Maharishi Markendeya Sushrut Sewa Sansthan Vs CIT (Exemption) (ITAT Jaipur)
The assessee appealed against an order dated 24.02.2024 by the CIT (Exemption), Jaipur, passed under section 12AB of the Income Tax Act, 1961, whereby its application for registration was rejected. The assessee raised three primary grounds: that the CIT(E) erred in denying approval under section 12AB; that the rejection was based on technical grounds and violated natural justice; and that the CIT(E) was incorrect in concluding that the assessee failed to substantiate the genuineness of its activities. At the outset, the Tribunal noted a delay of 163 days in filing the appeal. The assessee submitted that the delay occurred because it mistakenly believed the consultant had completed necessary formalities and was not informed otherwise. An affidavit was filed stating that the delay arose due to lack of proper guidance. While the Departmental Representative objected, the Tribunal accepted the assessee’s explanation, holding that the assessee should not suffer due to the consultant’s lapse, and condoned the delay.
The facts reveal that the assessee filed Form 10AB on 30.09.2023 seeking registration under section 12AB. The CIT(E) issued notices on 27.01.2024, 10.02.2024, and 16.02.2024, requiring submission of documents, but the assessee failed to comply on all three occasions. Consequently, the CIT(E) proceeded ex parte. He rejected the application on grounds of incomplete Form 10AB, lack of registration under the Rajasthan Public Trust Act, 1959, and inability to verify the genuineness of activities due to non-compliance. The CIT(E) further stated that in terms of section 12AB(1)(b)(ii)(B), if not satisfied, the authority must reject the application and cancel earlier provisional registration. Accordingly, the assessee’s provisional registration dated 06.04.2022 was also cancelled.
