NEEM KA THANA EDUCATION SOCIETY,NEEM KA THANA V. CIT EXEMPTION, JAIPUR, JAIPUR

ITA 1044/JPR/2025

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The Neem Ka Thana Education Society appealed against the decision of the Learned CIT(E), which had dismissed their application for registration under section 12A(1)(ac)(iv)(B) of the Income Tax Act, 1961. The dismissal was based on three grounds: the society's previous benefits under sections 10, 11, and 12 of the Act, non-registration under the Rajasthan Public Trust Act, 1959, and the non-genuineness of the society's activities. The tribunal found that the society had not adequately responded to the CIT(E)'s requests for information and documentation, leading to the initial dismissal. However, the tribunal granted another opportunity for the society to present its case, acknowledging the department's non-opposition to this request.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826532 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2025-2026
• Appeal Filed On: 22-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJESH OJHA
• Assessee Lawyers: TEJ PRAKASH AGARWAL
• Keywords: Additional evidence
• Section: 11; 12

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A-Bench” JAIPUR Jherh vUuiw.kkZ xqIrk] ys[kk lnL; ,oa Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SMT. ANNAPURNA GUPTA, AM & SHRI NARINDER KUMAR, JM vk;dj vihyla-@ITA No. 1044/JPR/2025 Neem Ka Thana Education Society Neem Ka Thana, Neem Ka Thana, Sikar-332713 cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR : AAHAN5088M vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Tej Prakash Agarwal, C.A. (through V.C.) jktLo dh vksjls@Revenue by: Shri Rajesh Ojha, CIT lquokbZ dh rkjh[k@Date of Hearing : 24/12/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 05/01/2026 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . The appellant herein filed an application u/s 12A(1) (ac) (iv) (B) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), in Form No. 10AB, before Learned CIT(E), seeking its registration. Said application came to be dismissed vide order dated 16.06.2025, on the following three grounds:-  The applicant taking benefit of section 10, 11 & 12.  Non-registration under Rajasthan Public Trust Act, 1959.  Non-genuineness of activities. Printed from counselvise.com 2 ITA No. 1044/JPR/2025 Neema Ka Thana Education Society, Neem Ka Thana Feeling aggrieved by said order of rejection of its application, the applicant society-appellant has come up in appeal. 2. Arguments heard. File perused. 3. After filing of above said application, Learned CIT(E) issued letter dated 03.02.2025 calling upon the applicant to furnish information if the society had ever taken benefit of the provisions of Section 11, 12 12A(1) (ac) (iv) (B) of the Act, in the previous year. Applicant was also required to furnish affidavit in this regard with copies of ITRs for the last three years. However, as is available from the impugned order, the applicant society did not comply with the said directions. Opportunities were provided to the applicant in this regard by issuing notices dated 19.02.2025 and 10.03.2025. Thereupon, the applicant furnished reply dated 28.03.2025 and claimed to have attached thereto copies of the ITRs for the last three years in support of its claim of having not taken any benefit of section 11, 12 or 12A(1) (ac) (iv) (B) of the Act. 4. On going through the copies of ITRs for the assessment year 2022- 23 and 2024-25 along with computation Annexed thereto, Learned CIT(E) observed that the applicant had filed ITRs copies; that the applicant had Printed from counselvise.com 3 ITA No. 1044/JPR/2025 Neema Ka Thana Education Society, Neem Ka Thana taken benefit of provisions of section 11 of the Act during said years, and further that the applicant had given wrong facts. That is why, Learned CIT(E) issued show cause notice dated 06.06.2025 to the applicant to clarify if the applicant society had taken benefit of the said provisions in the earlier years. Learned CIT(E) went on to observe at page 5 of the impugned order that the applicant had not furnished any reply to said show cause notice. On this ground, Learned CIT(E) rejected the application. 5. In the course of arguments before us, Ld. AR for the appellant society has admitted that no reply was furnished by the applicant society to the show cause notice dated 06.06.2025. However, Ld. AR requested for another opportunity to submit its reply to the said show cause notice before Learned CIT(E), so that the applicant society is able to prove that no benefit of provisions of section 11 was availed of by the applicant society during the assessment year 2022-23 and 2024-25. 6. Ld. DR for the department very candidly did not oppose the submission put forth by Ld. AR for the appellant for providing of another Printed from counselvise.com 4 ITA No. 1044/JPR/2025 Neema Ka Thana Education Society, Neem Ka Thana opportunity to the applicant society of being heard before Learned CIT(E), even by furnishing reply to the show cause dated 06.06.2025 which was not furnished there earlier. 7. Another ground for rejection of the application u/s 12A(1) (ac) (iv) (B) of the Act is that the applicant society had failed to establish if the applicant society was genuinely carrying out charitable activities. 8. From page 21 of the impugned order, it is found that Learned CIT(E) observed that the applicant had not furnished any reply to the notice dated 03.02.2025 issued for verification of genuineness of the activities of the applicant society, despite sufficient opportunities. In this regard, Learned CIT(E) highlighted 9 reasons for arriving at the conclusion that the activities of the applicant society were not verifiable. 9. In the course of arguments, Ld. AR for the appellant has candidly admitted to have not furnished any reply to the above said notice dated 03.02.2025 issued by Learned CIT(E). However, Ld. AR for the appellant once again requested that the matter may be restored to Learned CIT(E) for another opportunity to the applicant society to furnish its reply to the said notice and relevant documents/information/details desired by Learned CIT(E) which were earlier not furnished there. Ld. DR for the department Printed from counselvise.com 5 ITA No. 1044/JPR/2025 Neema Ka Thana Education Society, Neem Ka Thana did not object grant of another opportunity to the applicant society even in this regard before Learned CIT(E).. 10. Another ground for rejection of the applicant society u/s 12A(1) (ac) (iv) (B) of the Act is that the applicant society was not registered under RPT Act, 1959. In the course of arguments, Ld. AR for the appellant admitted that up to the passing of the impugned order, the applicant society was not registered under RPT Act, 1959. However, Ld. AR submitted that subsequently applicant society has been registered under RPT Act, 1959 as per certificate dated 28.07.2025, and that once the matter is restored to the files of Learned CIT(E), the applicant shall submit the requisite certificate there. It may be mentioned here that an application for additional evidence, accompanied by copy of certificate dated 28.07.2025, in proof of registration of the applicant society under RPT Act, 1959, has been filed. Said document is required to be taken into consideration by Learned CIT(E), for effective disposal of the application u/s 12A(1) (ac) (iv) (B) of the Act. Printed from counselvise.com 6 ITA No. 1044/JPR/2025 Neema Ka Thana Education Society, Neem Ka Thana Conclusion 11. In view of the above discussion, we deem it a fit case to restore the application u/s 12A(1) (ac) (iv) (B) of the Act, to the files of Learned CIT(E), for decision afresh, after providing another opportunity to the applicant society, of being heard. Result 12. Consequently, this is appeal is disposed for statistical purposes and the matter is remitted to the files of Learned CIT(E), for decision afresh, after providing another opportunity to the applicant society, of being heard. File be consigned to the record room after the needful is done by the office. Order to be pronounced under Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 by placing the details on the notice board. Sd/- Sd/- ¼vUuiw.kkZ xqIrk½ ¼ujsUnz dqekj½ (ANNAPURNA GUPTA ) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member fnukad@Dated:- 05/01/2026 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Neem Ka Thana Education Society, Neem Ka Thana. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. Printed from counselvise.com 7 ITA No. 1044/JPR/2025 Neema Ka Thana Education Society, Neem Ka Thana 3. vk;djvk;qDr@ Theld CIT 4. vk;djvk;qDr@CIT(A) 5. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZQkbZy@ Guard File ITA No. 1044/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar Printed from counselvise.com "