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IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR

BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, HON’BLE JUDICIAL MEMBER

ITA No. 272/Jodh/2024 (Assessment Year 2023-24)

Shri Vimal Sudarshan Chandra ITO Exemption Udaipur Parmarthik Jain Trust

11 Swadhaya Mandir Maldas Street, Udaipur, (Raj.) PAN No. AAITS7760B

Assessee by Shri Pankaj Mogra, CA (Physical)

Revenue by ShriBhanwar Singh Ratnoo CIT-DR(Virtual)

Date of Hearing 16.02.2026. Date of Pronouncement 25.03.2026.

ORDER

DR. MITHA LAL MEENA, A.M.:

This appeal filed by the assessee is directed against the order of the

Commissioner Income Tax Exemption, Jaipur [hereinafter referred to as the CIT (Exemption)] dated 26.03.2024 challenging rejection of its

application of registration under Section 12A of the Income Tax Act.

2. At the outset, the learned Counsel for the appellant has submitted that appellant has applied for registration under Section 12A and was granted the provisional registration under Section 12A of the Act by the

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CIT(Exemption) on 02.12.2022 (APB page no. 21 to 22), thereof. The appellant has applied for final registration under 10AB on 25.09.2023, however, the Ld. CIT(Exemption) vide its order dated 26.03.2024 has denied the final registration for the Trust and rejected the application of the Assessee for final registration under Section 12AB of the IT Act, mentioning the reason that objects of the Trust were for a benefit of

particular community.

3. The Ld. AR argued that the Ld. CIT(Exemption) while rejecting the application for final registration has not considered the facts of the case, provisions of Income Tax Act and judicial precedents and he has pressed only on the one object clause without even examining actual activities carried out by the Trust. The AR emphasised that at the stage of grant of registration under Section 12AB, the competent authority required only to examine that whether the object of the trust is of charitable nature and whether activities are genuine. The AR further submitted that the question relating to application of income or possible violationof Section 13 of the Act fall within the domain of assessment proceedings and cannot be ground for refusal of registration at the stage of grant of registration as at this stage the authority is not required to examine the

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application of income or draw conclusions under Section 13 of the Act. In support, the AR placed reliance on the following judgments

pronounced by Hon’ble Apex court and different High Courts:-  Ananda Social and Educational Trust Vs. CIT reported in 114

taxmann.com 693.

 Commissioner of Income Tax (Exemption) Vs. Nanak Chand Jain Charitable Trust reported in [2024] 162 taxmann.com 353 (Punjab

and Haryana).

 St. Michaels Educational Association Vs. Commissioner of Income Tax reported in [2019]111 taxmann.com 242 (Patna).

4. The Ld. AR also submitted that the activities of the Trust are not confined to any single community but are allowable to the benefit of general public at large. He argued that courts have rapidly held that benefit of the public does not destroy charitable nature, and it reflects origin or background of Trust but does not restrict benefits. AR submitted that on going through the Financial Statements of the Trust, it is apparently clear that activities of the appellant are open to public at

large irrespective of a community.

5. The counsel for the assessee argued that when the objects of the assessee Trust are religious as well as charitable in nature and that the

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charitable objects of the assessee Trust was for the benefit of the public at large then exemption under Section 12AB cannot be denied to the

assessee under the Income Tax Act.

6. Again, the AR submitted that provisions of Section 13 of the Act are required to be taken into consideration at