WOMEN CHILDREN WELFARE AND RURAL DEVELOPMENT SOCIETY,AJMER V. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR, JAIPUR

ITA 219/JPR/2025

AI Insights

The case involves the Women Children Welfare and Rural Development Society, which appealed against the decision of the Commissioner of Income Tax (Exemption), Jaipur, rejecting their application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The initial rejection was based on two grounds: non-registration under the Rajasthan Public Trust Act, 1959, and non-genuineness of activities. The tribunal found that the society had subsequently registered under the Rajasthan Public Trust Act, 1959, but had failed to provide sufficient evidence to prove the genuineness of its activities despite multiple opportunities given by the CIT(E). The tribunal decided to restore the matter to the CIT(E) for a fresh decision, emphasizing the need for the society to comply with the documentation requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711369 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961, Rajasthan Public Trust Act, 1959
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJESH OJHA
• Assessee Lawyers: PRATEEK KEEDAWAT
• Keywords: Opportunity of being heard; Additional evidence; Competent authority; Non compliance
• Section: 12; 80G

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. 219/JPR/2025 Women Children Welfare and Rural Development Society Development Society Madanganj, Kishangarh, Ajmer. cuke Vs. Commissioner of Income Tax (Exemption), Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAAAW5658B vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Prateek Keedawat, Adv. jktLo dh vksjls@Revenue by: Shri Rajesh Ojha, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 23/07/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: : 23/07/2025 vkns'k@ORDER Per: NARINDER KUMAR, JUDICIAL MEMBER . Appellant was applicant before Learned CIT(E) in the application dated 19.12.2024 filed u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), seeking its registration thereunder. Vide impugned order, Learned CIT(E) rejected the prayer for registration on the following two grounds:-  Non Registration under Rajasthan Public Trust Act, 1959; and Printed from counselvise.com 2 ITA No. 219/JPR/2025 Women Children Welfare and Rural Development Society, Ajmer.  Non Genuineness of activities. That is how, the applicant is before this Appellate Tribunal. 2. Arguments heard. File perused. Contentions Non Registration under Rajasthan Public Trust Act, 1959. 3. As regards this ground of rejection of the application, Ld. AR for the appellant submitted that the appellant has got itself registered under RPT Act, 1959. In this regard, he has relied on photocopy of certificate dated 08.01.2025 issued by the competent authority. Ld. AR further submits that the application for registration under RPT Act, 1959 was filed by the applicant before the competent authority during pendency of the application u/s 12A(1)(ac)(iii) of the Act before Learned CIT(E), but Learned CIT(E) did not wait for production of said certificate and preferred to dispose of the application. The submission is that said copy of the certificate be taken on record by way of additional evidence, and matter may be restored to the files of Learned CIT(E) for adjudication of other issue. 4. Ld. DR for the department has no objection to taking on record of copy of certificate issued by the competent authority under RPT Act, 1959. Printed from counselvise.com 3 ITA No. 219/JPR/2025 Women Children Welfare and Rural Development Society, Ajmer. The document is relevant for adjudication of the issue. Accordingly, same is taken on record. The fact remains that the appellant- applicant has got itself registered under RPT Act, on 08.01.2025. Said issue therefore does not survive for adjudication. Non Genuineness of activities 5. As regards this ground for rejection of the application, record reveals that vide order dated 09.07.2024, Learned CIT(E) directed the applicant to submit various details for verification of genuineness of activities. As observed by the Learned CIT(E), at page 15 of the impugned order, applicant did not furnish any reply to said letter. Further opportunities were afforded to the applicant to submit said details, as per letters dated 13.09.2024 and 09.10.2024. It was thereupon that the applicant submitted reply dated 21.10.2024 and also furnished some of the details asked for. After going through the said documents, Learned CIT(E) found that following details were not provided by the applicant:- “ Following details are not provided by the applicant:- Registration certificate under Rajasthan Public Trust Act, 1959, Bills/vouchers of major expenses, details of bank transaction above Rs. 20,000/- and bank statement, bills and vouchers are not provided for the activities conducted in last three years, details of all 13(3) persons.” Printed from counselvise.com 4 ITA No. 219/JPR/2025 Women Children Welfare and Rural Development Society, Ajmer. 6. Accordingly, another opportunity was granted to the applicant by way of show cause notice dated 08.12.2024. Still, the applicant failed to furnish any reply/details. Since four opportunities were granted to the applicant, but all the requisite details were not yet furnished, Learned CIT(E) observed that the applicant had failed to prove the factum of genuineness of its activities. In this regard, at page 18, it was observed as under:-  Not furnished details of bills and vouchers of the activities carried out by the trust and fails to prove that activities are as per objects of the trust.  Not submit the bank transaction details of above Rs. 20,000/- alongwith bank statement.  Not furnish the details of payment made to 13(3) persons.  Not furnish the details of beneficiaries of activities.  Not furnish the copy of final account for F.Y. 2023-24 to till date.  Not furnish whether the trust has taken benefit of section 11, 12 or not.  Not furnish the details of CSR funds.  Non-compliance to the show cause proves that the applicant has no proof regarding genuineness of activities. The applicant not furnished any details like bill/vouchers of activities, ledger accounts, photos etc. which proves that what works/activities has been carried out by the trust. Hence from the above it is clear that the activities are not verifiable and it could not be determined whether the applicant is genuinely carrying out charitable activity and it's cannot be ascertained that activities are as per objects. Therefore, the applicant claim of registration u/s 12AB is also liable to be rejected on ground of not proving its genuineness of activity.” 7. Faced with the above observations regarding non compliance by the applicant by way of non production of relevant documents and details, Ld. AR for the appellant has submitted that the matter may be restored to the Printed from counselvise.com 5 ITA No. 219/JPR/2025 Women Children Welfare and Rural Development Society, Ajmer. files of Learned CIT(E), so as to enable the applicant to comply with all the directions issued by Learned CIT(E). 8. As noticed above, several opportunities were provided by Learned CIT(E) to the applicant to furnish requisite details/documents, but the applicant failed to comply with those directions, and that is how, Learned CIT(E) was of the view that applicant had failed to prove genuineness of its activities. 9. In the given situation, when the applicant has obtained certificate under RPT Act, 1959, but, failed to comply with certain specific directions issued by Learned CIT(E), we, in the interest of justice, deem it a fit case to restore the matter i.e. application u/s 12A(1)(ac)(iii) of the Act to the files of Learned CIT(E) with the direction to provide to the assessee another opportunity of being heard to the applicant. Result. 10. As a result, this appeal is disposed of for statistical purpose, and while setting aside the impugned order dated 19.12.2024, application u/s 12A(1)(ac)(iii) 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. Printed from counselvise.com 6 ITA No. 219/JPR/2025 Women Children Welfare and Rural Development Society, Ajmer. However, taking into consideration that despite several opportunities, the applicant failed to furnish entire information/details/documents sought by Learned CIT(E), we direct the appellant to deposit costs of Rs. 2500/- in “Prime Minister’s National Relief Fund”. Receipt in proof of deposit of costs, to be submitted before Learned CIT(E) before commencement of the proceedings on remand. At this stage, it is significant to note that learned AR for the appellant has submitted today that the applicant would file separate appeal so as to challenge another order passed by Learned CIT(A) separately against the applicant rejecting approval under section 80G of the Act. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 23/07/2025. 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:- 23/07/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Women Children Welfare and Rural Development Society, Ajmer. Printed from counselvise.com 7 ITA No. 219/JPR/2025 Women Children Welfare and Rural Development Society, Ajmer. 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. 219/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar Printed from counselvise.com "