GURUKUL SHIKSHAN SANSTHAN,JAIPUR V. CIT EXEMPTION, JAIPUR

MA 28/JPR/2024

AI Insights

The case involves Gurukul Shikshan Sansthan, which filed a Miscellaneous Application against an ex-parte order of the ITAT Jaipur Bench concerning the cancellation of its registration under section 12AB of the Income Tax Act, 1961. The application was initially dismissed due to the absence of the assessee's representative and failure to provide necessary documents to verify the genuineness of the trust's activities. The Tribunal's decision to recall the order was based on the principle of natural justice, allowing the assessee another chance to present its case and submit the required documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705379 (ITAT-JAIPUR)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Rajasthan Public Trust Act, 1959
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTAM SINGH CHOUDHARY
• Assessee Lawyers: S.S. CHOUDHARY; OBSERVING
• Keywords: Opportunity of being heard; Charitable institution
• Section: 12A

Judgement Text

"vk;djvihyh; vf/kdj.k] t;iqjU;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;dlnL; ,oaJhjkBkSM+ deys'kt;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM Misc. Application No. 28/JP/2024 (Arising out of vk;djvihyla-@ITA No.482/JP/2024) fu/kZkj.ko\"kZ@AssessmentYear :2022-23 to 2024-25 Gurukul ShikshanSansthan 5, Nindar Moad, Harmara Jaipur – 302 013 cuke Vs. The CIT (Exemption) Jaipur LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR No.: AACAG 8325 K vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby :Shri S.S. Choudhary, CA jktLo dh vksjls@Revenue by: Shri Gautam SinghChoudhary, JCIT - DR lquokbZ dh rkjh[k@Date of Hearing : 01/07/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 03 /07/2025 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM This is a Miscellaneous Application filed by the assessee u/s 254(2) of the Act against the order of the ITAT Jaipur Bench dated 03-07-2024 praying therein to recall its ex-parte order for the reason that the assessee was not aware of the fact that physical presence is mandatory for seeking adjournment on the date of hearing of the appeal. The relevant contents as 2 M.A. NO. 28/JP/2024 (ARISING OUT OF ITA NO. 482/JP/2024) GURUKUL SHIKSHAN SANSTHAN VS CIT (E), JAIPUR mentioned by the assessee in the Misc. Application are reproduced as under:- ‘’Subject: Miscellaneous Application with respect to Appeal ITA No. 482/JPR/2024 (Gurukul ShikshanSansthan) With reference to above mentioned subject, we filed appeal against the order of CIT(Exemption) cancelling the application for registration under section 12AB of the Act. The first hearing date was decided to be on 10.06.2024 but we seeked adjournment stating the reason that due to non-availability of RPT certificate for which the assessee has applied but the same is not issued yet. It is expected to take approximately three more weeks and hence due to non-availability of RPT Certificate (Certificate issued under Rajasthan Public Trust Act 1958) which was the reason for cancellation of provisional Registration under section 12AB(1)(b)() of IT Act 1961, we requested for adjournment of the hearing. The application for adjournment was personally submitted by us on 07.06.2024. On the date of hearing i.e. 10.06.2024, the adjournment application was cancelled with remark that \"At the outset of hearing, no one appeared on behalf of the assessee. We rejected the adjournment request and proceeded.\" At the time of submitting the application for seeking adjournment, we were not made aware of the fact the physical presence is mandatory on the date of hearing even though the adjournment application already submitted. Such case has not happened with us anytime earlier than this. Then the final order was passed on 03.07.2024. We are filing miscellaneous application against order issued on 03.07.2024 and request you to kindly provide us with an opportunity to rectify our mistake of physical absence on the date of hearing.’’ 2.1 After hearing both the parties and perusing the materials available on record, it is noticed from the record that the ld.AR of the assessee had filed an adjournment application dated 07-06-2024 for seeking adjournment in the case with following prayer. ‘’In reference to the above cited subject, I beg to say that one grounds of appeal was non-availability of RPT Certificate for which the assessee has applied but the 3 M.A. NO. 28/JP/2024 (ARISING OUT OF ITA NO. 482/JP/2024) GURUKUL SHIKSHAN SANSTHAN VS CIT (E), JAIPUR same is not issued. It is expected to take approximately three more weeks and hence due to non-availability of RPT Certificate (Certificate issued under Rajasthan Public Trust Act, 1959) which was reason for cancellation of provisional Registration u/s 12AB(I)(b)(ii) of I.T. Act, 1961, I request you to kindly adjourn the hearing. So, I request you to kindly adjourn the hearing for next month. It is also pertinent to mention that the ld. AR of the assessee Shri S.S. Choudhary filed an affidavit deposing therein that he did not receive notice as to the next date of hearing of the appeal. The relevant submission as deposed in the affidavit is reproduced as under:- ‘’1. That I am power attorney holder of M/s. Gurukul ShikshanSansthan, Jaipur (PANAACAG 8325K). 2. That Tribunal decided date of hearing for appeal No. 482/JPR/2024 on 10thJune, 2024 but Registration Certificate of RPT Act was not issued by concern authority, hence,wefild application for adjournment on 7th June,2024. 3. That due to illness, I am suffering from Vertigo, Doctor advised 15 days bed rest so I did not personally appear before the Bench on 10th June 2024 and due to this the next date of hearing was neither noticed by us nor Tribunal informed about the same.’’ It is further noted from the records that the Bench had adjourned the date of appeal for 2-07-2024 but on the date of hearing, none appeared on behalf of the assessee nor filed any documents as to the appeal filed. Hence the Bench dismissed the appeal of the assessee by observing as under:- ‘’7. It is also observed that assessee had not submitted the details called by the Id.CIT(E), therefore, Id.CIT(E) observed that genuineness of the activities of the assessee could not be verified. After the amendment in the registration procedures for Charitable Trust parliament in its wisdom has introduced provisional registration and permanent registration w.e.f 01.04.2021. The provisional registration is issued 4 M.A. NO. 28/JP/2024 (ARISING OUT OF ITA NO. 482/JP/2024) GURUKUL SHIKSHAN SANSTHAN VS CIT (E), JAIPUR almost automatically relying on the assessee's submissions. However, at the time of issuing permanent registration as per Section 12AB(1), it is mandatory for Id.CIT(E) to verify genuineness of the activities of the assessee. In this case, assessee has not submitted the relevant details. Therefore, the Id.CIT(E) could not verify genuineness of the activities of the assessee. Even before this tribunal, assessee has not filed single document to prove genuineness of the activities of the assessee trust. In these facts and circumstances of the case, we agree with the ld. CIT(E) that assessee is not eligible for registration u/s 12AB of the Act as assessee could not prove genuineness of the activities. 7.1 In the facts and circumstances of the case, the we uphold the order of the ld. CIT(E). Accordingly, grounds of appeal raised by the assessee are dismissed.. 8. In the result, appeal of the assessee is dismissed. 2.2 In view of the above facts and circumstances of the case, the Bench adopts the lenient view and allows the Misc. Application of the assessee by recalling its order dated 03-07-2024 based on the fact that the same was earlier heard without giving a chance of hearing to the assessee. Therefore, considering that facts we consider this MA and simultaneously decides the merits of the appeal of the assessee today i.e. 01-07-2025. 3.1 In the ITA No.482/JP/2024, the assessee has raised the following grounds of appeal. 1. That the ld. CIT(E) has rejected application for registration u/s 12AB(1)(b)(ii)(B) of the Income Tax,1961 on the ground of incomplete Form 10AB, Rajasthan Public Trust, 1959, and genuineness of activities. 2. That the ld. CIT(E) has cancelled the provisional registration under clause (vi) of clause (ac) of sub-section (1) of Section 12A. 5 M.A. NO. 28/JP/2024 (ARISING OUT OF ITA NO. 482/JP/2024) GURUKUL SHIKSHAN SANSTHAN VS CIT (E), JAIPUR 3. That the ld. CIT(E) has grossly erred in law as well as in facts in not appreciating the documents/information furnished during the course of proceedings.’’ . 3.2 Apropos grounds of appeal of the assessee, the Bench noted that the ld.CIT(E) has cancelled the registration of the assessee by observing as under:- 4.1…. However, the applicant has failed to comply with the letters, despite being given three opportunities details of which given in para-1, during these proceedings and three opportunities during earlier application, thus effectively 6 opportunities. All the above details were sought in order to determine the actual working of the institution. The applicant didn't furnish the sought details. The applicant has not furnished the details along with bill/ vouchers of expenses debited in income and expenditure account for the last three financial years. Further, the assessee was also not submitting the details of bank account and financial statement for last three financial years. Details of note on activity carried out by the applicant. The above details were sought from the applicant to determine the actual purpose/ nature of expenditures made and to determine whether the impugned charitable activity had actually been done by the trust or not. Such type of verification is necessary to keep a check and balance on the actual working of the trust. Since, the applicant didn't furnish sought details, in the absence of such documents/details, the justification of impugned activity could not be derived and it is not known whether the applicant is genuinely carrying out charitable activity as per its objects. As 6 opportunities already provided, which are more than sufficient if assessee has anything in its support. Thusit is clear that is not doing activities genuinely. Hence, the applicant has failed to justify the genuineness of activities and thus falls out of the scope of registration u/s 12AB of the Act. 05. In view of above discussion assessee's claim of registration section 12AB is liable to be rejected and thus being rejected on following grounds: -  Incomplete Form 10AB & non submission of deed.  Rajasthan Public Trust Act, 1959.  Genuineness of Activities. 06. Further 12AB (1)(b)(ii)(B) of the Income Tax Act, 1961 also state that if CIT is not satisfiedhas to pass order rejecting such applicationand also cancelling its earlier registration. Thus, it is clarified that applicant's provisional registration under clause (vi) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act. 6 M.A. NO. 28/JP/2024 (ARISING OUT OF ITA NO. 482/JP/2024) GURUKUL SHIKSHAN SANSTHAN VS CIT (E), JAIPUR 1961 dated 04.04.2022 is also being cancelled. Further assessee has failed to give proper justification for regularisation of provisional registration, thus with this order provisional registration is also lapsed and cancelled.’’ 3.3 During the course of hearing, the ld.AR of the assessee submitted that the ld.CIT(E) has passed an ex-parte order and the assessee may be provided with one more opportunity to advance his submissions before the ld. CIT(E). He further submitted that he has received the Registration Certificate from the office of Assistant Commissioner (Pratham), DevsthanVibhag, Jaipur Khand, Jaipur under Rajasthan Public Trust Act, 1959 on 22-10-2024 and the copy of the same is produced before the Bench. 3.4 On the other hand, the ld. DR supported the order of the ld. CIT(E). 3.5 We have heard both the parties and perused the materials available on record. In this case, it is noticed that the ld.CIT(E) has passed an ex- parte order. However, the ld.CIT(E) had given multiple opportunities but the assessee Sansthan had not produced desired details / documents before the ld. CIT(E). Therefore, the case was decided on the basis of material filed by the assessee alongwith application for registration u/s 12AB in Form No.10AB. Summarily, the ld. CIT(E) rejected the claim of registration u/s 12AB of the Act on the following grounds:- 7 M.A. NO. 28/JP/2024 (ARISING OUT OF ITA NO. 482/JP/2024) GURUKUL SHIKSHAN SANSTHAN VS CIT (E), JAIPUR  Incomplete Form 10 AB  Rajasthan Public Trust, 1959  Genuineness of Activities and non-compliance The Bench noticed that it is an admitted fact that the assessee is ex- parte before the ld. CIT(E) as the assessee sansthan did not furnish the details as sought by the Department and thus the according to the ld.CIT(E), the assessee had failed to justify the genuineness of the activities of the sansthan. Now the ld. AR of the assessee submitted that one more chance may be given to adduce all the required details/information before the ld. CIT(E) and even the registration under RPT Act is also received and placed on record. Thus, the Bench considered the request /submission of the ld.AR of the assessee and is of the view that lis between the parties has to be decided on merits so that nobody’s rights could be scuttled down without providing opportunity of being heard to the assessee. Hence, the matter is restored to the file of the ld. CIT(E) to decide it afresh by providing one more opportunity of hearing, however, the assessee will not seek any adjournment on frivolous ground and remain cooperative during the course of proceedings before the ld. CIT(E). Thus the appeal of the assessee is allowed for statistical purposes. 8 M.A. NO. 28/JP/2024 (ARISING OUT OF ITA NO. 482/JP/2024) GURUKUL SHIKSHAN SANSTHAN VS CIT (E), JAIPUR 3.6 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 ld. CIT(E) independently in accordance with law. 4.0 In the result, the Misc application of the assessee is allowed and the appeal of the assesee is allowed for statistical purposes Pronounced in the Open Court on 03/ 07/2025. Sd/- Sd/- ¼Mk0 ,l- lhrky{eh ½ ¼jkBksMdeys'kt;UrHkkbZ ½ (Dr. S. Seethalakshmi) (Rathod Kamlesh Jayantbhai) U;kf;dlnL;@Judicial Member ys[kklnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 03 / 07/2025 *Mishra vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Gurukul Shikshan Sansthan, Jaipur 2. izR;FkhZ@ The Respondent- The ld. CIT(E), Jaipur 3. vk;djvk;qDr@ Theld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File (MA No. 28 Arising out of ITA No. 482/JP/2024) vkns'kkuqlkj@ By order, lgk;diathdkj@Asst. Registrar "