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”).
