Setu Sansthan Vs CIT (Exemption) (ITAT Jaipur)
The Income Tax Appellate Tribunal (ITAT), Jaipur Bench, has set aside orders from the Commissioner of Income Tax (Exemption) [CIT(E)], Jaipur, pertaining to the rejection of provisional registration under Section 12AB and provisional approval under Section 80G of the Income Tax Act, 1961, for Setu Sansthan, an assessee trust. The Tribunal’s decision, issued on April 24, 2025, remands the matters back to the CIT(E) for fresh adjudication, primarily citing violations of natural justice principles and the absence of a Document Identification Number (DIN) on the rejection orders.
The case involved four appeals filed by Setu Sansthan challenging two separate orders from the CIT(E) dated December 9, 2024. The core of the dispute revolved around the denial of tax exemptions crucial for charitable organizations.
Assessee’s Grievances Highlight Procedural Lapses
Setu Sansthan raised several grounds of appeal, categorizing them under the respective sections of the Income Tax Act. For the rejection of provisional registration under Section 12AB, the assessee contended that the CIT(E) failed to record independent satisfaction for rejection and did not issue a show cause notice, which was deemed “wrong, unwarranted and bad in law.” A significant procedural challenge was also mounted on the grounds that the rejection order lacked a separate DIN, arguing this contravened circulars and notifications issued by the Central Board of Direct Taxes (CBDT). Similar arguments were advanced against the rejection of provisional approval under Section 80G, asserting a lack of independent satisfaction, absence of a show cause notice, and the crucial omission of a DIN on the rejection order.
