Saraswati Shiksha Samiti Vs CIT (Exemption) (ITAT Jaipur)
The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) dealt with Saraswati Shiksha Samiti’s appeal challenging the rejection of its application for registration under Section 12AB of the Income-tax Act, 1961, and seeking condonation of a delay of 524 days in filing the appeal.
The assessee, an educational society registered since 1979, was granted provisional registration under Section 12A in 2021 and later filed for regular registration under Section 12AB in March 2023. The Commissioner of Income Tax (Exemption) [CIT(E)] rejected the application in September 2023 citing two grounds: (i) non-registration under the Rajasthan Public Trust Act, 1959 (RPT Act) and (ii) non-compliance with notices allegedly sent to the assessee’s email.
The assessee argued that no such notices were received, and the society’s president, aged 85 and a retired government servant, was suffering from prolonged illness, preventing him from managing compliance. On these facts, ITAT held that the rejection suffered from violation of natural justice.
On the legal issue, ITAT relied on its coordinate Bench decision in APJ Abdul Kalam Education and Welfare Trust v. CIT (Exemption) [2025] 171 com 569 (Jaipur – Trib.), which clarified that registration under the RPT Act, 1959 is not a prerequisite for approval under Section 12AB. Both statutes operate in separate fields, and absence of RPT registration cannot be a ground to deny Income Tax registration.
Considering the president’s illness and advanced age, the Tribunal condoned the 524-day delay, set aside the rejection order, and remanded the matter back to the CIT(E) to decide afresh on merits after affording proper opportunity of hearing.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
