MPS FOUNDATION CHARITABLE TRUST,JAIPUR V. CIT EXEMPTION, JAIPUR

ITA 217/JPR/2025

AI Insights

The case involves MPS Foundation Charitable Trust appealing against the decision of the CIT Exemption, Jaipur, which had rejected their application for approval under section 80G of the Income Tax Act, 1961. The rejection was based solely on the trust's non-registration under the Rajasthan Public Trust Act, 1959. The Tribunal examined whether such registration is a requisite for section 80G approval and found, citing a similar case, that it is not. The trust had been registered under section 12AB of the Income Tax Act, which was affirmed during the proceedings. The Tribunal's decision emphasized the independence of section 80G approval from the requirements of the RPT Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47151 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Other Referred Cases: APJ Abdul Kalam Education and Welfare Trust vs. CIT(E)
• Laws Referred To: Income Tax Act, 1961, Rajasthan Public Trust Act, 1959
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM
• Assessee Lawyers: VISHNU KHANDELWAL
• Keywords: Charitable institution
• Section: 80G

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 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. 217/JPR/2025 MPS Foundation Charitable Trust 1-E-45, Gandhi Path, Subhash Colony, Shastri Nagar, Jaipur. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAFTM4141F vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Vishnu Khandelwal, C.A. jktLo dh vksjls@Revenue by: Mrs. Alka Gautam, CIT-DR. lquokbZ dh rkjh[k@Date of Hearing : 09/04/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: : 09/04/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . Appellant submitted an application u/s 80G of the Income Tax Act, 1961, (hereinafter referred to as the “Act”) before Learned CIT(Exemption), Jaipur seeking has approval. Vide impugned order dated 21.12.2024, Learned CIT(E) rejected the said application on the sole ground that the applicant trust is not registered under Rajasthan Public Trust Act, 1959. 2 ITA No.217/JPR/2025 MPS Foundation Charitable Trust vs. CIT(E) At the same time, Learned CIT(E) cancelled the provisional approval granted to the applicant trust under clause (iv) of first proviso to sub-section (5) of section 80G of the Act. That is how, the appellant trust is before this Appellate Tribunal. 2. Arguments heard. File perused. 3. As noticed above, Learned CIT(E) has rejected the approval sought by the applicant only on the ground that it was not registered under RPT Act, 1959. 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. In view of said decision, said ground does not survive for rejection of approval under section 80G of the Act. 4. In the course of arguments, we have enquired from ld. AR for the appellant as to whether the applicant trust stands registered u/s 12AB of the Act. The answer to the query is in affirmative. Nothing to the contrary has been submitted or referred to on behalf of the department. 3 ITA No.217/JPR/2025 MPS Foundation Charitable Trust vs. CIT(E) 5. In view of the above discussion, we find that Learned CIT(E) was not justified in not according approval to the applicant trust. Rather, the application deserved to be allowed, particularly when the applicant trust is stated to have already been allowed registration u/s 12AB of the Act. Result 6. In view of the above findings, this appeal is allowed. Learned CIT(E) to do so needful to give effective to this decision in accordance with law. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 09/04/2025. 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:- 09/04/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- MPS Foundation Charitable Trust, 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. 217/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "