Citation- Gurukul Shikshan Sansthan v. CIT(E)
ITAT: Jaipur
ITA No: 482 of 2024
Assessment Year: 2022-23 TO 2024-25
Date of Order- July 3, 2024
Brief Facts:
The assessee’s application for registration under section 12AB was rejected by the CIT(E) since the assessee had neither registered under Rajasthan Public Trusts Act, 1959 nor submitted any explanations or documents in response to the show cause notice issued by the CIT(E).
Aggrieved, the assessee filed an appeal before ITAT.
Observations of the Tribunal
It was mandatory for the assessee to register under Rajasthan Public Trust Act, within three months from the date of creation. However, the assessee had accepted that it did not have registration under the Rajasthan Public Trusts Act, 1959 when it had applied for registration under section 12AB.
Section 12AB(1) itself required that all the applicable laws had to be followed and if any applicable law was not followed by the Trust, then it was not eligible for registration
The SC in New Noble Educational Society v. Chief CIT, (2022) 448 ITR 594 had also held that charitable Institutions and Societies which may be regulated by other state laws had to comply with them and such compliance shall be taken into account for registration by CIT(E).
The assessee had also not submitted details, explanations or documents sought in the show cause notice issued by the CIT(E). The details were not even submitted before the Tribunal. Hence, it was difficult to verify the genuineness of activities undertaken by the assessee.
Consequently, the Tribunal upheld the order of the CIT(E) rejecting the application of registration.
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