TaxTMI 
TaxTMI 
2025 (4) TMI 1934
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.... be quashed. '' ITA No. 628/JPR/2024 U/s 80G of I.T. Act, 1961 "1. CIT(E) has wrongly rejected the application for registration of assessee society u/s 80G stating that the approval u/s 80G cannot be granted without registration u/s 12AB and commencement of activities and also wrongly cancelled provisional registration. Hence CIT(E) order should be made null and void and CIT(E) may be directed to grant for 80G registration and rejection/cancellation order of 80G must be quashed. '' 2.1 Apropos to the ground so raised by the assessee in ITA No. 627/JPR/2024, the ld. CIT(E) rejected the assessee's claim of registration u/s 12AB of the Act by observing as under:- "2.5. Assessee vide letter dated 19.12.2023 was required to submit documents/explanation, the relevant portion of which is reproduced as under- "Whether the institution is registered under Rajasthan Public Trust Act. 1959, if not, please give explanation that why the same should not be considered as violation of section 12AB(1)(b)(i)(B) of the income Tax Act read with sec 17 of the Rajsathan Public Trust Act, 1959 and decision of Hon'ble Apex Court in the case of New Noble Education Societ....
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....nature as can be seen from the financials attached.'' The above details were sought from the applicant to determine the authenticity of expenditures made and to determine the actual working of the trust. On perusal of financial statement for the FY 2020-21 & 2022-23, it was notice that the assessee has carried out only one activity i.e. seminar/ legal awareness. Further, it was also notice that the assessee is mainly doing seminar and all the expenditure made on account of seminar/ legal awareness expense only. However, the applicant has not submitted any further details as requisite above notice as payments made for what purposes such amounts have been made, who has attended the conference. The applicant neither submit venue of seminar nor submit any list of persons who have attended the seminar/legal awareness. In the absence of such details, it can be concluded that the applicant is not doing any charitable activity and just using the funds of the trust for its own personal uses. Thus, it can be concluded that the activities of the applicant are non-genuine and the applicant is not eligible for registration u/s 12A 04. In view of above discussion applicant's applica....
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....process of applying the registration under RPT Act before the competent authority and it is likely to get the same. This being the sole reason, the assessee prayed for one more chance. It is also worthwhile to mention the written submission of the assessee relating to both the appeals (supra) are as under:- STATEMENT OF FACTS relating to Section 12AA of the Act: The assessee trust is a charitable trust working for public welfare activities without any distinction of caste, colour, creed, section or sex in India. And to promote, practice, advise and help in upliftment of economic and financial health level of the Banking sector and financial institutions with respect to Indian Economy and to educate Banks and Financial institutions in making procedure for taking peaceful possession and sale of the secured asset etc. After change of method of trust registration in the online regime, the assessee trust had filed form 10A vide PB No. 23-26 for provisional registration and the Order of registration was granted to the assessee in form 10AC vide PB No.20-22 on 06.10.2021 vide unique registration number AAITA7176ME20212 under sub-clause (vi) of clause (ac) of sub....
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....Hon'ble ITAT in case of APJ Abdul Kalam Education and Welfare Trust Vs CIT(E), Jaipur vide I.T.A. Nos. 567/JPR/2024 on dated 15.01.2025. The objects of the Trusts are of charitable purposes, general public utility as well as relief to poor needy people specifying as under: a) To promote, practice, advise and help in upliftment of economic and financial health level of the Banking sector and financial institutions with respect to Indian Economy. b) To determining scope of the SARFAESI Act 2002 as also its underlying policies and indicates the main purpose of the enactment of the SARFAESI Act 2002. To organize the social welfare programs and public utility programs for helping group of persons to come out of debt, to advise banking sectors to make policies and procedure for effective recovery of their loans with parallel welfare of general public. c) The Association (AISAESIA) has been constituted to promote, advise to make necessary policies and procedure for effective recovery of banking/financial institution through Securitization of financial assets, Reconstruction of Financial assets & Enforcement of security interest. d) To educate B....
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....Abdul Kalam Education and Welfare Trust Vs CIT(E), Jaipur vide I.T.A. Nos. 567/JPR/2024 order Pronounced on 15/01/2025: It was decided in similar case by the ITAT "B" BENCH, JAIPUR in case of Trehan Seva Bharti Charitable Trust Vs CIT(E), Jaipur vide I.T.A. Nos. 1027 & 1028/JPR/2024 order Pronounced on 15/01/2025: It was decided in similar case by the ITAT "A" BENCH, JAIPUR in case of Ummat Human Help Sanstha Ajmer Vs CIT(E), Jaipur vide I.T.A. Nos. 854 & 857/JPR/2024 order Pronounced on 24/01/2025: "There is no law which is required to be complied with for achieving the objects of the assessee trust. Section 17 of the RPT Act, 1959 requires that trustees of the trust have to apply for registration of a public trust, however, there is no section in the RPT Act, 1959 which prohibits a trust to carry out its objects if it is not registered under the RPT Act, 1959. In our considered opinion, both the statutes have their own provisions and implications and none of them have overriding effect. Even if, the assessee trust is not registered with the RPT Act, 1959 and the concerned officials under the RPT Act, 1959 deems it necessary to get the entity registered ....
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....at "it can be concluded that the activities of the applicant are non-genuine and the applicant is not eligible for registration u/s 12A." We want to state that the assessee trust submitted reply with complete documents/explanations on 1402-2024 vide PB No.107-120. Further assessee was issued a show cause notice vide notice no. ITBA/EXM/F/EXM43/2023-24/1061740170(1) requesting it to furnish certain documents/ explanations by 05/03/2024. The assessee trust submitted reply with complete documents/explanations on 05-032024 vide PB No.121-123. We are also enclosing photographs as a proof of genuineness of activities for conducting seminar on legal awareness vide PB No.126-129. We are also enclosing Ledger of Expenses Showing Charitable Expenses of conducting legal awareness seminar vide PB No.124-125. The Ld. CIT(E) did not object on the charitable objects of the trust. The objects of the trust are charitable in nature mentioned at point no.1 and also as per deed vide PB No.6 and 8, so 12A must be granted on the basis of charitable objects of the trust. Hence Ld. CIT is wrongly stated that applicant has failed to justify the genuineness of activities whereas assessee trust is d....
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.... the organization for longer time. [Para 11] For the above reasons, the Tribunal is right in holding that while examining the application under section 12AA(1)(b), read with section 12A, the concerned Commissioner/Director is not required to examine question whether the trust has actually commenced and has, in fact carried on charitable activities." Our case is on the same analogy/ identical to the above case, trust has been carrying out genuine charitable activities as per its objects, so registration u/s 12A must be granted. 7. It was decided in similar case by the ITAT "B" BENCH, JAIPUR in case of Paradise Sarv Kalyan Sansthan, 106/31, Agarwal Farm, Mansarover, Jaipur Vs CIT(E), Jaipur vide I.T.A. Nos. 401 & 402/JPR/2024 order Pronounced on 10/07/2024 vide PB No. 152-157. "Conclusion 12. For the foregoing discussion, we find that both the impugned orders i.e. one challenged by way of ITA No. 401/JPR/2024 and the other by way of ITA No. 402/JPR/2024 deserve to be set aside, and matter(s) need remanded to Learned CIT(E) for decision afresh, after providing reasonable opportunity to the applicant-appellant, of being heard. Resul....
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....l was filed within stipulated time period i.e. on 16.11.2017. In the interregnum, the assessee trust again applied for registration u/s 12AA of the Act, which was granted by ld. CIT(E) on 27.10.2018, with effect from AY 2019-20. Before the ld. NFAC, it was submitted that since the assessee trust, before the order being passed by Ld. CIT(A), in the first appellate proceedings, for caption assessment year, had been granted fresh registration u/s 12AA of the Act, benefit of such exemption should be given even for the caption assessment year." Our case is on the same analogy/ identical to the above case, trust has applied for re-registration so benefit of 12A should be granted for the relevant and earlier Assessment year under Sec 12A. 10. It was decided in similar case by the ITAT JAIPUR BENCHES,"B" JAIPUR, in case of Akhil Bhartiya Shree Khandal Vipra Mahasabha, Pushkar, Ajmer.Vs The ITO (Exemption), Ajmer. vide ITA. No. 345/JP/2018 order Pronounced on 07/01/2019 vide Pb No. 62-74: The appellant trust, which obtained registration during the pendency of the appeal, shall be entitled to exemption under Section 11 and 12 of the Act. The registration under Sect....
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....ur case is similar and also covered under ITAT cases Since we have filed application within time period and so cannot be rejected AND complied all the conditions required for registration under 12A, So Assessee is eligible for registration Under form 10AB u/s 12A of Income Tax Act 1961. 12. In similar case, it was decided by the Hon'ble ITAT AMRITSAR BENCH, AMRITSAR., in case of Dharam Chandan Charitable Trust 313/1, Dr. Sham Singh. Vs. CIT (Exemption) Chandigarh The Commissioner of Income Tax-Exemption, Jaipur. vide ITA No.653/Asr/2019 order Pronounced on 26/04/2023 vide PB No.90-93: "For registration u/s 12AA it is clearly stipulating that the ld. CIT(E) shall satisfy himself about the objects and the genuineness of its activities. The assessee made the payments in relation to charitable activities of trust. The ld. DR had not made any strong objection related to submission of the assessee and the evidence which are filed before the bench. We set aside the order of the ld. CIT(E) and direct to allow the registration of the assessee." In our case the assessee trust has done all the activities of the trust within the objective of the Act. The document....
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....n documents/explanations by 05/03/2024. The assessee trust submitted reply with complete documents/explanations on 05-03-2024 VIDE PB No.150-151. Hence it should be considered and should be registered, however rejection order in form no. 10AB was passed by CIT(E) which should be made null and void and this rejection order must be cancelled and grant us the 80G registration. With these facts and background of case, grounds of appeal are dealt as under: Grounds of Appeal Ground No. 1 CIT(E) has wrongly rejected the application for registration of assessee society u/s 80G stating that the Approval u/s 80G cannot be granted without registration u/s 12AB and Commencement of activities and also wrongly cancelled provisional registration. Hence CIT(E) order should be made null and void and CIT(E) may be directed to grant for 80G registration and rejection/cancellation order of 80G must be quashed. Reply of ground no. 1 1. The assessee trust is a charitable trust duly registered with Sub- Registrar, Jaipur V vide registration endorsement serial number 2007397010949 on dated 20.07.2007 vide PB No.1-17. Further the trust amended its deed on dated ....
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....g) To publish the magazines and circulars which related to the latest Securitization and Recovery Judgments and case laws of Honorable Supreme Court and Honorable High courts for the purpose of general awareness and about Securitization and Recovery Laws. h) To establishment of committee to organize Seminars, meetings in various places and organize the programs about Securitization and Recovery proceedings, for the benefits of general public, borrowers, secured creditors, lawyers to inform the latest recovery laws. i) To promote the "Alternative dispute system" proceeding e.g. Arbitration, Conciliation between the Banking sector and Financial Institutions and borrowers and to settle disputes. 2. Rebuttal of Point 02 & 2.1 of CIT Order: The Ld. CIT(E) rejected the approval u/s 80G application in view of non registration u/s 12AB but assessee trust is in appeal for grant of 12A before your Honor, so 80G must be granted on consequential to ITA No.627/JPR/2024. 3. Rebuttal of Point 3, 3.4 & 4 on commencement of activities of CIT Order: The trust had filed all the replies of show cause notices within time on dated 13/14-2-2024 and 05....
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....b and Haryana High Court held that the only requirement for granting registration under section 10(23C) (vi) is the satisfaction of the prescribed authority with regard to the genuineness of the activities of the assessee. Since the Principal CIT had not doubted the genuineness of the activities of the society, the Tribunal rightly directed the Principal CCIT to grant registration under section 10(23C) irrespective of non-compliance of the Right to Education Act, 2009. (d) In Paramount Education Charitable Trust v. CIT [2015] 61 taxmann.com 283(Chandigarh - Trib.), the assessee-trust filed an application for registration under section 12A. Commissioner rejected assessee's application on ground that assessee trust was not registered under new Haryana Registration & Regulation of Societies Registration Act, 2012. The Tribunal held that aims and objects of assessee were of general public utility as well as to provide education and were covered by provisions of section 2(15). If the activities of assessee were charitable in nature, registration of assessee couldn't be denied merely on fact that it was not registered under Societies Act. In the light of above, ....
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.... which can be clearly seen from Trust Deed Hence eligible for registration Under form 10AB u/s 80G of Income Tax Act 1961. 6. It was decided in similar case by the ITAT "Jaipur" BENCH, in case of Shri Parnami Panchayat 1, Parnami Mandir, Adarsh Nagar, Jaipur Vs ITO(Exemptions), Ward-1, Jaipur vide I.T.A. No. 14/JPR/2023 order Pronounced on 18/08/2023 vide Pb No. 42-61: "Although the assessee trust, since past many years was registered under Section 12AA of the Act, however, such certificate during the course of reassessment proceedings was not traceable. Accordingly, benefit of Section 11 was denied by the AO, vide order dated 30.09.2017. Against the order of the AO, assessee trust preferred an appeal before the CIT(A). The said appeal was filed within stipulated time period i.e. on 16.11.2017. In the interregnum, the assessee trust again applied for registration u/s 12AA of the Act, which was granted by ld. CIT(E) on 27.10.2018, with effect from AY 2019-20. Before the ld. NFAC, it was submitted that since the assessee trust, before the order being passed by Ld. CIT(A), in the first appellate proceedings, for caption assessment year, had been granted fresh registr....
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....me Tax-Exemption, Jaipur. vide ITA No.278/JODH/2023 order Pronounced on 10/11/2023. vide Pb No. 75-89: "Therefore, in these facts and circumstances we hold that the Assessee had made the application in form 10AB within the prescribed time limit and hence it is valid application. Therefore, we direct the ld.CIT(E) to treat the application as filed within statutory time and verify assessee's eligibility as per the Act. The ld.CIT(E) shall grant opportunity to the assessee. Assessee shall be at liberty to file all the necessary documents before the ld.CIT(E). Accordingly, the appeal of the assessee is allowed for statistical purpose. Since we have set aside to Ld.CIT(E), we do not intend to adjudicate each ground separately." Our case is similar and also covered under ITAT cases Since we have filed application within time period and so cannot be rejected AND complied all the conditions required for registration under Sec 80G, So Assessee is eligible for registration Under form 10AB u/s 80G of Income Tax Act 1961. 9. In similar case, it was decided by the Hon'ble ITAT AMRITSAR BENCH, AMRITSAR., in case of Dharam Chandan Charitable Trust 313/1, Dr....
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....s ITO(Exemptions), Ward-1, Jaipur vide LT.A. No. 14/JPR/2023 order Pronounced on 18/08/2023 42-61 4. Decision of Hon'ble TAT JAIPUR BENCHES, "B" JAIPUR, in case of Akhil Bhartiya Shree Khandal Vipra Mahasabha, Pushkar, Ajmer Vs The ITO (Exemption), Ajmer. vide ITA. No. 345/JP/2018 order Pronounced on 07/01/2019 62-74 5. Decision of Hon'ble ITAT JODHPUR BENCH:: JODHPUR, in case of Bhamashah Sundarlal Daga Charitable Trust, Bagree Mohallan, Bikaner 334001 Vs The Commissioner of Income Tax-Exemption, Jaipur. vide ITA No.278/JODH/2023 order Pronounced on 10/11/2023 75-89 6. Decision of Hon'ble ITAT AMRITSAR BENCH, AMRITSAR., in case of Dharam Chandan Charitable Trust 313/1, Dr. Sham Singh. Vs. CIT (Exemption) Chandigarh The Commissioner of Income Tax-Exemption, Jaipur. vide ITA No.653/Asr/2019 order Pronounced on 26/04/2023 90-93 7. Balance Sheet, Income & Expenditure A/c and Receipts and Payments A/c for F.Y. 2020-21 94 8. ITR, Computation, Balance Sheet, Income & Expenditure A/c, Receipts and Payments A/c for F.Y. 2021-22 95-98 9. ITR, Computation, Balance Sheet, Income & Expenditure A/c, Receipts and Payments A/c for ....