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Facts
The appellant, MPS Foundation Charitable Trust, applied for approval under Section 80G of the Income Tax Act. The CIT(E) rejected the application solely on the ground that the trust was not registered under the Rajasthan Public Trust Act, 1959, and also cancelled its provisional approval.
Held
The Tribunal held that registration under the Rajasthan Public Trust Act, 1959, is not an essential requirement for registration under Section 12AB of the Income Tax Act, nor for approval under Section 80G. The appellant had already been granted registration under Section 12AB.
Key Issues
Whether registration under the Rajasthan Public Trust Act, 1959, is a prerequisite for obtaining approval under Section 80G of the Income Tax Act, when the trust is already registered under Section 12AB.
Sections Cited
80G, 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”B-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER .
Appellant submitted an application u/s 80G of the Income Tax Act, 1961, (hereinafter referred to as the “Act”) before Learned CIT(Exemption), Jaipur seeking has approval. Vide impugned order dated 21.12.2024, Learned CIT(E) rejected the said application on the sole ground that the applicant trust is not registered under Rajasthan Public Trust Act, 1959.
MPS Foundation Charitable Trust vs. CIT(E) At the same time, Learned CIT(E) cancelled the provisional approval granted to the applicant trust under clause (iv) of first proviso to sub-section (5) of section 80G of the Act. That is how, the appellant trust is before this Appellate Tribunal.
Arguments heard. File perused.
As noticed above, Learned CIT(E) has rejected the approval sought by the applicant only on the ground that it was not registered under RPT Act, 1959. In this regard, it may be mentioned here that Co-ordinate Bench ITAT, Jaipur has held in APJ Abdul Kalam Education and Welfare Trust vs. CIT(E) decided on 15.01.2025 that for the purposes of registration of such institutions, u/s 12AB of the Act, registration under RPT Act, 1959 is not one of the essential requirements. In view of said decision, said ground does not survive for rejection of approval under section 80G of the Act.
In the course of arguments, we have enquired from ld. AR for the appellant as to whether the applicant trust stands registered u/s 12AB of the Act. The answer to the query is in affirmative. Nothing to the contrary has been submitted or referred to on behalf of the department.