LIONS HEALTH CARE & RESEARCH SOCIETY,DAUSA V. CIT EXEMPTION, JAIPUR

ITA 346/JPR/2025

AI Insights

The case involves Lions Health Care & Research Society, which appealed against the rejection of their applications for registration under section 12AB and approval under section 80G(5)(iii) of the Income Tax Act, 1961 by the CIT Exemption, Jaipur. The applications were initially rejected due to issues related to the registration under the Rajasthan Public Trust Act, 1959, and the non-genuineness of the society's activities. The Tribunal found merit in the appellant's request for another opportunity to present their case and directed a remand to the CIT(E) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360805 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM; . THROUGH VC
• Assessee Lawyers: SHRAWAN KUMAR GUPTA
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Period of limitation; Charitable institution; Non compliance
• Section: 12

Judgement Text

" vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “ B-Bench” JAIPUR Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ,o aJh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No.345 & 346/JPR/2025 Lions Health Care & Research Society Mandawar, Teh- Mahuwa, Dausa. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAAAL5761C vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Shrawan Kumar Gupta, Adv. jktLo dh vksjls@Revenue by: Mrs. Alka Gautam, CIT-DR. (through VC). lquokbZ dh rkjh[k@Date of Hearing : 19/05/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: : 19/05/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER. Appellant was applicant before Learned CIT(E). There, the applicant Society filed an application seeking registration 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). By filing separate application u/s 80G(5)(iii) of the Act, the applicant had also sought approval from Learned CIT(E). 2 ITA No.345 & 346/JPR/2025 Lions Health Care & Research Society, Dausa. Both applications were rejected by separate orders, each dated 27.12.2024. 2. That is how, the applicant is before this Appellate Tribunal. 3. It may be mentioned here that as per deficiency notes made by the Registry, each appeal was filed 6 days after the prescribed period of limitation. While presenting the appeals, no application seeking condonation of delay was filed. Today, an application has been presented seeking condonation of delay in respect of the appeals. 4. The application is supported by an affidavit of Shri Ram Nivas Goyal, one of the trustees of the applicant society. 5. Arguments heard. File perused. 6. As noticed above, the impugned orders are dated 27.12.2024. On behalf of the appellant, it has been submitted that appeals were prepared on 27.02.2025, but the same were signed on 06.03.2025, the reason being that Shri Shrawan Kumar Gupta, Advocate representing the applicant was away to his native village upto 5th March, due to demise of his mother. Accordingly, prayer is that because of this sufficient cause, delay in filing of the appeals be condoned. 3 ITA No.345 & 346/JPR/2025 Lions Health Care & Research Society, Dausa. 7. On behalf of the Department, there is no objection to the condonation of delay in filing of the appeals on the aforesaid ground. We have considered the cause furnished and feel satisfied that there was sufficient cause for non filing of the appeals within the prescribed period of limitation. Accordingly, the application is allowed and delay in filing the appeals is condoned. 8. Arguments have been advanced by both sides, today itself, in each appeal on merits as well. 9. The application u/s 12AB of the Act, came to be rejected on the following two grounds:-  Registration under Rajasthan Public Trust act, 1959.  Non Genuineness of activities. Registration under Rajasthan Public Trust act, 1959. 10. As regards the first ground for rejection of the application under section 12 AB of the Act, Learned Counsel for the appellant submits that registration certificate under RPT Act, 1959, has been got issued and that the same may be allowed to be produced before Learned CIT(E), the 4 ITA No.345 & 346/JPR/2025 Lions Health Care & Research Society, Dausa. reason being that earlier the same could not be obtained by the applicant society. Non Genuineness of Activities 11. As regards this second ground for rejection of the application under section 12 AB of the Act, Learned Counsel for the appellant submits that relating to the genuineness of itsactivities , the applicant could not furnish certain details which were required by Learned CIT(E). Again the submission is that by remanding the matter to Learned CIT(E), another opportunity be granted to the appellant-applicant to submit requisite details/documents/information its activities. 12. It is available from the impugned order passed on application u/s 12AB of the Act that vide show cause notice dated 06.12.2024, certain discrepancies were pointed out by Ld. CIT(E) to the applicant, but the application came to be rejected when Learned CIT(E) observed that due to non compliance/non submission of information by the applicant, its activities were not verifiable/determinable. 13. No doubt, it was for the applicant to comply with the directions issued by Learned CIT(E) for the purpose of effective adjudication of the application of all the issues involved. But, the applicant failed to comply with certain directions. 5 ITA No.345 & 346/JPR/2025 Lions Health Care & Research Society, Dausa. However, having regard to the facts, when the applicant claims itself to be a charitable institution and also the issues involved, we deem it a fit case to remand the matter to Learned CIT(E) for decision of the application afresh, after providing reasonable opportunity of being heard to the appellant. 14. For the above said reasons, appeal ITA No. 345/JPR/2025, is disposed of for statistical purposes and the matter is remanded to Learned CIT(E) for decision of the application under section 12 AB of the Act afresh, after providing reasonable opportunity of being heard to the appellant. ITA No. 346/JPR/2025, 15. The other application u/s 80G(5)(iii) of the Act came to be rejected for want of registration of the applicant u/s 12AB of the Act. As noticed above, application u/s 12AB of the Act has been restored to the files of Learned CIT(E) for decision afresh, while providing reasonable opportunity of being heard to the appellant. Consequently, the impugned order rejecting the application u/s 80G(5)(iii) of the Act is set aside, and while disposing of this appeal for statistical purpose, said application is also restored to the files of Learned CIT(E) for decision afresh, providing reasonable opportunity of being heard to the appellant. 6 ITA No.345 & 346/JPR/2025 Lions Health Care & Research Society, Dausa. A copy of this common order be placed on the record of the connected appeal file. Files be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 19/05/2025. Sd/- Sd/- ¼jkBkSM+ deys'k t;UrHkkbZ ½ ¼ujsUnz dqekj½ (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 19/05/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Lions Health Care & Research Society, Dausa. 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. 345 & 346/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "