Atomic Power Evolution Awareness Foundation Vs CIT(E) (ITAT Jaipur)
ITAT Restores Section 12A Registration Matter Because CIT(E) Must Reconsider Compliance and Charitable Activities; Section 12A Renewal Sent Back Because Registration Under State Trust Law Required Fresh Examination; ITAT Sets Aside Section 12A Registration Rejection as Amended Trust Objects Were Not Shown to Be Non-Charitable; ITAT Remands Section 80G Approval Because Section 12A Registration Requires Fresh Decision.
The assessee trust filed two appeals before the Income Tax Appellate Tribunal (ITAT), Jaipur, challenging separate orders of the Commissioner of Income Tax (Exemption) [CIT(E)] rejecting (i) its application for renewal of registration under Section 12A(1)(ac)(ii) of the Income-tax Act and (ii) its application for renewal of approval under Section 80G(5). The trust had been registered under Section 12A prior to 1 April 2021, had obtained fresh registration under Section 12A(1)(ac)(i) in May 2021 valid up to AY 2026-27, and thereafter applied for renewal, which was rejected.
The CIT(E) rejected the application for renewal of registration under Section 12A on three grounds. First, it held that the trust was not registered under the Rajasthan Public Trust Act, 1959. According to the CIT(E), Section 12AB(1)(b)(i) required compliance with other applicable laws, and since registration under the Rajasthan Public Trust Act was mandatory for public charitable trusts, the assessee was not eligible for renewal. The CIT(E) further observed that even the registration earlier granted under Section 12A(1)(ac)(i) was invalid on this basis.
