TaxTMI 
TaxTMI 
2026 (9) TMI 1059
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....vir Dal Mandir, Ashirwaad Sewa Sansthan, Shri Krishna Dhareshwar Mahadev Gowshala Samiti, Shree Gaushala, Sanvitha Edu Shape Foundation, Shri Agarsen Jeev Jantu Kalyan & Go Sewa Samiti, Pashchimi Rajasthan Bhriguvansy Brahman Deshantary Charitable Trust, Seema Jan Kalyan Samiti, Patidar Samaj Vikas Sansthan Chokhla Chitri, Krishna Gopal Ayurvedic Dharmarth Aushdhalya Trust, Vidisha Educational And Welfare Society, Smt. Nirmala Devi Ostawal Seva Sansthan, India Vision 2020, Divine Blessings Charitable Foundation, Shri Ambesh Guru Krishna Mahavir Goshala Sansthan, Shri Guru Jalandharnath Gaushala Sewa Samiti, Vardhman Jain Swetamber Pedhi, Shree Nagar Maheshwari Sabha Bhilwara, Kalani And Co.LLP, Shree Nagar Maheshwari Sabha Bhilwara, Kalani And Co.LLP Versus CIT(E), Jaipur, Shree Shree Sanatan Gau Seva Sansthan Versus Pr. CIT(E), Jaipur, Vedruna Seva Sadan Society Versus ITO-Exemption, Ward, Shri Badhamata Adhyatmik Evam Sanskrutik Seva Trust Versus ITO Exemption, Ward, Udaipur, Yuwak Parishad Versus ITO, Jodhpur, Rajput Mahila Shikshan Sansthan, Shree Gopal Sarvajanik Gouseva Samiti Versus ITO, Sumerpur, Bhartiya Shikshan Sansthan Versus ITO(E) SHRI AMIT SHUKLA, HON'BLE JUDICIAL....
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....f these institutions to abandon the statutory remedy and that, immediately upon becoming aware of the rejection of their applications and obtaining appropriate professional advice, necessary steps were taken for filing the appeals before the Tribunal. The Ld. DR, while relying upon the respective impugned orders, did not seriously controvert these factual explanations and left the issue of condonation to the discretion of the Bench. 3. We have considered the explanations furnished by the respective assessees for the delay in filing the appeals. Having regard to the reasons stated above and the circumstances in which these institutions are functioning, we find that the delay was neither deliberate nor attributable to any lack of bona fides on their part. The explanations furnished are reasonable and constitute sufficient cause for not filing the appeals within the prescribed period. In our view, where the delay stands satisfactorily explained, the assessees should not be deprived of an adjudication on merits merely on account of such procedural lapse. Accordingly, in the interest of justice, the delay in the respective appeals, as indicated in the table hereinafter, is condoned a....
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....o be under process II 3 Sec. 12AB / connected Sec. 80G, wherever applicable Absence of Rajasthan Public Trust registration and/or other deficiency coupled with observation that genuineness of activities was not established III 4 Sec. 12AB/ Sec. 80G Incomplete/ defective Form No. 10AB, application under an incorrect clause or analogous procedural deficiency IV 5 Sec. 12AB / Sec. 80G, as applicable Non-compliance with notices and/or failure to furnish requisite documents and supporting material V 5. . The aforesaid classification is not merely for convenience of presentation. The nature and width of the enquiry which survives in these cases is materially different. In one set, the very deficiency which constituted the basis of rejection has subsequently ceased to exist; in another, the process for curing that deficiency has already been initiated but awaits action by another statutory authority; in a third, an observation concerning genuineness has been recorded without any elaborate factual examination; while in some cases the impediment is essentially procedural or arises from inadequate compliance. It would, therefore, be inappropriate to ....
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....ctivities and that the rejection essentially rests upon absence of registration under the State enactment at the relevant point of time. 7. In our view, the subsequent grant of registration under the Rajasthan Public Trust Act cannot be regarded as an inconsequential development. What weighed with the Ld. CIT(E) in these cases was not any positive material demonstrating that the objects of the concerned trust were non-charitable or that its activities were not genuine, but the absence, at the relevant point of time, of registration under the Rajasthan Public Trust Act. Once that very registration has subsequently been granted by the competent statutory authority, the factual substratum on which the rejection rested has materially altered. The subsequent certificate goes directly to the foundation of the reason assigned in the impugned order and, therefore, deserves to be taken into consideration before the statutory claim is finally foreclosed. To perpetuate the rejection merely because the certificate was not available on the date on which the Ld. CIT(E) decided the application, notwithstanding that the deficiency has since ceased to exist, would place form above the substance ....
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....SOCIETY, DIVYA JYOTI VIDYALAYA, AT- KAMBODIYA, PO-SIMALWARA, DIST. DUNGARPURA-314403 9. ITA 1002/JODH/2026 SEEMA JAN KALYAN SAMITI, MADHAV BHAWAN, 18/357, CHOPASANI HOUSING BOARD, JODHPUR-342008 10. ITA 1010/JODH/2026 SEEMA JAN KALYAN SAMITI, MADHAV BHAWAN, 18/357, CHOPASANI HOUSING BOARD, JODHPUR-342008 11. ITA 1003/JODH/2026 PATIDAR SAMAJ VIKAS SANSTHAN CHOKHLA CHITRI, C/O, SHRAWAN KUMAR GUPTA ADVOCATE, 107, UNIQUE AURA BUILDING, P-3 JYOTI NAGAR, LAL KOTHI, SAHKAR MARG, JAIPUR- 302015 12. ITA 1011/JODH/2026 PATIDAR SAMAJ VIKAS SANSTHAN CHOKHLA CHITRI, C/O, SHRAWAN KUMAR GUPTA ADVOCATE, 107, UNIQUE AURA BUILDING, P-3 JYOTI NAGAR, LAL KOTHI, SAHKAR MARG, JAIPUR- 302015 13. ITA 1007/JODH/2026 VIDISHA EDUCATIONAL AND WELFARE SOCIETY, 3 KA 46, SECTOR 5 HIRAN MAGRI UADIPUR,- 313002* 14. ITA 1015/JODH/2026 SMT. NIRMALA DEVI OSTAWAL SEVA SANSTHAN, C/O CA R.S. POONIA, D-82-B, SIWAD AREA, KRISHNA MARG, BAPU NAGAR, JAIPUR-302015 15. ITA 1016/JODH/2026 SMT. NIRMALA DEVI OSTAWAL SEVA SANSTHAN, C/O CA R.S. POONIA, D-82-B, SIWAD AREA, KRISHNA MARG, BAPU NAGAR, JAIPUR-302015 16. ITA 1025/JODH/2026 INDIA VISION 2020, TANK HOU....
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....therefore, is to preserve the application and afford the assessee reasonable opportunity to bring the certificate on record upon its issuance rather than compel initiation of the registration proceedings afresh. 11. Accordingly, the concerned assessee shall place before the Ld. CIT(E) the present status of its application under the Rajasthan Public Trust Act and shall produce the registration certificate as and when the same is issued. The Ld. CIT(E) may appropriately regulate the restored proceedings having regard to the status of such application. Upon production of the certificate, its authenticity, validity and applicability shall be verified and the application under section 12AB shall thereafter be carried to its logical conclusion in accordance with law. Where the absence of the State registration was the only substantive impediment noticed in the impugned order and the certificate is ultimately found to be in order, registration shall be granted subject to fulfillment of the statutory requirements relevant to such verification. Category III - Cases involving an observation regarding genuineness of activities S. No. ITA No. Name of assessee 1. ITA 512/JO....
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....on is constituted as a trust or professes charitable objects. The enquiry into genuineness is a substantive facet of the registration proceedings and the Ld. CIT(E) is entitled, and indeed required, to examine whether the activities stated to have been undertaken are genuine, whether they bear a real and discernible nexus with the objects for which the institution has been constituted and whether the statutory conditions governing registration stand fulfilled. Such satisfaction should, however, emerge from an examination of the primary material and the explanation of the assessee. A conclusion affecting the statutory entitlement of an institution ought to rest upon an adequate factual foundation and not merely upon the absence of documents which prevented the enquiry itself from being meaningfully undertaken. 15. The applications falling within this category, therefore, require a fuller factual examination. The concerned assessees shall be permitted to furnish their trust deeds or other constitutional documents, accounts, details of charitable programmes and activities actually undertaken, supporting evidence and such other primary material as may reasonably be required. Where r....
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....apable of being subsequently furnished ought not ordinarily to foreclose examination of the substantive claim if the defect is legally capable of being cured. 17. The concerned assessees shall, therefore, be afforded an effective opportunity to furnish the appropriate Form No. 10AB, rectify the defect in the application and place the supporting documents on record, insofar as such rectification is permissible under the applicable statutory provisions. Upon such compliance, the Ld. CIT(E) shall examine the application on its substantive merits and determine the eligibility of the assessee in accordance with law. This direction does not obliterate or dilute any substantive condition governing registration, nor can it be understood as permitting an otherwise time-barred or legally untenable application to be validated merely by characterizing the defect as procedural. The purpose of the opportunity is only to ensure that a genuinely curable defect in the manner of presentation does not, by itself, eclipse adjudication of a claim which is otherwise capable of consideration under the statute. Category V - Non-compliance with notices or inadequate supporting material S. No. I....
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....rresponding obligation upon the assessee. It cannot be treated as an avenue for repeated default, avoidable adjournments or indefinite prolongation of the statutory proceedings. The respective assessees shall extend due cooperation, respond to the notices issued by the Ld. CIT(E) and furnish the prescribed forms, constitutional documents, accounts, details of activities, registration certificates and such other information as may reasonably be called for within the time allowed. Upon such compliance, the Ld. CIT(E) shall examine the material and pass a reasoned and speaking order in accordance with law. If, despite the opportunity now afforded, an assessee fails without reasonable cause to comply with the legitimate requirements of the proceedings, the Ld. CIT(E) shall be at liberty to proceed in accordance with law on the basis of the material available before him. 20. In respect of connected appeals relating to approval under section 80G, we note that in several cases, such approval has been declined substantially or consequentially because registration under section 12AB had either not been granted or the application seeking such registration itself stood rejected. Once the u....
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....ently been obtained: The respective assessees shall produce before the Ld. CIT(E) the certificates of registration subsequently issued by the competent authority under the Rajasthan Public Trust Act, 1959. The Ld. CIT(E) shall verify the authenticity, validity and applicability of such certificates. Where absence of such registration constituted the sole or principal ground for rejection and the impugned order does not contain any separate substantive adverse finding concerning the charitable nature of the objects or genuineness of the activities, the enquiry on restoration shall remain confined to verification of the certificate and such statutory requirements as are necessarily incidental thereto. If, upon verification, the certificate is found to be valid and applicable and no other statutory impediment noticed in the impugned order survives, registration under section 12AB shall be granted in accordance with law. The restoration in this category shall not be treated as an occasion for embarking upon an unrestricted de novo enquiry on grounds which did not form the basis of the impugned order. (ii) Cases where registration under the Rajasthan Public Trust Act, 1959 is u....
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....rdance with law. This direction shall not be construed as overriding any requirement relating to limitation, eligibility or any other substantive condition prescribed by the statute. (v) Cases involving non-compliance with notices or inadequate supporting material: The concerned assessees shall be afforded one final and effective opportunity to furnish the documents, accounts, explanations and other material required for examination of their applications. The opportunity is intended to facilitate substantive adjudication and shall not be treated as an avenue for repeated default or indefinite prolongation of the proceedings. The assessees shall extend full cooperation and comply with the requirements of the Ld. CIT(E) within the time allowed. Upon such compliance, the applications shall be examined on merits and disposed of by reasoned and speaking orders. If there is further unjustified non-compliance despite the opportunity now granted, the Ld. CIT(E) shall be at liberty to proceed in accordance with law on the basis of the material available before him. 23. Applications seeking approval under section 80G: Wherever approval under section 80G has been rejected substant....
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....d to ensure that the nature and extent of the exercise to be undertaken in each category remains clear while giving effect to this consolidated order, the operative position emerging from our findings may be set out as under: Category Nature of appeals Scope of proceedings before the Ld. CIT(E) Final direction of the Tribunal I Registration under Rajasthan Public Trust Act subsequently obtained Verification of authenticity, validity and applicability of certificate and statutory matters necessarily incidental thereto If certificate is found valid and no other statutory impediment recorded in the impugned order survives, registration under section 12AB shall be granted in accordance with law. Where this was the sole/ principal ground, restoration shall not become an unrestricted de novo enquiry. II Registration under Rajasthan Public Trust Act applied for and presently under process Permit certificate to be brought on record upon issuance and appropriately regulate proceedings meanwhile Upon production, verify the certificate and carry the application under section 12AB to its logical conclusion in accordance with law, without requiring the assess....