Shree Bhuwal Mataji Gaushala Sanstha Vs CIT(E) (ITAT Jodhpur)
Jodhpur ITAT: 12AB/80G Registration Cannot Be Rejected Mechanically for Curable Defects – Remand Must Be Confined to Actual Grounds of Rejection
In a significant consolidated order involving numerous charitable trusts/institutions, the Jodhpur ITAT dealt with rejection of registration under Sections 12A/12AB and, in some cases, consequential rejection of approval under Section 80G. The Tribunal classified the cases into six categories depending upon whether rejection arose from absence of Rajasthan Public Trust registration, genuineness concerns, procedural defects, non-compliance, or consequential 80G rejection.
The Tribunal held that where registration under the Rajasthan Public Trust Act, 1959 was subsequently obtained, this subsequent development goes to the very foundation of the rejection. The CIT(E) must verify the certificate and, if it is valid and no other statutory impediment survives, registration under Section 12AB should be granted. Importantly, such restoration cannot become an excuse for an unrestricted de novo enquiry on new grounds.
Where the assessee had already applied for Rajasthan Public Trust registration and the application was pending, the ITAT held that the Section 12AB proceedings should be preserved and the assessee permitted to produce the certificate when issued. The assessee need not restart the entire 12AB registration process merely because another statutory authority had not yet issued the certificate.
