Trust’s 12A Registration Cancelled for Absence of RPT Act Certificate: ITAT Directs CIT(E) to Grant Registration After Verification [Read Order]

The Jodhpur Bench of Income Tax Appellate Tribunal ( ITAT ) directed Commissioner of Income Tax(Exemption)[CIT(E)] to grant registration after verifying the trust’s 12A registration under Income Tax Act,1961, which was earlier cancelled for absence of a Rajasthan Public Trust Act (RPT) certificate.

Shree Jain Swetamber Teerapanth Mahila, appellant-assessee, through assessee counsel, submitted that the trust had initially applied for provisional and full registration before the CIT(E). The registrations were cancelled for contravening section 12AB(1)(b)(i)(B) of the Act. At the time of the application, the trust was not registered under the Rajasthan Public Trust Act, 1959.

After the impugned orders were passed, the trust obtained registration under section 17(1) of the RPT Act, 1959, and a copy of the certificate dated 01/08/2024 was placed on record. The departmental counsel verified the certificate and raised no objections.

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A delay of 163 days was noted in filing the appeal. The assessee submitted an affidavit explaining the reason for the delay, and the departmental counsel did not raise any objection. Considering the explanation, the delay was found justified and was condoned, and the appeal was admitted for adjudication.

The two member bench comprising Anikesh Banerjee(Judicial Member) and Dr.Mitha Lal Meena (Accountant Member) observed that the assessee’s application under section 12A(1)(ac)(iii) and the cancellation of provisional registration under section 12A(1)(ac)(vi) had arisen due to the absence of the required registration certificate.

It was recorded that the assessee had obtained the registration certificate under the RPT Act, 1959, and was no longer in default under section 12AB(1)(b)(i)(B) of the Act. The tribunal directed the application to be restored to the file of the CIT(E), who was to verify the certificate and grant registration in accordance with law.

Accordingly the appeal of the assessee was allowed.

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