SHIVANI JAIN MEMORIAL TRUST,JAIPUR V. CIT EXEMPTION, JAIPUR

ITA 157/JPR/2025

AI Insights

The case involves Shivani Jain Memorial Trust appealing against the decisions of the CIT (Exemption), Jaipur, which had rejected the trust's applications for permanent registration under section 12AB and for approval under section 80G of the Income Tax Act, 1961. The trust argued that the rejections were based on surmises and technical grounds, without proper appreciation of the facts and details provided. The Tribunal examined the submissions and evidence presented by the trust and found that the CIT (Exemption) had not properly considered these in their decisions. Consequently, the Tribunal directed the CIT (Exemption) to grant the requested registrations and approvals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312999 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM; LD. THRO. V.C
• Assessee Lawyers: TARUN MITTAL; HARSHIT AGARWAL; LD. ARS
• Keywords: Charitable institution
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH “B”, JAIPUR BEFORE SHRI GAGAN GOYAL, ACCOUNTANT MEMBER AND SHRI NARINDER KUMAR, JUDICIAL MEMBER ITA Nos.156&157/JPR/2025 Shivani Jain Memorial Trust, Shri Puram Colony Gurjar Ki Thadi, Jaipur 302013 PAN No. AAMTS 1639P ...... Appellant Vs. CIT (Exemption), Jaipur …...Respondent Appellant by : Mr. Tarun Mittal, CA & Mr. Harshit Agarwal, CA, Ld. ARs Respondent by : Mrs. Alka Gautam, CIT- Ld. DR (Thro. V.C.) Date of hearing : 07/04/2025 Date of pronouncement : 30/04/2025 O R D E R PER GAGAN GOYAL, A.M: These two appeals by the assessee are directed against the order of Ld. CIT(E), Jaipur dated 26/12/2024passed u/s.12AB(1)(b)(ii)(B) and 80G (5)of the Income Tax Act, 1961 (in short ‘the Act’).The assessee has raised the following grounds of appeal vide ITA No. 157/JPR/2025 as under: 1. On facts and in the circumstances of the matter Ld. CIT (Exemption) has grossly erred in rejecting the application for registration u/s. 12AB of the Income Tax Act, 1961, filed in form 10AB merely on surmises and technical grounds, without appreciating the details furnished and actual facts of the case. Appellant prays that 2 such rejection being absolutely unwarranted and unjustified deserves to be rolled back and the registration sought being most legal, deserves to be provided. 2. That on facts and in the circumstances Ld. CIT(Exemption) has grossly erred in rejecting the application made under form 10AB, by holding that genuineness of activities of the trust for charitable purposes could not be established. Appellant prays that such observation is incorrect considering the facts of the case and therefore the approval deserves to be granted. 3. On facts and in the circumstance of the matter Ld. CIT (Exemption) has grossly erred in cancelling the provisional registration granted to appellant u/s. 12A(1)(ac)(vi) of the Income Tax Act, 1961, arbitrarily. 4. That the Appellant reserves the right to add/alter/ amend/delete / modify any grounds of appeal either before or at the time of hearing of appeal. 2. The brief facts of the case are that the assessee trust is already carrying a provisional registration u/s. 12A (1) (ac)(vi) of the Act vide dated: 27.05.2021. In continuation to this, the assessee trusts applied for regularization of this provisional registration vide application dated: 29.06.2024. It is also on record that the application of the assessee was dismissed earlier also vide order of the Ld. CIT (E), Jaipur dated: 21.02.2023. The office of the Ld. CIT (E), Jaipur issued a notice dated: 06.09.2024 for submission of information latest by 20.09.2024. In response to the same the assessee filed its reply vide dated: 05.10.2024. After considering the same again a letter was issued vide dated: 14.11.2024 to submit the reply by 19.11.2024. The assessee submitted its reply by 19.11.2024 and further asked for an adjournment for remaining issues. The office of the Ld. CIT (E), Jaipur, decided the matter based on the information/documents/explanations on record without granting any further adjournment, treating the matter under deadline for limitation. 3 3. The application of the assessee was dismissed alongwith the earlier registration granted on provisional basis u/s. 12A (1) (ac) (vi) of the Act vide dated: 27.05.2021 on the issue of Non-Genuineness of Activities. The assessee being aggrieved with the same preferred the present appeal before us. We have gone though the order of the Ld. CIT (E), Jaipur, passed 12AB (1) (b) (ii) (B) of the Act and submissions of the assessee alongwith grounds taken before us. 4. It is observed that the assessee trust is duly registered under the Rajasthan Public Trust Act, 1959 with the Rajasthan Devasthan Vibhag, Jaipur vide registration certificate dated: 27.02.2012. The assessee trust was settled/ created on 17.10.2011. The Ld. CIT(E), Jaipur denied the registration on the ground that the assessee trust is failed to prove the genuineness of its activities on the ground mentioned in detail in his order vide page no. 4, 5 and 6 of the order. We have gone through the enquiries conducted vis-à-vis replies on the same furnished by the assessee vide page nos. 38 to 85 of the paper book and again page nos. 89 to 111 of the paper book. 5. It is observed that the enquiries made by the Ld. CIT(E), Jaipur have already been duly responded by the assessee vide its submissions mentioned (supra) and the observations of the Ld. CIT(E), Jaipur are made without taking any cognizance of the same and failed to establish the charge against the assessee. Here it is also apparent that the order was passed in undue haste, ignoring the submissions of the assessee. It is observed that the ground alongwith reasons assigned by the Ld. CIT (E), Jaipur are not tenable on the facts of the case and the matter of the 4 assessee deserves to be allowed for the purposes of registration. In view of this relevant grounds taken by the assessee on this issue are allowed and objection raised by the Ld. CIT (E), Jaipur is dismissed. In the result, the Ld. CIT (E), Jaipur is directed to allow the application of the assessee for the purposes of permanent registration. 6. In the result the appeal of the assessee is allowed. In ITA No. 156/JPR/2025, the assessee has raised the following grounds of appeal: 1. under the facts and circumstances of the case and in law learned CIT (Exemptions) has grossly erred in denying the approval to the assessee under Section 80G of the Income Tax Act 1961. 2. The Ld. CIT (Exemption) has erred on facts and in law in rejecting the application on the ground that approval u/s. 80G cannot be granted without registration u/s. 12AB, without appreciating the fact that assessee was granted the provisional registration under section 12AB, hence the said denial being invalid in law deserves to be quashed 3. On facts and in the circumstances of the matter Ld. CIT (Exemption) has grossly erred in cancelling the provisional registration granted to appellant u/s. 80G (5) of the Income Tax Act, 1961, arbitrarily. 7. The only objection raised by the Ld. CIT(E), Jaipur in this matter was that as the assessee is not registered u/s. 12AB of the Act (which is precondition for the purposes of section 80G of the Act), same is not eligible for the purposes of approval as contained in section 80G of the Act. Now this objection of the Ld. CIT(E), Jaipur is no more exists, as the matter of registration u/s. 12AB of the Act has already been decided in favour of the assessee vide ITA No. 156/JPR/2025 (supra). In these terms grounds raised by the assessee are allowed and the office of 5 the Ld. CIT(E), Jaipur is directed to grant the approval to the assessee u/s. 80G (5) of the Act. 8. In the result the appeal of the assessee is allowed. The order is pronounced in the open court on the 30th Day of April 2025 Sd/- Sd/- (NARINDER KUMAR) (GAGAN GOYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Jaipur, िदनांक/Dated: 30/04/2025 Copy of the Order forwarded to: 1. अपीलाथ /The Appellant , 2. \u000eितवादी/ The Respondent. 3. आयकर आयु\u0015 CIT 4. िवभागीय \u000eितिनिध, आय.अपी.अिध., Sr.DR., ITAT, 5. गाड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, Jaipur Details Date Initials Designation 1 Draft dictated on PC on 30.04.2025 Sr.PS/PS 2 Draft Placed before author 30.04.2025 Sr.PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS/PS 7. File sent to the Bench Clerk Sr.PS/PS 8 Date on which the file goes to the Head clerk 9 Date of Dispatch of order 6 "