Amaltash Residents Welfare Association Vs CIT (Exemptions) (ITAT Chandigarh)
The ITAT Chandigarh dismissed the assessee’s appeal against the order of the Commissioner of Income Tax (Exemptions), Chandigarh dated 17.02.2026, which rejected its application in Form No. 10AB for registration under Section 12AB of the Income-tax Act, 1961 for AY 2027-28. The assessee was a Residents Welfare Association constituted for the welfare, maintenance and management of a residential complex. Its activities included maintenance of common areas, housekeeping, security, facility management, lift operation and maintenance, sanitation, cultural and social programmes, community welfare activities and other facilities exclusively for residents. It collected maintenance charges, service fees and other member contributions and also derived rental income from common facilities. The CIT(E) concluded that the activities were confined to a closed group of members and did not constitute charitable activities under Section 2(15).
Before the Tribunal, the assessee argued that “advancement of any other object of general public utility” under Section 2(15) has wide scope and that its activities were undertaken without profit motive. It submitted that maintenance collections merely reimbursed common expenses and that incidental receipts were applied towards the Association’s objects. It also contended that only one hearing opportunity had been provided by the CIT(E), violating natural justice.
