Jaipur Virasat Foundation Vs CIT Exemption (ITAT Jaipur)
Jaipur ITAT: Once Section 12AB Registration Is Granted, 80G Approval Cannot Be Denied Alleging Non-Genuine Activities or Non-Registration Under State Trust Law
Jaipur Virasat Foundation v. CIT (Exemption) – ITA No. 556/JPR/2026, AY 2026-27, order dated 10.08.2026
The assessee-trust’s application for approval u/s 80G(5) was rejected by the CIT(E) on three grounds: it was allegedly not registered under the Rajasthan Public Trust Act, 1959, its charitable activities were considered non-genuine, and Form 10AB was regarded as incomplete.
Before the ITAT, the assessee pointed out that it had simultaneously applied for registration u/s 12AB and approval u/s 80G and had subsequently been granted registration u/s 12AB for AYs 2027-28 to 2036-37.
The Tribunal held that once the CIT(E) had granted registration u/s 12AB, approval u/s 80G could no longer be denied on the grounds of non-registration under the Rajasthan Public Trust Act or non-genuineness of activities, because registration u/s 12AB itself had been granted only after the authority was satisfied regarding fulfillment of those conditions.
As regards the alleged incompleteness of Form 10AB due to non-furnishing of the last three years’ annual accounts and activity note, the ITAT observed that these very matters had necessarily been considered by the CIT(E) while examining and accepting the genuineness of the assessee’s activities for 12AB registration. Consequently, their alleged non-furnishing in the 80G proceedings became inconsequential.
Accordingly, the ITAT directed the CIT(E) to grant approval u/s 80G and allowed the assessee’s appeal.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
The present appeal has been filed by the assessee against the order passed by the CIT (Exemption) (hereinafter referred to as “Ld. CIT(E)”), dated 13.01.2026 denying grant of approval sought by the assessee under Section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).
2. The grounds raised by the assessee read as under:-
1. The Learned Commissioner of Income Tax (Exemption) has erred in law as well as on facts in rejecting the application for registration under Section 80G of the Income Tax Act, 1961 without considering the reply submitted by assessee vide its letter dated 26-11-2025 duly acknowledged by the Income tax department, such action of the Learned Commissioner of Income Tax (Exemption) is against the principles of natural justice
2. The Learned Commissioner of Income Tax (Exemption) has erred in rejecting the application on the ground that the trust is not registered under RPT Act, 1959 whereas the Assessee is duly registered under the Rajasthan Public Trust Act, 1959 and the certificate of registration was submitted vide reply dated 26-11-2025.
3. The Learned Commissioner of Income Tax (Exemption) has erred in rejecting the application on the ground of non-genuine charitable activities whereas the trust submitted the details of activities vide letter dated 26.11.2025 which has not been considered by the Learned Commissioner of Income Tax (Exemption)
4. The rejection of application under Section 80G is arbitrary, unjustified and contrary to the provisions of Section 80G(5) read with Section 12AB of the Income Tax Act, 1961.
5. The Petitioner craves the right to add, alter OR in any way amend the ground of appeal.
3. Order of Ld. CIT(E) reveals that the said approval was denied for the reason that the assessee was found to be not registered under the Rajasthan Public Trust Act 1959 (in short referred to as “RPT”), its activities were not found to be genuine and Form 10AB was noted to be incomplete. The Ld. CIT( E) has noted that in the absence of RPT registration the assessee is not entitled to registration u/s 12AB of the Act, (para 3.6 page 11 of Ld. CIT(E) order).
4. The ld. Counsel for the assessee before us submitted that the assessee had been granted registration u/s 12AB of the Act, which had been simultaneously applied for along with its application seeking approval u/s 80G of the Act. Copy of the order of the Ld. CIT(E) granting registration u/s 12A of the Act dated 06.07.2026 for AYs 2027-28 to 2036-37 was filed before us.
5. Considering the fact that the assessee has been granted registration u/s 12AB of the Act, the grant of approval u/s 80 G of the Act can no longer be denied for non registration under RPT Act and on account of non genuine activities since it is only after being satisfied with the fulfillment of the aforesaid conditions that registration u/s 12AB is granted.
6. So far as the findings of Ld. CIT(E) that incomplete Form 10AB was filed, the order of Ld. CIT(E), reveals Form 10AB to be found incomplete on account of self-certified copies of the annual accounts of the applicant for the last three years not having been filed and note on the activities of the applicant not having been filed.
7. It is but obvious that the annual accounts of the applicant and also its activities were duly considered by the Ld. CIT(E) while finding the activities of the assessee genuine for granting registration u/s 12AB of the Act. Therefore, the non-furnishing of the said documents before the Ld. CIT(E) for the purpose of grant of approval u/s 80G(5) of the Act is also inconsequential.
8. In view of the above, considering the registration granted to the assessee u/s 12AB of the Act, the ld. CIT(E) is directed to grant approval u/s 80G to the assessee.
9. The appeal of the assessee is allowed accordingly.
Order pronounced in the Open Court on 10.08.2026
