SHRI VISHWAKARMA KALYAN SAMITI,JAIPUR V. CIT EXEMPTION, JAIPUR, JAIPUR

ITA 67/JPR/2025

AI Insights

The case involves Shri Vishwakarma Kalyan Samiti, a charitable society, 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-registration under the RPT Act, 1959, and doubts regarding the genuineness of the society's activities. The tribunal found that registration under the RPT Act, 1959 is not a necessary requirement for registration under section 12AB, thus dismissing that ground. The tribunal also decided to restore the matter to the CIT (Exemption) for a fresh examination regarding the completeness of the application and the genuineness of the activities, after the applicant was given another opportunity to comply with the necessary requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298499 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Other Referred Cases: APJ Abdul Kalam Education and Welfare Trust vs. CIT(E)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM; THROUGH VC
• Assessee Lawyers: R.S. POONIA; C.A
• Keywords: Condonation of delay; Opportunity of being heard; 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. 67/JPR/2025 Shri Vishwakarma Kalyan Samiti C/o Satyanarayan Barwadia Ka Makaan Samarthpura Piprali Road, Sikar. cuke Vs. The CIT Exemption, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAAJS4919C vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri R.S. Poonia, C.A jktLo dh vksjls@Revenue by: Mrs. Alka Gautam, CIT-DR (through VC). lquokbZ dh rkjh[k@Date of Hearing : 21/04/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: : 21/04/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . On 18.09.2023, Learned CIT (Exemption), Jaipur rejected an application submitted by the appellant-applicant seeking registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”), on the following three grounds:-  Incomplete form 10AB.  Non registration with RPT Act, 1959.  Genuineness of activities. 2 ITA No. 67/JPR/2025 Shri Vishwakarma Kalyan Samiti vs. CIT(E) Feeling aggrieved by the said order of rejection of the application, applicant is before this Appellate Tribunal. 2. The appeal has been filed on 20.01.2025 whereas the impugned order is dated 18.09.2023. Subsequently the applicant submitted an application seeking condonation of delay of 417 days. 3. Firstly, Ld. AR for the applicant advanced arguments on the application seeking condonation of delay. Ld. AR has submitted that due to recent changes in the laws relating to trusts/institutions/societies, the representative of the applicant Samiti was not aware of the exact legal remedy i.e. whether to file fresh application under section 12 AB of the Act, before Learned CIT(E) or to file an appeal before this Appellate Tribunal. 4. Alongwith the application, Shri Banwari Lal Sharma, President of the applicant society has filed his affidavit seeking condonation of delay on the aforesaid ground put forth by Ld. AR. 5. We have considered the aforesaid reason seeking condonation of delay in filing the appeal. In the application and the affidavit, it has been averred that 2 to 3 consultants of different cities were contacted for proper legal advice about the proper remedy, as regards impugned order. 3 ITA No. 67/JPR/2025 Shri Vishwakarma Kalyan Samiti vs. CIT(E) We find that nowhere in the application or the affidavit, it has been specified as to when the representative or President of the applicant contacted any said consultant, or as to who were consultants, and from which cities. To satisfy this Appellate Tribunal about sufficient cause for late filing of the appeal, all these details were required to be furnished, but the same have not been furnished. However, taking into consideration that the applicant society claims itself to be charitable society and the issues involved, as regards its registration u/s 12AB of the Act, we deem it a fit case to condone the delay in filing of the appeal, but subject to costs. The applicant is burdened with costs of Rs. 2000/-while disposing of this application seeking condonation of delay. Costs to be deposited by the applicant with “Prime Minister’s National Relief Fund”. 6. Ld. AR for the appellant and Ld. DR for the department have put forth their submissions in the appeal on merits today itself. We proceed to take up each of the three grounds made basis for rejection of prayer for registration of the appellant under section 12 AB of the Act. 4 ITA No. 67/JPR/2025 Shri Vishwakarma Kalyan Samiti vs. CIT(E) Non registration under RPT Act, 1959 7. In this regard, it may be 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. Therefore, this ground does not survive any more for refusal of the registration of the appellant. Incomplete Form 10AB 8. In the impugned order, Learned CIT(E) has observed that the application submitted by the applicant was incomplete as a note as regards activities of the applicant was not furnished as per requirement of Rule 17A(2)(k) of the I.T. Rules. He went on to observe that some other details were also requisitioned from the assessee vide various notices, but the same were not provided. In the course of arguments, Ld. AR for the appellant has submitted that the matter may be restored to the files of Learned CIT(E) so that the appellant complies with all the requirements of law. 9. When Learned CIT(E) provided opportunities to the applicant to complete the form by furnishing requisite details, the applicant was required to comply with the directions. But, it did not comply with. However, taking 5 ITA No. 67/JPR/2025 Shri Vishwakarma Kalyan Samiti vs. CIT(E) into consideration that the appellant claims itself to be a charitable society, the matter deserves to be restored to the files of Learned CIT(E) for fresh consideration on this aspect, after providing opportunity of being heard to the appellant. Genuineness of Activities 10. As is available from para 4 of the impugned order, Learned CIT(E) specified therein non compliance on the part of the applicant as it failed to furnish the following details:-  List of donors.  Bills and vouchers of expenses.  Photograph of activities.  Details of social handle.  Digital footprint.  Details of bank account details of last three years.  Copy of vidhan niyamavali, thus cannot be checked its complete provisions. 11. When Learned CIT(E) called upon the appellant to furnish all the above details, the appellant was required to comply with the directions. As noticed above, the matter is going to be restored to the files of Learned 6 ITA No. 67/JPR/2025 Shri Vishwakarma Kalyan Samiti vs. CIT(E) CIT(E), so as to provide another opportunity to the applicant. Therefore, Learned CIT(E) may provide an opportunity of being heard to the appellant even on this point. Result 12. As a result of the above discussion, this appeal is disposed of for statistical purpose, and while setting aside the impugned order dated 18.09.2023, 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 21/04/2025. 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:- 21/04/2025 *Santosh 7 ITA No. 67/JPR/2025 Shri Vishwakarma Kalyan Samiti vs. CIT(E) vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Shri Vishwakarma Kalyan Samiti, Sikar. 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. 67/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "