SHRI SITARAM SANTSANG BHAWAN TRUST,BHILWARA V. CIT EXEMPTION, JAIPUR, JAIPUR

ITA 1090/JPR/2025

AI Insights

The case involves Shri Sitaram Santsang Bhawan Trust, which filed an application seeking approval under section 80G(5)(iii) of the Income Tax Act, 1961, but was initially rejected by the CIT Exemption, Jaipur, on the grounds of non-commencement of activities. The Trust had also applied for registration under section 12A, which was granted on the same day. The Tribunal noted the inconsistency in the CIT's decision-making, as the issue of non-commencement of activities was not raised during the registration under section 12AB but was cited as a reason for rejecting the application under section 80G(5)(iii).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780000 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 31-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH OJHA
• Assessee Lawyers: SUNIL PORWAL; THROUGH V.C
• Keywords: Period of limitation
• 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. 1090/JPR/2025 Shri Sitaram Santsang Bhawan Trust Miya Chand Ji Ke Bawdi, Nr. Sitaram Ji Ki Bawari, Sewa Sadan Road, Bhilwara. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATS4166K 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 Rajesh Ojha, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 08/10/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: : 09 /10/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . Appellant herein filed an application on 30.12.2024, online in Form 10AB, seeking approval u/s 80G(5)(iii) of the Income Tax Act, 1961, (hereinafter referred to as the “Act”). Vide impugned order dated 24.06.2025, said application has been dismissed, while observing in para 3 that the applicant had failed to prove commencement of activities. Printed from counselvise.com 2 ITA No. 1090/JPR/2025 Shri Sitaram Santsang Bhawan Trust, Bhilwara. 2. Feeling aggrieved by the rejection of said application, appellant- applicant is before this Appellate Tribunal. 3. Arguments heard. File perused. 4. Ld. AR for the appellant has submitted that separate application submitted by the applicant seeking registration u/s 12A of the Act has already been allowed, vide order dated 24.06.2025. In this regard, Ld. AR has placed reliance on copy of the order for registration under section 12AB of the Act, available at page 15 to 18 of the paper book. 5. There is nothing in the order for registration u/s 12AB that the applicant had not commenced activities. In other words, no such issue was raised by Learned CIT(E), while allowing application u/s 12AB on 24.6.2025. Significant to note that the impugned order, under challenge before this Appellate Tribunal, was also passed on the same date i.e. 24.06.2025, but, Learned CIT(E) took into consideration the issue of non commencement of activities only in the application under section 80G(5) of the Act, and made it a ground for rejection of the said application. When attention of Ld. DR for the department has been drawn to these facts, Learned DR has not been able to put forth any justification for Printed from counselvise.com 3 ITA No. 1090/JPR/2025 Shri Sitaram Santsang Bhawan Trust, Bhilwara. rejection of the application under section 80G(5)(iii) on the ground of non commencement of activities, while, at the same time having allowed registration of the applicant trust on separate application u/s 12AB of the Act, without raising any such objection or ground. 6. As is available from the impugned order, learned CIT(E) also observed that application u/s 80G(5)(iii) of the Act, came to be filed beyond prescribed period of limitation. As observed in the impugned order, such like application is to be filed at least 6 months prior to the expiry of period of the provisional approval or within 6 months of commencement of the activities, whichever is earlier. Herein, the application U/s 80G(5)(iii) of the Act, came to be presented on 30.12.2024. The appellant-trust was found to have obtained provisional registration on 25.02.2022, whereas it is said to have commenced its activities since 01.02.1970, as per its reply dated 13.05.2025. In this way, Learned CIT(E) found that it was a case of late filing of the application i.e. after expiry of 6 months period from the commencement of activities. 7. As already noticed above, on the same day, Learned CIT(E) allowed registration of the applicant trust u/s 12AB of the Act. Once the prayer of the applicant for its registration under the said provision was allowed on the Printed from counselvise.com 4 ITA No. 1090/JPR/2025 Shri Sitaram Santsang Bhawan Trust, Bhilwara. same date, we find merit in the contention raised by the Ld. AR for the appellant that the application 80G(5)(iii) of the Act also deserved to be allowed. 8. In the given facts and circumstances, while setting aside the impugned order, the appeal filed by the applicant is allowed. Result 9. Consequently, Ld. CIT(E) is directed to grant approval to the applicant u/s 80G(5)(iii) of the Act, in accordance with law. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 09/10/2025. 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:- 09/10/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Shri Sitaram Santsang Bhawan Trust, Bhilwara.. 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. 1090/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar Printed from counselvise.com "