Registration Under RPT Act Not Essential for 12AB Registration: ITAT Jaipur

Dhapi Devi Tormal Seva Samiti Dhandhan Vs CIT Exemption (ITAT Jaipur)

Income Tax Appellate Tribunal (ITAT), Jaipur Bench, has issued an order in the appeal filed by Dhapi Devi Tormal Seva Samiti Dhandhan, an institution asserting its status as a charitable entity. The appeal contested an order dated March 17, 2024, issued by the Learned Commissioner of Income Tax (Exemption) [CIT(E)], which had rejected the institution’s application for registration under Section 12AB of the Income Tax Act, 1961. The ITAT’s decision mandates that the matter be returned to the CIT(E) for a new determination, concurrently condoning a substantial delay in the appeal’s submission.

Case Background: Charitable Trust Seeks Tax Exemption

Dhapi Devi Tormal Seva Samiti Dhandhan, established on June 26, 2014, through a registered trust deed, outlines its objectives as providing educational facilities to impoverished children, assisting vulnerable individuals, supporting educational institutions, and protecting cows. As an organization claiming charitable purposes, it sought registration under Section 12AB of the Income Tax Act, a prerequisite for availing tax exemptions on its income.

The CIT(E), however, rejected the institution’s application for this crucial registration, citing three primary reasons:

1. Incomplete Form 10AB: The application form submitted was deemed deficient.

2. Non-registration under Rajasthan Public Trust Act, 1959 (RPT Act): The institution had not secured registration under the specific state public trust legislation.

3. Genuineness of Activities: Doubts were raised regarding the authenticity and scope of the charitable activities claimed by the institution.

Appeal Filed After 250-Day Delay; Condonation Sought