SAIDATTAVIKAS SAIDHAM CHARITABLE TRUST,AJMER V. CIT EXEMPTION, JAIPUR, JAIPUR

ITA 368/JPR/2025

AI Insights

The case involves two appeals by the Saidatta Vikas Saidham Charitable Trust against the orders of the Commissioner of Income Tax (Exemption), Jaipur, which had rejected the Trust's applications for registration under sections 12AB and 80G of the Income Tax Act, 1961. The Trust argued that its provisional registrations were unjustly cancelled without proper hearing, violating principles of natural justice. The Tribunal noted the Trust's engagement in charitable activities and its compliance with financial auditing but found that the Trust had not responded to the notices from the CIT(E). Consequently, the Tribunal decided to give the Trust another opportunity to present its case, thus restoring the appeals for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314190 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJESH OJHA
• Keywords: Condonation of delay; Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 12A; 80G

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 vk;djvihyla-@ITA No. 368 & 369/JPR/2025 u/s 12AB and 80G of the Act fu/kZkj.ko\"kZ@AssessmentYear : 2024-25 Saidatta Vikas Saidham Charitable Trust Khata No. 283 New, 283 Old , 283 Khasra No.2279 & 2280, Pushkar, Ajmer 305 001 cuke Vs. The CIT-Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR No.: ABGTS 4072 D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : None jktLo dh vksjls@Revenue by: Shri Rajesh Ojha, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 28/04/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 08/05/2025 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM These are two appeals filed by the assessee against two different orders of the ld.CIT (Exemption), Jaipur both dated 29-11- 2024 passed under section 12AB and 80G of the Income Tax Act, 1961 [ for short Act ]respectively. The grounds of appeal raised by the assessee in both the appeals are as under:- 2 ITA NO. 368 & 369/JPR/2025 SAIDATTA VIKAS SAIDHAM CHARITABLE TRUST ITA No. 368/JPR/2025 U/s 12AB of I.T. Act, 1961 1)The trust was established with an objective to create spiritual awareness among public, to create sound spirituality among every person and creature, and to educate people, to conduct bhandara, to maintain & construct gaushala etc. yoga and yoga centre in modern requirement, it is also recognised by the UNO, these type objects are result oriented activities are activated, etc. The copy of trust deed is enclosed. 2) It is further requested that the trust is a charitable trust established with the objective of welfare of general public, it is engaged in the development of meditation centres to educate people of all caste and creed about spirituality. 3) It is humbly requested that the trust maintain regular books of accounts and get them duly audited, which can be verified from income tax portal it is further requested that the copy of financials and audit report is enclosed. 4) All the Income which is derived by the trust are through the donation are utilized for the welfare of general public, and other objectives of the trust. 5) The assessee has already submitted all the requisite details as and when required by the commissioner exemption. The assessee has always been co- operative with the department. 6) It is humbly requested that the Commissioner Exemption has wrongly cancelled the provisional registration granted to the assessee under section 12(1)(ac)(vi), it is further requested that the cancellation of provisional registration was not valid. The cancellation of provisional registration is not just and fair. No opportunity of being heard was granted to the assessee before cancellation of provisional registration, this is beyond the principle of natural justice. 3 ITA NO. 368 & 369/JPR/2025 SAIDATTA VIKAS SAIDHAM CHARITABLE TRUST 7) The rejection of provisional registration granted under section 12(1) (ac)(vi) to the assessee is clear violation of principle of natural justice, therefore it is humbly requested to quash the order passed by Commissioner Exemption and grant us the registration under section 12(1)(ac) (vi) as the objectives of the trust are for betterment of each and every creature irrespective of caste, creed, etc. 8) The honourable Commissioner Exemption has wrongly cancelled the provisional registration, without considering the fact that the assessee has already submitted all the requisite details as and when required by the honourable Commissioner, Exemption, but the Commissioner has wrongly cancelled the provisional registration.’’ ITA No. 369/JPR/2025 U/s 80G of I.T. Act, 1961 ‘’1) The trust was established with an objective to create spiritual awareness among public, to create sound spirituality among every person and creature, and to educate people, to conduct bhandara, to maintain & construct gaushala etc. yoga and yoga centre in modern requirement, it is also recognised by the UNO, these type objects are result oriented activities are activated, etc. The copy of trust deed is enclosed. 2) It is further requested that the trust is a charitable trust established with the objective of welfare of general public, it is engaged in the development of meditation centres to educate people of all caste and creed about spirituality. 3) It is humbly requested that the trust maintain regular books of accounts and get them duly audited, which can be verified from income tax portal it is further requested that the copy of last 2 years financials and audit report is enclosed. 4) All the Income which is derived by the trust are through the donation are utilized for the welfare of general public, and other objectives of the trust. 5) It is humbly requested that all the donation receipts are received through online mode only, which can be verified from Form 10 BD filled at income tax portal and there utilization is as per the charitable objectives of the trust and for the upliftment of the society as whole, which can be verified from the financials and audit report of the trust. 4 ITA NO. 368 & 369/JPR/2025 SAIDATTA VIKAS SAIDHAM CHARITABLE TRUST 6) The assessee has already submitted all the requisite details as and when required by the commissioner exemption. The assessee has always been co- operative with the department. 7) It is humbly requested that the Commissioner Exemption has wrongly cancelled the provisional registration granted to the assessee under section 80G(5)(iv), it is further requested that the cancellation of provisional registration was not valid. The cancellation of provisional registration is not just and fair. No opportunity of being heard was granted to the assessee before cancellation of provisional registration, this is beyond the principle of natural justice. 8) The rejection of provisional registration granted under section 80G(5)(iv) to the assessee is clear violation of principle of natural justice, therefore it is humbly requested to quash the order passed by Commissioner Exemption and grant us the registration under section80G(5)(iv) as the objectives of the trust are for betterment of each and every creature irrespective of caste, creed, etc. 9) The honourable Commissioner Exemption has wrongly cancelled the provisional registration, without considering the fact that the assessee has already submitted all the requisite details as and when required by the honourable commissioner exemption, but the commissioner has wrongly cancelled the provisional registration.’’ 2.1 During the course of hearing, none appeared on behalf of the assessee when the case was called out for hearing. However, the Bench feels to dispose of the appeals of the assessee ex-parte based on the materials available on record. 3.1 At the outset of hearing of the appeals, it is noticed that there is delay of 36 days in filing both the appeals for which the Chairman of the Trust by filing applications for condonation of delay in connection with the above appeals submitted that due to some inevitable reasons the managing 5 ITA NO. 368 & 369/JPR/2025 SAIDATTA VIKAS SAIDHAM CHARITABLE TRUST trustees and the A.R. of the trust were out of State due to medical reasons during the month of Jan and Feb. 2025 and the order of the ld.CIT(E) was served later upon the assessee. Thus this delay took place in filing both the appeals. 3.2 On the other hand, the ld. DR objected for such delay in filing the appeals but submitted that the Court may decide the issue as deemed fit and proper in the case. 3.3 The Bench heard the ld.DR and perused the applications of the Chairman of the Trust and found that there is some merit in the case. Thus the delay of 36 days in both the appeals are condoned. 4.1 Apropos to the ground so raised by the assessee in ITA No. 268/JPR/2025, the ld. CIT(E) rejected the assessee’s claim of registration u/s 12AB of the Act by observing as under:- ‘’03. In compliance to the notice(s), the assessee has not furnished any reply, therefore, the activities of the applicant could not prove. Accordinglh, the applicant application for registration u/s 12AB, applied u/s 12A(1)(ac)(iii) is hereby rejected. 04. 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, 1961 dated 17.11.2023 is also being cancelled. Further assessee has failed to give proper justification for regularization of provisional registration, thus with this order provisional registration is also cancelled.’’ 6 ITA NO. 368 & 369/JPR/2025 SAIDATTA VIKAS SAIDHAM CHARITABLE TRUST 4.2 Apropos to the ground so raised by the assessee in ITA No. 369/JP/2025, the ld. CIT(E) rejected the assessee’s claim of recognition u/s 80G of the Act by observing as under:- ‘’03. In compliance to the notice(s), the assessee has not furnished any reply, therefore, the activities of the applicant could not prove. Accordingly, the applicant application for approval u/s 80G, applied u/s 80G(5)(iii) is hereby rejected. 04. Further 2nd proviso to 80G(5) also state that if CIT is not satisfiedhas to pass order rejecting such application and also cancelling its earlier approval. Thus, it is clarified that applicant provisional approval under clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 dated 17.11.2023 is also being cancelled. Further assessee has failed to give proper justification for regularization of provisional approval, thus with this order provisional approval is also lapsed and cancelled.’’ 4.3 During the course of hearing, the Bench noted from the submissions of the Chairman of the asssessee, that the trust is engaged in the charitable and public welfare activities and the trust maintains regular books of account and get them audited also. But the assessee could not comply with the notices so issued by the ld. CIT(E) and therefore the registration u/s. 12AB was denied to the assessee-applicant. 4.5 Per contra, the ld. DR relied on the order of the ld. CIT(E). 4.6 The Bench has taken into consideration the submissions of the Chairman of the Trust and alsothe reliance as made by the ld.DR to the 7 ITA NO. 368 & 369/JPR/2025 SAIDATTA VIKAS SAIDHAM CHARITABLE TRUST order of the ld CIT(E). The Bench feels that that the assessee was given only two notices one dated 06.09.2024 and another dated 23.10.2024 and therefore, we feel that in the interest of justice one more chance should be given to the assessee trust to re-submit or argue the case before the ld. CIT(E) so that he will be in a position reappraise the case to the ld. CIT(A). The Bench adopts the lenient view and feels that the assessee should be given one more opportunity to advance the documents before the ld. CIT(E) as to registration of the trust u/s 12AB of the Act. Hence, in view of all the facts and circumstances of the case, the matter is restored to the file of the ld CIT(E) for afresh adjudication by providing adequate opportunity of being heard and the assessee is also required to submit the documents as demanded by the ld. CIT(E) with regard to registration of the Trust u/s 12AB of the Act. Thus, this appeal of the assessee is allowed for statistical purposes. 4.7 Since we have restored the appeal of the assessee with regard to the registration u/s 12AB of the Act to the file of the ld. CIT(E) for afresh adjudication, therefore, the outcome of appeal of the 8 ITA NO. 368 & 369/JPR/2025 SAIDATTA VIKAS SAIDHAM CHARITABLE TRUST assessee u/s 80G of the Act is consequential in nature and is also restored to the file of the ld. CIT(E). 8.0 In the result, the appeals of the assessee are allowed for statistical purposes Order pronounced in the open court on 08 /05/2025. 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:- 08 / 05/2025 *Mishra vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. vihykFkhZ@The Appellant- SaiData Vikas Saidham Charitable Trsut,Ajmer 2. izR;FkhZ@The Respondent- The CIT (E), Jaipur 3. vk;djvk;qDr@CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur. 5. xkMZQkbZy@Guard File {ITA No. 368&369/JPR/2025} vkns'kkuqlkj@By order lgk;diathdkj@Asst. Registrar "