All India Securitisation And Enforcement of Security Interest Association Vs CIT (Exemption) (ITAT Jaipur)
Summary: The Income Tax Appellate Tribunal, Jaipur Bench, considered whether the Commissioner of Income Tax (Exemption), Jaipur, could reject a fresh application for charitable registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961 merely because an earlier application involving the same trust and similar issues had been rejected and was pending in appellate proceedings. The assessee, All India Securitisation And Enforcement of Security Interest Association, was registered under the Rajasthan Public Trust Act, 1959 and had previously obtained provisional income-tax registration for Assessment Years 2022-23 to 2024-25. Its original application dated 29 September 2023 for regular registration had been rejected for alleged non-genuineness of activities. An earlier Tribunal order dated 4 April 2025 remanded that application for fresh consideration, but the Commissioner again rejected it on 23 January 2026. That rejection was challenged in a separate appeal, ITA No. 958/JPR/2026.
The assessee filed another Form 10AB application on 29 September 2025. In response to departmental questionnaires and a show-cause notice, it furnished audited financial statements, trust documents, income-tax returns, computations, photographs, registration certificates and explanations concerning its activities. The trust stated that it organised legal-awareness seminars and educational programmes concerning the SARFAESI Act, recovery of bank dues, RBI norms, SME financing, insolvency law and related regulatory matters. It referred to a programme held at the Punjab National Bank training centre and submitted participant feedback forms. The assessee also asserted that its activities were supported by donations, without charging participation fees, and were undertaken for general public utility within the meaning of Section 2(15).
The Commissioner rejected the fresh application by order dated 30 January 2026 as non-maintainable and infructuous, relying principally on the rejection of the earlier registration proceedings. The Tribunal held that this approach was legally incorrect. The Income-tax Act contains no provision making a pending appeal or an earlier rejected application an automatic bar to a fresh registration application. The Commissioner was required to examine the fresh application independently on its merits, including the charitable objects, genuineness of activities and documentary evidence. The Tribunal emphasised the importance of substance over form and found that the Commissioner had failed to properly consider the assessee’s submissions.
However, because the original registration dispute remained pending before the Tribunal in ITA No. 958/JPR/2026, the Jaipur Bench did not itself direct grant of registration. Instead, it set aside the impugned rejection and remanded the fresh application to the Commissioner for independent reconsideration on merits. The assessee was also given liberty to withdraw the fresh application if it succeeded in its pending appeal concerning the original application, thereby making the later proceedings redundant. The appeal was 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, rejecting the application for registration filed in form 10AB on 29th September, 2025 u/s 12A (1) (ac)(iii) of the Act 61, vide order dated 30/01/2026.
2. Grounds of appeal taken in form 36 are as follows:
“1. Ground 1 The Ld. CIT (E) has wrongly and illegally rejected the fresh application for registration filed u s 12A (1) (ac)(iii) of the Income Tax Act 1961 vide order dated 30 01 2026 declaring it as non maintainable and infructuous which is bad in law and 1 contrary to the directions of the Honble ITAT Jaipur in ITA No 627 JPR 2024 dated 04 04 2025 The ITAT had specifically set aside the earlier rejection order and remanded the matter for fresh adjudication after affording reasonable opportunity of hearing which direction the Ld CIT E has failed to comply with
2. Continued Ground 1 The Ld CIT E has further erred in holding that the set aside rejection order dated 23 01 2026 and the present fresh application stand on identical grounds without independently adjudicating the fresh application on merits The 2 assessee trust had duly filed replies to both the questionnaire notice dated 05 11 2025 and the Show Cause Notice dated 24 12 2025 and yet the Ld CIT E proceeded to reject the application as infructuous by placing sole reliance on the set aside rejection thereby violating the principles of natural justice
3. Continued Ground 1 Further the Ld CIT E has erred in rejecting the application on the ground of Non Genuineness of Activities without properly considering the documentary evidence ledger of expenses and other supporting documents submitted by the assessee trust The trust has been conducting legal awarenessseminars and charitable activities for the benefit of the general public borrowers secured creditors and lawyers since its inception and all expenses are duly reflected in the financial statements Hence the rejection order dated 30 01 2026 is liable to be quashed and the assessee trust is entitled to registration u s 12A 1 ac ii of the Income Tax Act 1961
4. Ground 2 The appellant prays your honor to add, amend OR alter 4 all OR any of the grounds of the appeal on OR before the date of hearing.”
3. The facts emerging from records are that the trust is registered under the Rajasthan Public Trust Act 1959 vide order dated 18th March , 2025, and is also provisionally registered u/s 12A (1)(ac) (vi) vide order dated 06/10/2021 for the period AY 2022-23 to AY 2024-25 and has applied for permanent registration on 29/09/2023 in form 10AB u/s 12A(1)(ac)(iii) which has been rejected by the Ld CIT (E) in absence of genuineness of activities being proved and the matter carried in appeal before the Hon’ble Income Tax Appellate tribunal (in ITA No: 627/JPR/2024) has been remanded back to the Ld CIT(E) vide order dated 04/04/2025, for fresh consideration of the registration application. While considering the registration application afresh, the Ld CIT (E) has rejected the same again vide order dated 23/01/2026 due to the reason “ Non genuineness of Activities”, against which the assessee has filed an appeal (2ndround) before the Hon’ble Tribunal which is posted for hearing on 7th September, 2026 (in ITA No: 958/JPR/2026).
4. Meanwhile, pending the set aside matter before the Ld. CIT (E), the assessee filed a fresh application in form 10AB on 29/09/2025 , seeking registration u/s 12A(10 (ac) (iii) , in response to which questioner were issued from the office of the Ld CIT ( E ) on 05/11/2025 and again on 24/12/2025.on both the occasions the assessee has furnished its reply along with written submissions, along with audited financials for the years March, 2023, 2024 and 2025,copies of trust deeds, copies of ITR, computation of income, and copies of photographs as proof of carrying on activities as per its objects, Devasthan Certificate, and all other allied documents.
5. Further in reply to the SCN dated 24/12/2025, in course of fresh application, the assessee submitted that:
“In this regard, it is respectfully submitted that the applicant trust intends to pursue and continue with the pending set-aside proceedings arising out of the ITAT order passed. The present application filed in Form No. 10AB was made under a bona fide belief and without prejudice to the rights of the trust in the set-aside proceedings. Since the issues relating to registration are already under consideration in the set-aside proceedings, the trust opts to proceed with the said set-aside proceedings. Since the Provisional registration was up to AY 2024-25 ending 31.03.2024 so the trust has applied for renewal of the present Form No. 10AB application on 29.09.2023 for further period after 31.03.2024, so as enable proper adjudication in accordance with law.
It is respectfully submitted that the assessee trust is a charitable trust engaged in public welfare activities without any distinction of caste, creed, colour, sex or section, with the main object of promoting and improving the economic and financial health of the banking sector and financial institutions in India. The trust carries out its objects by educating and advising banks and financial institutions on matters relating to SARFAESI ACT 2002, Recovery of dues, RBI norms, SME financing, government policies and regulatory expectations through seminars and legal awareness programmes conducted at nationalized banks, particularly in rural and semi-urban areas.
It is clarified that the trust role is purely advisory and educational, carried out at the request of banks themselves. In the present case, the seminar was organised at the Training Centre of Punjab National Bank, and a Trustee Chartered Accountant was invited as a resource person by PNB. Accordingly, the banner, podium and projector screen displayed the name of PNB, which is customary and does not negate the involvement or objects of trust. We are enclosing some of the feedback forms from some participants with their Name, Designation, Mobile number and Mail Id of the Seminar on the IBC Code vide PB No.1-2
Further, there is no statutory requirement under the Income-tax Act, 1961 or trust laws mandating a trust to have or display a logo during its activities. To substantiate the trust’s claim, the feedback form issued by the branch managers of Punjab National Bank to the Chartered Accountant for the said seminar is enclosed vide PB no 1-2 evidencing that the programme was conducted in furtherance of the trust’s charitable and educational objects.”
6. However, this fresh application has been rejected by the Ld. CIT (E) observing the same to be non – maintainable and infructuous (asunder):
“2.1. The applicant has filed an application for registration u/s 12A(1)(ac)(iii) on 29.09.2025. During the course of proceedings, it is also noticed that another proceeding of set-aside is pending in this case, which is rejected vide this office order no. ITBA/EXM/F/EXM44/2025-26/1085121878(1) dated 23.01.2026. The order is rejected on the ground of ‘Non-Genuineness of activities’. The applicantis not able to prove genuineness of activities on which earlier application was rejected on 27.03.2024. Thus, grounds of earlier rejection as well as set aside rejection stand same. Therefore, the application filed for registration u/s 12A(1)(ac) (iii) is liable to be rejected for not proving its genuineness and same is non-maintainable and infructuous.”
7. In course of hearing the Ld AR of the assessee submitted that the objects of the trust falls under the category of advancement of any other objects of general public utility, and as per its stated objects the assessee is carrying on legal awareness seminars, educational programme and charitable activities for the benefit of the general public and as such the requisite conditions as per provisions of section 2(15) of the Act, for availing exemptions are duly satisfied.
7.1 He further submitted that all queries raised by the Ld. CIT (E) in course of fresh registration process has been replied along with copies of financial statements over the years and has referred to the same to submit that no fees has been charged from any person and the same is operating under donations and the entire amount has been applied for the said activity with negligible surplus eventually running into deficit.
8. The Ld DR relied on the order of the Ld CIT (E).
9. We have heard the rival submission and the materials on record and we find that the Ld. CIT (E) has arrived at an incorrect conclusion that the second application is infructuous , simply because the original registration application is sub judice and has rejected this application without verification and examination of documents on merits and without giving any cognizance to the submissions filed by the assessee in course of fresh registration application.
10. The provisions of the Act 61, does not contain any clauses that a pending appeal is a bar to a new application and we are of the opinion that the fresh application cannot be rejected simply because the previous one was rejected (or the same is currently under appeal ).
11. The Ld CIT ( E ) is under a legal obligation to examine the fresh application independently focussing on the genuineness of activities and its objects , because for all practical purpose it is not the technicalities but the “substance over form” that matters.
12. However, considering the factual aspect of the matter that the original registration application dated 29th September, 2023, is pending in appeal in ITA – 958 / JPR/ 2026, and the same is pressed by the assessee, ( which is also on the identical issue of registration ) and already posted for hearing and also considering the fact that this application connected to this instant appeal ITA No 828/JPR/2026 , has not been adjudicated and considered on merits by the Ld CIT ( E ) , and has been treated as infructuous , the same is set aside and remanded back to the Ld CIT ( E ) for reconsideration of the same on merits independently .
13. However, the assessee will be at liberty to withdraw this fresh application for registration pending before the Ld CIT (E), if the Hon’ble Tribunal rules in favour of the assessee, in ITA 958/JPR/2026, and validates the original application, making this fresh application legally redundant.
14. In the result the appeal of the assessee is allowed for statistical purpose.
Order pronounced on 12.08.2026 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963.
