SHARDA CHARITABLE TRUST,JAIPUR V. CIT(EXEMPTION), JAIPUR, JAIPUR

ITA 97/JPR/2025

AI Insights

The case involves Sharda Charitable Trust appealing against the rejection of their application for registration under section 12AB of the Income Tax Act, 1961 by the CIT (Exemption), Jaipur. The rejection was based on three grounds: incompleteness of Form 10AB, non-compliance with sections 10, 11 & 12 of the Act, and non-genuineness of activities. The tribunal noted that the trust's representative failed to comply with previous notices and directions from the CIT (Exemption), leading to the initial rejection. However, the tribunal decided to remand the case for a fresh decision, providing the trust another opportunity to comply with the requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46828 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM
• Assessee Lawyers: ASHOK KUMAR GUPTA
• Keywords: Opportunity of being heard; Charitable institution; Non compliance
• Section: 12

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. 97/JPR/2025 Sharda Charitable Trust Plot No. 3, Bajrang Colony Sodala, New Sanganer Road, Jaipur. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: ABATS7575F vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Ashok Kumar Gupta, Adv. 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 . On 26.11.2024, Learned CIT (Exemption), Jaipur rejected an application submitted by the appellant-applicant seeking registration u/s 12A(1)(ac) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”). Feeling aggrieved by the said order of rejection of the application, applicant is before this Appellate Tribunal. 2. Claim of the assessee seeking registration u/s 12AB of the Act has been rejected, on the following three grounds:- 2 ITA No. 97/JPR/2025 Sharda Charitable Trust vs. CIT(E)  Incomplete Form 10AB.  The applicant taking benefit of section 10,11 & 12.  Non Genuineness of Activities and non compliance. 3. Arguments heard. File perused. 4. Ld. AR for the appellant submits that the representative of the applicant trust could not participate in the proceedings or comply with the directions issued by Learned CIT(E), for want of acknowledge about notices issued by the said office of Learned CIT(E). At the same time, Ld. AR for the appellant submits that another opportunity may be provided to the applicant trust, by remanding the matter to Learned CIT(E), so that the appellant is able to comply with all the directions issued by Learned CIT(E) for effective adjudication of the application. 5. Ld. DR for the department has referred to the impugned order passed by Learned CIT(E) and pointed out that three notices were issued by the said office, but the representative of the applicant trust did not comply with the directions contained therein. 6. At page 3 of the impugned order, Learned CIT(E) has specified as to which documents are required to be submitted with suchlike application seeking registration u/s 12AB of the Act. 3 ITA No. 97/JPR/2025 Sharda Charitable Trust vs. CIT(E) In para 2.2 of the impugned order, Learned CIT(E) has specified deficiencies in the application. Since the representative of the applicant trust did not take steps for removal of the said deficiencies , Learned CIT(E) had no option, but to proceed further. Similarly for want of other relevant information/documents, despite notices issued to the applicant, Learned CIT(E) observed that it was a case of non genuineness of activities and the applicant trust having been found taking benefit of provisions of section 10,11 & 12 of the Act. In this regard, since the representative of the applicant trust did not submit any reply to the noticed issued by the office of Learned CIT(E), he had no option , but to proceed further and make the said two additional grounds as basis for rejection of the prayer of the appellant. 7. As mentioned above, Ld. AR for the appellant has requested for another opportunity to appear before Learned CIT(E), assuring that the representative of the appellant shall comply with all the directions issued, and any further to be issued by Learned CIT(E), and the issues involved in the case of said trust, which came to be incorporated in December, 2005, we deem it a fit case to remand the matter to Learned CIT(E) for decision afresh. 4 ITA No. 97/JPR/2025 Sharda Charitable Trust vs. CIT(E) As noticed above, the representative of the applicant did not comply with the notices issued by Ld. CIT(E) by furnishing reply or requisite information or details or documents, as mentioned in the impugned order, the applicant is burdened with cost of Rs. 1000/-. Costs to be deposited by the applicant with “Prime Minister’s National Relief Fund”. Result 8. As a result, this appeal is disposed of for statistical purpose, and while setting aside the impugned order dated 26.11.2024, application u/s 12AB of the Act is restored to the files of Learned CIT(E) with the direction for decision afresh, after affording reasonable opportunity of being heard to the applicant, in accordance with law. Receipt in proof of deposit of costs, to be submitted before Learned CIT(E) before commencement of the proceedings on remand. 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 5 ITA No. 97/JPR/2025 Sharda Charitable Trust vs. CIT(E) *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Sharda 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. 97/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "