Balaji Educational & Welfare Trust Vs CIT (ITAT Chandigarh)
Section 12AB: Rejection Of Registration Application Cannot Automatically Cancel Existing Registration—ITAT
Registration Rejection And Cancellation Require Separate Examination
The Chandigarh ITAT has held that rejection of an application under Section 12AB cannot automatically supersede an existing registration. Cancellation requires compliance with the separate statutory procedure under Section 12AB(4), including identification of a specified violation, notice to the trust, an effective opportunity of hearing, and a reasoned order.
However, the Tribunal upheld the rejection of the trust’s registration application because it failed to establish genuine charitable activities or concrete steps to revive its educational operations. The decision thus distinguishes between the authority’s power to reject an application and its power to cancel an existing registration.
Background Of The Application
Shree Balaji Educational & Welfare Trust was constituted on September 11, 2011, with objects covering education, medical relief, relief to the poor, and other charitable purposes. It filed Form 10AB on September 29, 2025, under Section 12A(1)(ac)(ii), seeking registration under Section 12AB.
During examination, the CIT(E) sought an activity report and supporting evidence. The trust explained that it had operated a primary school before the COVID-19 pandemic, suspended operations during the pandemic, and intended to revive the school.
