SETH SAHIBRAM GOYAL CHARITABLE TRUST,AJMER V. CIT EXEMPTION, JAIPUR

ITA 1371/JPR/2024

AI Insights

The Seth Sahibram Goyal Charitable Trust appealed against the order of the Learned Commissioner of Income Tax (Exemption), Jaipur, which had dismissed their application for registration under section 12A of the Income Tax Act, 1961. The dismissal was initially based on two grounds: the trust's non-registration under the Rajasthan Public Trust Act, 1959, and the non-genuineness of its activities. During the appeal, it was established that the trust had subsequently registered under the RPT Act, and it was determined that registration under the RPT Act is not a mandatory requirement for the purposes of section 12AB of the Act, referencing a precedent in APJ Abdul Kalam Education and Welfare Trust vs. CIT(E). However, the issue of the genuineness of the trust's activities remained unresolved due to insufficient time provided to comply with the show cause notice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472800 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• 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: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARVIND KUMAR; ARVIND KUMAR
• Assessee Lawyers: SUNIL PORWAL; THROUGH V.C; SUNIL PORWAL; THROUGH V.C
• Keywords: Opportunity of being heard; Charitable institution
• Section: 12A

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 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. 1371/JPR/2024 Seth Sahibram Goyal Charitable Trust 381, Naya Bazar, Ajmer. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATS4019F vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Sunil Porwal, C.A. (Through V.C.) jktLo dh vksjls@Revenue by: Shri Arvind Kumar, CIT-DR lquokbZ dh rkjh[k@Date of Hearing :27/02/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 06/03/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . By way of present appeal, appellant trust has challenged order dated 21.09.2024 passed by Learned Commissioner of Income Tax (Exemption), Jaipur, whereby its application filed u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) filed on 27.03.2024 seeking its registration under the Act has been dismissed on following two grounds:-  That the applicant trust was not registered under Rajasthan Public Trust Act, 1959. 2 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust  Non genuineness of activity. 2. Arguments heard. File perused. Discussion 3. Non registration under Rajasthan Public Trust Act, 1959:- In the course of argument, Ld. AR for the applicant trust has submitted that during pendency of the application u/s 12A of the Act , the applicant trust could not get itself registered under RPT Act, and that presently it has been got registered. 4. In this regard, it may 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. 5. Even otherwise, in the paper book presented on 17.02.2025, before the Registry of this department, applicant trust has submitted certificate dated 17.01.2025 issued under RPT Act, 1959, in proof of its registration thereunder . Therefore, this ground of rejection of the application submitted before Learned CIT(E), no more survives. 3 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust Non genuineness of activity:- 6. As regards this second ground made basis for rejection of the application, Learned CIT(E) observed from the documents furnished by the applicant trust and from the failure on the part of the applicant in furnishing of requisite information as detailed in para 4 of the impugned order, that it was obvious that its activities were not verifiable, and it could not be determined whether the applicant trust was genuinely carrying on charitable activity or as per its objects. 7. Ld. AR for the appellant submits that few details were admittedly furnished by the applicant trust to Learned CIT(E), but some information could not be provided. 8. As is available from the impugned order, show cause notice was issued on 09.09.2024 for 17.09.2024. The impugned order came to be passed on 21.09.2024. 9. We find that there was insufficient time made available to the applicant trust to comply with the directions contained in the show cause notice dated 09.09.2024. Therefore, we deem it a fit case where the appellant should be afforded, by Learned CIT(E), reasonable opportunity of being heard. 4 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust Result 10. In view of the above discussion, this appeal is disposed off for statistical purposes, and the matter is restored to the file of Learned CIT(E) for decision on the application afresh, except the issue of registration under RPT Act, 1959, which stands finalized herein. Learned CIT(E) to afford reasonable opportunity of being heard to the applicant-appellant and that too in accordance with law. 11. The applicant trust to comply with all the directions of Learned CIT(E) to be issued from time to time, to avoid any delay in disposal of the application. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 06/03/2025. 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:- 06/03/2025 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Seth Sahibram Goyal Charitable Trust, Ajmer. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust 5. xkMZQkbZy@ Guard File ITA No. 1371/JPR/2024) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A-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. 1371/JPR/2024 Seth Sahibram Goyal Charitable Trust 381, Naya Bazar, Ajmer. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATS4019F vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Sunil Porwal, C.A. (Through V.C.) jktLo dh vksjls@Revenue by: Shri Arvind Kumar, CIT-DR lquokbZ dh rkjh[k@Date of Hearing :27/02/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 06/03/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . By way of present appeal, appellant trust has challenged order dated 21.09.2024 passed by Learned Commissioner of Income Tax (Exemption), Jaipur, whereby its application filed u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) filed on 27.03.2024 seeking its registration under the Act has been dismissed on following two grounds:-  That the applicant trust was not registered under Rajasthan Public Trust Act, 1959. 2 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust  Non genuineness of activity. 2. Arguments heard. File perused. Discussion 3. Non registration under Rajasthan Public Trust Act, 1959:- In the course of argument, Ld. AR for the applicant trust has submitted that during pendency of the application u/s 12A of the Act , the applicant trust could not get itself registered under RPT Act, and that presently it has been got registered. 4. In this regard, it may 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. 5. Even otherwise, in the paper book presented on 17.02.2025, before the Registry of this department, applicant trust has submitted certificate dated 17.01.2025 issued under RPT Act, 1959, in proof of its registration thereunder . Therefore, this ground of rejection of the application submitted before Learned CIT(E), no more survives. 3 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust Non genuineness of activity:- 6. As regards this second ground made basis for rejection of the application, Learned CIT(E) observed from the documents furnished by the applicant trust and from the failure on the part of the applicant in furnishing of requisite information as detailed in para 4 of the impugned order, that it was obvious that its activities were not verifiable, and it could not be determined whether the applicant trust was genuinely carrying on charitable activity or as per its objects. 7. Ld. AR for the appellant submits that few details were admittedly furnished by the applicant trust to Learned CIT(E), but some information could not be provided. 8. As is available from the impugned order, show cause notice was issued on 09.09.2024 for 17.09.2024. The impugned order came to be passed on 21.09.2024. 9. We find that there was insufficient time made available to the applicant trust to comply with the directions contained in the show cause notice dated 09.09.2024. Therefore, we deem it a fit case where the appellant should be afforded, by Learned CIT(E), reasonable opportunity of being heard. 4 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust Result 10. In view of the above discussion, this appeal is disposed off for statistical purposes, and the matter is restored to the file of Learned CIT(E) for decision on the application afresh, except the issue of registration under RPT Act, 1959, which stands finalized herein. Learned CIT(E) to afford reasonable opportunity of being heard to the applicant-appellant and that too in accordance with law. 11. The applicant trust to comply with all the directions of Learned CIT(E) to be issued from time to time, to avoid any delay in disposal of the application. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 06/03/2025. 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:- 06/03/2025 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Seth Sahibram Goyal Charitable Trust, Ajmer. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5 ITA No. 1371/JPR/2024 Seth Sahimram Goyal Charitable Trust 5. xkMZQkbZy@ Guard File ITA No. 1371/JPR/2024) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "