Youth Brigade Charitable Trust Vs CIT (ITAT Bangalore)
One Rejected Form 10AB Application Is Not a Lifetime Ban on Registration: Bengaluru ITAT
A charitable trust applied for regular registration under section 12AB. Its application was rejected because it did not appear before the Commissioner of Income Tax (Exemptions). The trust did not appeal that rejection. When it filed a fresh Form 10AB application, the Commissioner refused to consider it, reasoning that the earlier order had attained finality and the new application was therefore void.
The Bengaluru ITAT has rejected that approach. It held that neither section 12A nor section 12AB permanently bars a trust from applying again after an earlier rejection. An appeal against the first rejection is also not a condition for filing a fresh application. The Commissioner must examine the new application and the material submitted with it, then pass a reasoned order.
The Tribunal did not itself grant registration to Youth Brigade Charitable Trust. It sent the matter back for a fresh decision on the trust’s eligibility.
Two applications, two very different reasons for rejection
Youth Brigade Charitable Trust was constituted under a trust deed dated 17 April 2015. It received provisional registration in Form 10AC on 23 January 2023, effective from AY 2023–24 to AY 2025–26.
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