SHRI RADHA DAMODAR MANDIR TRUST,JAIPUR V. CIT EXEMPTION, JAIPUR

ITA 1004/JPR/2025

AI Insights

The case involves the Shri Radha Damodar Mandir Trust appealing against the decision of the CIT (Exemption), Jaipur, which denied the trust's registration under section 12AB of the Income Tax Act, 1961. The CIT (Exemption) had rejected the registration on grounds of non-genuineness of activities and incompleteness of Form 10AB, and also cancelled the provisional registration previously granted under section 12A. The trust argued that it was not given a fair opportunity to present its case, as all communications were sent to an email managed by a former tax consultant, leading to their unawareness of the proceedings. The ITAT found merit in the trust's arguments and restored the matter to the CIT (Exemption) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714494 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH OJHA
• Assessee Lawyers: ANOOP BHATIA
• Keywords: Condonation of delay; Opportunity of being heard; Principle of natural justice
• Section: 12A

Judgement Text

"vk;djvihyh; vf/kdj.k] t;iqjU;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,’’A” JAIPUR JhjkBkSM+ deys'kt;UrHkkbZ] ys[kk lnL; ,oaJhujsUnzdqekj] U;kf;dlnL; ds le{k BEFORE: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;djvihyla-@ITA No. 1004/JPR/2025 fu/kZkj.ko\"kZ@AssessmentYear : 2024-25 Shri Radha Damodar Mandir Trust Hathi Babu Marg, Bani Park Jaipur – 302 006 cuke Vs. The CIT (Exemption) Jaipur LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR No.: AAETS 5279 H vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri Anoop Bhatia, CA jktLo dh vksjls@Revenue by: Shri Rajesh Ojha, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 04/08/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: : 04/08/2025 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM This appeal is filed by the assessee against order of the ld.CIT (Exemption), Jaipur dated 04-12-2024 passed under section 12AB of the Income Tax Act, 1961 [ for short Act ] raising therein following grounds of appeal; ‘’1. On the facts and circumstances of the case and in law, Id. CIT(Exemption) has grossly erred in rejecting the final registration application filed u/s 12AB of the Income Tax Act, 1961, Such denial of registration being invalid in law as well as facts hence deserves to be quashed. Printed from counselvise.com 2 ITA NO. 1004/JPR/2025 SHRI RADHA DAMODAR MANDIR TRUST VS CIT (EXEMPTION), JAIPUR 2. On the facts and circumstances of the case and in law, the Id. CIT (Exemption) has further erred in rejecting the registration application on the ground of Non-Genuineness of Activities. However, the activities of the trust are completely genuine and explainable. Therefore, the denial of registration on this basis is completely irrational, illogical and against the principle of natural justice, hence deserves to be rolled back 3. On the facts and circumstances of the case and in law, the Id. CIT(Exemption) has further erred in rejecting the registration application on the ground of incomplete form 10AB. However, the applicant trust is in possession of all requisite documents as demanded and is fully compliant with the procedural requirements. Therefore, the denial of registration on this basis is completely irrational, illogical and against the principle of natural justice, hence deserves to be annulled. 4. On the facts and circumstances of the case and in law, the Id. CIT (Exemption) has further erred in cancelling the provisional registration earlier granted under section 12A of the Income Tax Act, 1961. Such cancellation being arbitrary in nature as well as unlawful hence deserves to be deleted.’’ 2.1 During the course of hearing, the Bench noticed that there is delay of 126 days in filing the appeal for which the Shri Nawal Kishore Jhalani, Managing Trustee has filed an application dated 30-06-2025 for condonation of delay praying therein that the said delay occurred as Email- ID mentioned on the application belonged to its former tax consultant and thus its trustees did not have excess to that Email-ID and as a result, they remained unaware of the proceedings and remained non-compliant. The relevant narration as made by the Managing trustee in the condonation application is reproduced as under:- ‘’Subject: Application for condonation of delay in filing of appeal under section 253 of the Income Tax Act, 1961- In the matter of SHRI RADHA DAMODAR MANDIR TRUST against order passed u/s 12AB. Printed from counselvise.com 3 ITA NO. 1004/JPR/2025 SHRI RADHA DAMODAR MANDIR TRUST VS CIT (EXEMPTION), JAIPUR Respected Sir/Madam, In reference to the above, it is most respectfully submitted that an order rejecting registration application u/s 12AB was passed in the case of assessee by CIT. Exemption, Rajasthan, Jaipur on 04.12.2024. Accordingly, the appeal against the said order was required to be filed on or before 28.02.25. It came to the Trust's attention that all such notices and related communications were being sent to the email ID registered under the profile of the Trust's previous tax consultant. Unfortunately, the Trust did not have any access to that email ID, and was therefore unaware of the notices issued. Hence, the assessee Trust could not file timely replies or take necessary action within the stipulated time frame. However, subsequently while the trustees checked the online income tax portal of the Trust, they came to know about the passing of said order of CIT(E) thereby denying registration u/s 12AB to the assessee trust. Upon becoming aware of the compliance requirements after seeking due professional advice, the Trustees took immediate corrective steps and are now submitting this application for condonation of delay along with an affidavit in this regard. Therefore, for the sake of natural justice it is humbly requested to kindly condone the delay of 126 days in the present case and allowing hearing in the matter.’’ In support of application for condonation of delay, Shri Nawal Kishore Jhalani, Managing Trusteee has filed an affidavit deposing therein above facts. 2.2 On the other hand, the ld.DR did not controvert the facts stated in the affidavit seeking for condonation of delay. 2.3 We have heard both the parties and perused the materials available on record including the affidavit of Managing Trustee of the Trust. In this case, the Bench in nutshell notes that there is sufficient cause in having not timely filed the appeal as well as having non-attended the proceedings Printed from counselvise.com 4 ITA NO. 1004/JPR/2025 SHRI RADHA DAMODAR MANDIR TRUST VS CIT (EXEMPTION), JAIPUR before the ld. CIT(E) by the assessee, as the communication made by the Department to Email-ID [e-mail] of the former ld.AR was not brought to the notice of the assessee trust by the then ld.AR. Hence, the assessee trust was deprived off an opportunity of being heard and same also resulted in the delay in filling the present appeal. Hence, there is merit in the submission of the assessee trustee and thus delay is condoned as the assessee was having sufficient cause. 3.1 Apropos to the grounds appeal of the assessee, it is noticed that the ld. CIT(E) rejected the assesses claim of registration u/s 12AB of the Act by observing as under:- ‘’04. In view of above discussion assessee’s claim of registration section 12AB is liable to be rejected and thus being rejected on following grounds:-  Non Genuineness of activities  Incomplete Form 10AB 5.0 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 application and 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 09.12.2023 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 lapsed and cancelled.’’ 3.2 During the course of hearing, the ld. AR of the assessee in the above appeal mainly submitted that the assessee was not provided with an adequate opportunity of being heard before the ld. CIT(E) on account of the reasons as stated in the petition for condonation of delay. The ld.AR of the Printed from counselvise.com 5 ITA NO. 1004/JPR/2025 SHRI RADHA DAMODAR MANDIR TRUST VS CIT (EXEMPTION), JAIPUR assessee thus, submitted that the matter may be restored to the file of the ld. CIT(E) to pass order after providing sufficient opportunity of being heard so as to deal with the aspect of the issue raised by the ld. CIT(E) about the genuineness of activities and incomplete Form 10AB. He further submitted that the activities of the trust are completely genuine and explainable and the trust is in possession of all requisite documents as demanded by the ld. CIT(E). Further, the ld. AR of the assessee has filed a certificate dated 18- 08-1994 under RPT Act, 1959, issued by the Office of Asstt. Commissioner, Devsthan Vibhag, Jaipur Khand, Jaipur. Ultimately, the ld. AR of the assessee prayed that the assessee trust may be provided one more opportunity to contest the case before the ld CIT(E) and restore the matters to the file of ld. CIT(E) for afresh adjudication as the observations made by the ld. CIT(E) are remediable. 3.3 Per contra, the ld. DR relied on the orders of the ld. CIT(E) but he has no objection to restoration of matter to ld. CIT(E). 3.4 After hearing both parties and perusing the materials available on record, we noticed that the ld. CIT(E) has rejected the assessee’s claim of registration u/s 12AB of the Act on the ground of Non Genuineness of Activities and Incomplete Form 10AB. It is also noticed that the ld.CIT(E) has cancelled the provisional registration Printed from counselvise.com 6 ITA NO. 1004/JPR/2025 SHRI RADHA DAMODAR MANDIR TRUST VS CIT (EXEMPTION), JAIPUR of the assessee for the reason that the assessee trust had failed to give proper justification for regularization of provisional registration. The prayer of the ld.AR of the assessee is that the assessee may be provided one more chance to adduce the documents before the ld. CIT(E) to resolve the issue in question and the assessee trust has obtained Registration under Rajasthan Public Trust, 1959 on 18-08-1994 from the office of the Assistant Commissioner, DevsthanVibhag, Jaipur Khand, Jaipur The bench notes that with a view to resolving the issue, and considering the submissions filed before us we restore the matter back to the file of the ld. CIT(E) with the direction to decide the issues afresh after providing sufficient opportunity to the assessee trust and that the application of the assessee trust for registration u/s 12AB of the Act be decided in accordance with law. The assessee trust is also directed to produce the documents relating to genuineness of the activities of the trust before the ld CIT(E). 3.5 Before parting, we may make it clear that our decision to restore the matter back (supra) to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the Printed from counselvise.com 7 ITA NO. 1004/JPR/2025 SHRI RADHA DAMODAR MANDIR TRUST VS CIT (EXEMPTION), JAIPUR dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law. 4.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 04 /08/2025 Sd/- Sd/- ¼ujsUnzdqekj½ ¼jkBkSM+ deys'kt;UrHkkbZ½ (NARINDER KUMAR) (RATHOD KAMLESH JAYANTBHAI) U;kf;dlnL;@Judicial Member ys[kk lnL; @Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 04 /08/2025 *Mishra vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Shri Radha Damodar Mandir Trust, Jaipur 2. izR;FkhZ@ The Respondent- The ld. CIT(E), Jaipur 3. vk;djvk;qDr@ Theld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File (ITA No.1004/JP/2025) vkns'kkuqlkj@ By order, lgk;diathdkj@Asstt. Registrar Printed from counselvise.com "