applicant did not comply with the abovesaid directions issued by Learned CIT(E), the applicant is burdened with costs of Rs. 1,000/-. Costs to be deposited by the applicant with “Prime Minister’s National Relief Fund” and receipt to be submitted before Learned CIT(E) before commencement of the proceedings on remand. Files be consigned to the record room after the needful is done by the office. Copy of order be also placed in the connected appeal file. Order pronounced in the open court on 01/04/2025. Sd/- Sd/- ¼xxu xks;y½ ¼ujsUnz dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 01/04/2025 *Santosh 7 ITA No.1573 & 1574/JPR/2024 Dr. MPK Homeopathic Medical College Hospital & Research Centre Society vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Dr. MPK Homeopathic Medical College Hospital & Research Centre Society, Jaipur. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;dj vk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File ITA No. 1573 & 1574/JPR/2024) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "