Jain Citizen Vs CIT (ITAT Jaipur)
Jaipur ITAT Restores U/s 12AB and 80G Registration Applications; Holds CIT(E) Should Issue Show Cause Before Rejecting Charitable Trust’s Claim
The Jaipur ITAT set aside the CIT(E)’s orders rejecting registration under sections 12AB and 80G and restored the matter for fresh consideration, holding that the trust must be afforded a proper opportunity to establish the genuineness of its charitable activities before its applications are rejected.
The CIT(E) had rejected the trust’s registration on the grounds that its activities were primarily for the benefit of the Jain community, allegedly attracting section 13(1)(b), and that the trust had failed to furnish audited financial statements and beneficiary details. Before the Tribunal, however, the assessee contended that it had already uploaded the audited financial statements, registration documents and detailed particulars of beneficiaries, including names, addresses, mobile numbers and educational assistance granted to persons belonging to different communities. It also highlighted its charitable activities such as distribution of ration kits, medical aid, food packets, sanitisers, hospital kits, educational assistance, and feeding of birds and animals.
The Tribunal observed that the genuineness of charitable activities must be examined on the basis of the nature of the activities actually carried out, and if the Commissioner entertained any doubts, the principles of natural justice required issuance of a show cause notice before rejecting the application. It therefore remanded the matter to the CIT(E) to reconsider the applications after granting the assessee an effective opportunity to produce documentary evidence demonstrating that its charitable activities benefit the public at large and not merely a particular religious community. Since the issue of registration under section 80G was dependent upon the outcome of the section 12AB proceedings, that matter was also remanded. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
This appeal is filed by the assessee against the order of the Ld CIT (E), Jaipur, dated 22/01/2026, rejecting the application for registration dated 29/06/2024, filed by the assessee in Form 10AB u/s 12A(1) of the Income Tax Act 1961( henceforth the Act ).
