Tribunal Remands Case for Review on Trust Registration and Activity Genuineness, Ensures Fair Hearing Opportunity.

The Tribunal remanded the case back to the Ld. CIT (Exemption) for further review, directing the appellant to present relevant documents regarding registration under the Rajasthan Public Trust Act, 1959, and to address concerns about the genuineness and profitability of its activities. The Tribunal emphasized the importance of providing the appellant a fair opportunity to be heard, without making any judgment on the merits of the case. The appeal was allowed for statistical purposes, with the order pronounced in open court.

---

---

Issues involved:
The judgment involves issues related to the eligibility of registration under section 12AB of the Income Tax Act, 1961 for a charitable institution registered under the Rajasthan Societies Registration Act, 1958. The issues also include the genuineness of activities, timely filing of application in Form No. 10AB, profitability of activities, and the legality of the order passed by the Ld. CIT (Exemption).

Issue 1 - Registration Eligibility:
The appellant challenged the decision of the Ld. CIT (Exemption) regarding the eligibility for registration under section 12AB, arguing that being registered under the Rajasthan Societies Registration Act, 1958 should suffice. The Ld. CIT (Exemption) rejected the application citing non-registration under the Rajasthan Public Trust Act, 1959 as a reason for ineligibility.

Issue 2 - Genuineness of Activities:
The appellant contended that its activities, primarily focused on educational initiatives approved by the Education Department Rajasthan and CBSE, were genuine. However, the Ld. CIT (Exemption) questioned the genuineness of these activities, which led to a dispute.

Issue 3 - Timely Application Filing:
The Ld. CIT (Exemption) raised concerns about the timely filing of the application in Form No. 10AB, alleging that it was not submitted within the stipulated timeframe. The appellant argued that the application was indeed filed on time, disputing the Ld. CIT (Exemption)'s assertion.

Issue 4 - Profitability of Activities:
The Ld. CIT (Exemption) contended that the appellant's activities were profit-oriented, contrary to the charitable nature claimed by the appellant. The appellant maintained that its activities were not profit-driven, challenging the Ld. CIT (Exemption)'s assessment.

Issue 5 - Legality of the Order:
The appellant sought to challenge the legality of the order passed by the Ld. CIT (Exemption), claiming it was erroneous and not supported by the facts on record. The appellant reserved the right to modify the grounds of appeal before the finalization of the appeal process.

In the judgment, it was noted that the appellant did not attend the proceedings despite notices being sent, and no written submissions were provided to counter the Ld. CIT (Exemption)'s order. The Ld. CIT (Exemption) based the decision on the applicant's failure to prove registration under the Rajasthan Public Trust Act, 1959, and the perceived profitability of the activities. The Tribunal directed the appellant to present relevant documents to the Ld. CIT (Exemption) for further review, emphasizing the importance of providing the appellant with a fair opportunity to be heard.

The Tribunal clarified that its decision to remand the matter back to the Ld. CIT (Exemption) did not imply any judgment on the merits of the case, as the Ld. CIT (Exemption) was tasked with independently adjudicating the dispute in accordance with the law. Ultimately, the appeal of the applicant samiti was allowed for statistical purposes, with the order pronounced in the open court on the specified date.

---