Rental Income Not a Bar to 12A Registration When Applied to Charity: ITAT Pune

Marwadi Navyuvak Vachanalaya Vs CIT(Exemption) (ITAT Pune) Summary: The Income Tax Appellate Tribunal (ITAT), Pune Bench, accepted the appeal of Marwadi Navyuvak Vachanalaya, a religious trust operating a library, and directed the Commissioner of Income Tax (Exemption) [CIT(E)] to grant the trust registration under Section 12A of the Income Tax Act, 1961. The CIT(E) had rejected the application, arguing that the trust’s substantial rental income of ₹6.66 lakhs (32.76% of its total income) from letting out shops within its premises indicated a “commercial nature” and amounte...