GURU BHAKTI KALYAN SAMITI,JAIPUR V. CIT(E), JAIPUR, JAIPUR

ITA 63/JPR/2025

AI Insights

The case involves two appeals by Guru Bhakti Kalyan Samiti against the orders of the CIT (Exemption), Jaipur, which denied the registration under sections 12AB and 80G of the Income Tax Act, 1961. The primary contention was the procedural handling of the provisional and final registration processes by the CIT (E), Jaipur. The Tribunal found that the CIT (E) had prematurely cancelled the provisional registration and incorrectly applied the law regarding the substantive requirements for registration under sections 12AB and 80G. The Tribunal emphasized that the procedural requirements should not override the substantive provisions of the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126436 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND KUMAR; LD
• Assessee Lawyers: P.C. PARWAL; LD
• Keywords: Opportunity of being heard; Grounds of appeal; Statistical purposes; Restored; Exempt
• Section: 12A; 2; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH “A”, JAIPUR BEFORE SHRI GAGAN GOYAL, ACCOUNTANT MEMBER AND SHRI NARINDER KUMAR, JUDICIAL MEMBER ITA Nos. 62& 63/JPR/2025 Guru Bhakti Kalyan Samiti, H. No. 2 Ka 1, Sector-2, Jawahar Nagar, Jaipur 302 004 PAN No. AAFAG 2904F ...... Appellant Vs. CIT (Exemption), Jaipur …...Respondent Appellant by : Mr. P. C. Parwal, C.A., Ld. AR Respondent by : Mr. Arvind Kumar, CIT, Ld. DR Date of hearing : 01/04/2025 Date of pronouncement : 24/04/2025 O R D E R PER GAGAN GOYAL, A.M: These two appeals by assessee are directed against the order of CIT (E), Jaipur dated 18.12.2024 passed u/s. 12AB(1)(b)(ii)(B)and 80G (5)of the Income Tax Act, 1961 (in short ‘the Act’). In ITA No. 62/JPR/2025, the assessee has raised the following grounds of appeal: - 2 1. The Ld. CIT (E) has erred on facts and in law in refusing to grant registration u/s. 12AB of the Act to the assessee solely on the ground that once provisional registration was cancelled vide order dt. 05.03.2024, the application filed u/s. 12A (1) (ac)(iii) dt. 30.06.2024 is infructuous as non-maintainable. 2. The appellant craves to alter, amend and modify any ground of appeal. 3. Necessary cost be awarded to the assessee. 2. The assessee filed an application in Form No. 10AB seeking registration u/s. 12AB of the Act vide dated: 30.06.2024. During the proceedings, it was observed by the Ld. CIT (E), Jaipur that the registration of the assessee as provisional registration u/s. 12A (1) (ac) (iii) of the Act was also rejected vide order dated: 05.03.2024 on the following grounds: - A). Incomplete Form 10AB; B). Non-Registration under the Rajasthan Public Trust Act, 1959 and C). Genuineness of Activities. It is observed that there is no substantive requirement in law to have provisional registration and then only final registration can be granted. The provision of issuing provisional registration first and then regularizing the same with final registration is only a procedural requirement and can’t override the substantive procedure of law. No doubt, the Ld. CIT (E), Jaipur failed to understand the nuances of the law in this respect. Secondly, a strange hurry in this matter was shown by the Ld. CIT(E), Jaipur in cancelling the provisional registration on 05.03.2024, as the same was valid till 31.03.2024 and the assessee was entitled to file an application for regularization of the same on or before 31.03.2024. 3. It is further observed that the provision of law w.r.t. registration u/s. 12AB of the Act nowhere stops the Ld. CIT (E), Jaipur to issue provisional registration 3 again u/s. 12A (1) (ac)(iii) of the Act (if his version is assumed correct) and then proceed to verify the claim of the assessee w.r.t. final permanent registration u/s. 12AB(1)(b)(ii)(B) of the Act. It is astonishing that the Ld. CIT (E), Jaipur himself withdraws the provisional registration of the assessee suo-moto before 31.03.2024 (provisional registration would have been infructuous automatically after 31.03.2024) without assigning any reason and show cause and then uses the same for denying the registration on the application filed by the assessee u/s. 12A (1) (ac)(iii)/ 12AB(1)(b)(ii)(B) of the Act. 4. In view of the above, the matter is restored back to the file of the Ld. CIT (E), Jaipur for fresh adjudication keeping in view the provisions of law and law pronounced by this bench after giving the assessee a fresh opportunity of being heard and the assessee is directed to be vigilant and cooperative enough in concluding the hearings before the Ld. CIT (E), Jaipur. 5. In the result, the appeal of the assessee is allowed for statistical purposes. In ITA No. 63/JPR/2025, the assessee has raised the following grounds of appeal: 1. The Ld. CIT(E) has erred on facts and in law in rejecting the application filed by the assessee in Form No. 10AB seeking approval under clause (iii) of first proviso to section 80G (5) of IT Act, 1961 on the ground that approval u/s. 80G cannot be granted without registration u/s. 12AB. 2. The appellant craves to alter, amend and modify any ground of appeal. 3. Necessary cost be awarded to the assessee. 4 6. The outcome of this appeal fully dependent on the outcome of the appeal adjudicated (supra). The Ld. CIT (E), Jaipur is directed once the registration to the assessee is granted u/s. 12AB, there is no further requirement in the law and simultaneous registration for the purposes of section 80G (5) of the Act is to be granted. Matter is restored back to the file of the Ld. CIT(E), Jaipur for fresh adjudication keeping in view the provisions of law and law pronounced by this bench after giving the assessee a fresh opportunity of being heard and the assessee is directed to be vigilant and cooperative enough in concluding the hearings before the Ld. CIT(E), Jaipur. 7. In the result, the appeal of the assessee is allowed for statistical purposes. 8. In the result, both the appeals of the assessee are allowed for statistical purposes. The Order is pronounced in the open court on the 24th day of April 2025. Sd/- Sd/- (NARINDER KUMAR) (GAGAN GOYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Jaipur, िदनांक/Dated: 24/04/2025 Copy of the Order forwarded to: 1. अपीलाथ /The Appellant , 2. \u000eितवादी/ The Respondent. 3. आयकर आयु\u0015 CIT 4. िवभागीय \u000eितिनिध, आय.अपी.अिध., Sr.DR., ITAT, 5. गाड फाइल/Guard file. 5 BY ORDER, //True Copy// (Asstt. Registrar) ITAT, Jaipur Details Date Initials Designation 1 Draft dictated on PC on 24.04.2025 Sr.PS/PS 2 Draft Placed before author 24.04.2025 Sr.PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS/PS 7. File sent to the Bench Clerk Sr.PS/PS 8 Date on which the file goes to the Head clerk 9 Date of Dispatch of order "