MANAV VIKAS SHODH EVAM SEWA SANSTHAN,JAIPUR V. CIT EXEMPTION, JAIPUR, JAIPUR

ITA 348/JPR/2025

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Manav Vikas Shodh Evam Sewa Sansthan, a charitable trust, filed two applications with the CIT Exemption, Jaipur, seeking registration under section 12AB and approval under section 80G(5)(iii) of the Income Tax Act, 1961. Both applications were rejected on December 24, 2024, due to issues related to profitability, registration under the Rajasthan Public Trust Act, 1959, and non-genuineness of activities. The trust appealed against these decisions. The Tribunal found sufficient cause for the delay in filing the appeals due to the personal circumstances of the trust's advocate and condoned the delay. The Tribunal noted the trust's failure to comply with earlier directions but deemed it appropriate to remand the matter for a fresh decision, considering the charitable nature of the trust and the importance of the issues involved.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360806 (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

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. 348 & 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan 80-68, Nyay Path Mansarowar, Jaipur. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABTM6665Q 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, who was applicant before Learned CIT(E), filed two applications. One was filed seeking its registration 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). The other was filed for approval u/s 80G(5)(iii) of the Act. Both said applications stand rejected vide separate order dated 24.12.2024. 2. That is how, the applicant is before this Appellate Tribunal. 2 ITA No.348 & 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur 3. 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 Som Dutt, one of the trustees of the applicant society. 5. Arguments heard. File perused. 6. As noticed above, the impugned orders are dated 24.12.2024. 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. 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 issue of delay in filing of the appeals. We 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. 3 ITA No.348 & 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur 8. Arguments have been advanced 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 grounds:-  Grounds of profitability.  Registration under Rajasthan Public Trust act, 1959.  Non Genuineness of activities. Registration under Rajasthan Public Trust Act, 1959. 10. As regards the second mentioned ground of rejection, Learned Counsel for the appellant submits that registration certificate under RPT Act, 1959, has been issued and that the same may be allowed to be produced before Learned CIT(E), the reason being that earlier the same could not be obtained by the applicant society. Non Genuineness of Activities and profitability 11. As regards both these grounds of rejection, Learned Counsel for the appellant submits that 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 4 ITA No.348 & 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur the appellant-applicant to submit there requisite details/documents/information about its activities. 12. It is available from the impugned order based on application u/s 12AB of the Act that vide show cause notice dated 07.12.2024, certain discrepancies were pointed out to the applicant by Learned CIT(E), 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. Of course, it was for the applicant to comply with the directions issued by Learned CIT(E) so that he could effectively adjudicate all the issues involved. Even though the applicant failed to comply with all the directions, having regards to the facts that the applicant claims itself to be a charitable trust and 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, the appeal ITA No. 349/JPR/2025, is disposed of for statistical purposes and the matter is remanded to Learned CIT(E), for decision of the application afresh, after providing reasonable opportunity of being heard to the appellant. 5 ITA No.348 & 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur ITA No. 348/JPR/2025, 15. The second mentioned 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, after 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, after providing reasonable opportunity of being heard to the appellant. 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 on19/05/2025. 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 6 ITA No.348 & 349/JPR/2025 Manav Vikas Shodh Evam Sewa Sansthan, Jaipur *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Manav Vikas Shodh Evam Sewa Sansthan, 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. 348 & 349/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "