Trust Not Eligible for Sec. 12AB Registration If It Isn’t Registered Under State Trust Act Applicable to It | ITAT
- News|Blog|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 11 July, 2024
Latest from Taxmann
Case Details: Lokesh Agarwal Dharmarth vs. Commissioner of Income Tax (Exemption) - [2024] 164 taxmann.com 228 (Jaipur-Trib.)
Judiciary and Counsel Details
- Sandeep Gosain, Judicial Member & Dr Dipak P. Ripote, Accountant Member
- Vikash Rajvanshi, AR for the Appellant.
- Arvind Kumar, CIT-DR for the Respondent.
Facts of the Case
The assessee was a charitable trust formed in December 2012. During the relevant assessment year, it applied for registration under section 12AB. The application was rejected by the CIT(E) on the following grounds:
- Non-registration of the assessee with the Rajasthan Public Trust Act.
- The genuineness of activities could not be ascertained due to non-compliance.
- Incomplete Form 10AB filed by the assessee.
Aggrieved by the order, an appeal was filed to the Jaipur Tribunal.
ITAT Held
The Tribunal held that it was an admitted fact that the assessee was not registered under the Rajasthan Public Trust Act. The assessee submitted that its application for registration under the Rajasthan Public Trust Act was pending with the competent authority.
As per section 17 of the Rajasthan Public Trust Act, it is mandatory for a Public Trust to register under the Rajasthan Public Trust Act within three months from the date of its creation. Section 12AB(1) of the Income-tax Act mandates that all the applicable laws shall be followed, and if any applicable law is not followed by the Trust, then it is not eligible for registration.
In the instant case, admittedly, the Rajasthan Public Trust Act applies to the assessee, and the assessee did not follow its provisions. Therefore, as per section 12AB(1), the assessee was not eligible for registration under section 12AB of the Act.
List of Cases Reviewed
- New Noble Education Society v. Chief Commissioner of Income-tax [2022] 143 taxmann.com 276 (SC) (para 6.2) followed.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
