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TMI Blog2024 (9) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... d the case to the file of CIT(E) for making a decision a fresh and thus we set aside the order dated 22.03.2024 passed for rejecting the registration of the trust u/s. 12AB with a direction to the assessee to produce all the related to the issue. Appeal of the assessee allowed for statistical purpose. - SHRI SANDEEP GOSAIN, JM AND SHRI RATHOD KAMLESH JAYANTBHAI, AM, For the Assessee: Shri P.C. Parwal (C.A.) For the Revenue: Shri Arvind Kumar (CIT) ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM The two appeals were filed by the assessee on 16.05.2024, both appeals are filed against the order of the ld. Commissioner of Income Tax, Exemption, Jaipur [ for short CIT(E)]dated 22.03.2024 there by rejecting the registration of the assessee trust u/s. 12AB of the Income Tax Act [ for short Act ] and recognition u/s 80G of the Act. 2. Vide this common judgment, both the above-mentioned appeals are being disposed off, as they have been argued together with the consent of the parties. 3.1 In ITA No.697JPR/2024 the assessee has raised following grounds: - 1. The Ld. CIT(E) has erred on facts and in law in rejecting the application filed by the assessee u/s 12A(1)(ac)(iii) in Form No. 10AB seeking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which it received Govt. Anudan and purpose of such Anudan. In absence of these details, it cannot be determined whether applicant is applying its income in accordance with same objects for which they get Aid and whether receipts are commercial or business as fall under grant. The receipts are as pwer object of trust also could not be produced. 2. As per reply as well as gift deed of land, the applicant has received land through gift deed, which was registered by the Sub registrar, Pisagan on 22.06.2010 and also the applicant has running goshala from such gifted premises. The applicant has duly shown such land in Balance sheet for F.Y. 2020-21 2021-22. However, the applicant has not shown this property in Balance sheet for F.Y. 2022-23 and onwards by stating that same is not transferred in the name of society. By this way, the applicant has misrepresented the facts of land as well as building. Therefore, it is concluded that the applicant has furnished wrong statement/ data and thus falls out of the scope of registration u/s 12A. 3. Vide reply dated 11.03.2024, the applicant has admitted that it has applied for registration under Rajasthan Gopalan Act. 1960. Thus, as on date, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on 30.09.2023. The Ld. CIT(E) held that assessee is not registered under Rajasthan Public Trust Act, 1959 the genuineness of activities are not verifiable and therefore the application for registration was rejected and the provisional registration granted to the assessee was also cancelled. Further the application for permanent approval u/s 80G was also rejected for the reason that the same cannot be granted without registration u/s 12AB the 'application filed on 30.09.2023 is not maintainable since it was not filed within 6 months of the commencement of activities or before 30.09.2022 and the provisional approval granted to the assessee was also cancelled. Submission:- 1. At the outset it is submitted that as per section 12AB of the Act, the CIT on receipt of the application made by the assessee u/s 12A(1)(ac) of the Act shall call for such document or information or make such enquiries as he thinks necessary to satisfy about the genuineness of the activities and the compliance of such requirement of any other law for the time being in force as are material for the purpose of achieving its objects. 2. The Ld. CIT(E) has observed that assessee is not registered under R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far as the observation of L.d. CIT(A) that the land received in gift is not shown in the Balance Sheet for FY 2022-23 is concerned, it may be noted that all the asset which is shown in the Balance Sheet as on 31.03.2022 (PB 22) are also shown in the Balance Sheet as on 31.03.2023 (PB 21). Therefore, the observation made by Ld. CTT(E) that it could not be determined whether the assessee is genuinely carrying out the charitable activity is incorrect. 5. The Ld. CTT(E) has denied approval u/s 80G(5) of the Act for the reason that the application filed is beyond the time. It is submitted that sub-el. (iii) of the first proviso to sec. 800(5) provides that assessee shall make an application for grant of approval where it has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier. In the present case the assessee has already commenced its activities since it was incorporated on 31.05.2005. Words or within six months of commencement of its activities, whichever is earlier occurring in said sub-cl. (iii) are applicable to newly formed trust/institution. For the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. CIT(Exemptions) is directed to treat the application as filed within statutory time and verify assessee's eligibility for approval as per the Act. 6. Otherwise also, CBDT vide Circular No.7/2024 dt. 25.04.2024 has extended the time for filing the application for permanent approval till 30.06.2024 whereas in earlier Circular No.6/2023 dt. 24.05.2023 the time for filing application for permanent approval u/s 80G was not extended till 30.09.2023. Therefore, on harmonidus interpretation of both the circular, the application filed by the assessee on 30.09.2023 be considered as filed in time. The Hon'ble Madras High Court in case of Sri Nrisimha Priya Charitable Trust Vs. CBDT Anr. (2024) 8 NYPCTR 418/ 161 Taxmann.com 209 has held that the cl. (ii) of the Circular dt. 24th May, 2023 is arbitrary and violative of Art. 14 of the Constitution of India and accordingly, would be ultra vires the Constitution and therefore directed to consider the applications of the petitioners as to the recognition/approval u/s 80G(5). The head note of the decision reads as under:- Deduction under s. 80G-Recognition of institution, etc. under s. 80G(5)-Validity of Circular No. 6 of 2023, dt. 24th M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Hence the order passed by CIT(E) cancelling the provisional registration and provisional approval from 22.03.2022 is illegal bad in law. In view of above, Ld. CIT(E) be directed to grant permanent registration u/s 12AB and permanent approval u/s 80G(5) of the Act. 6.1 To support the various grounds so raised by the ld. AR of the assessee and has relied upon the following evidences in support of the contentions so raised:- 7. During hearing, the ld. AR of the assessee so far as in relation to one of reason for rejection of 12AB was that the assessee not registered under the Rajasthan Public Trust Act, 1959. On the hand the ld. AR of the assessee contended that the assessee is not required to be registered as the assessee is already recognized under the Rajasthan Gaushala Act, 1960 and therefore, assessee is not required to get registered under the Rajasthan Public Trust Act 1959 [ RPT Act ] and on the other hand the assessee has without going into that dispute already made application for Registration under RPT Act and therefore, submitted that the assessee be given one chance to get cure the this aspect of the matter As regards the genuineness of the activities the assessee submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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