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Facts
The appellant, Shri Sanatan Dharam Shikshan Sansthan, applied for registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) rejected the application because the appellant was not registered under the Rajasthan Public Trust Act, 1959. The appellant filed an appeal with a delay, seeking condonation. The appellant argued that they had a bonafide belief that registration under RPT Act was necessary and cited a precedent.
Held
The Tribunal noted that the appellant had applied for registration under the RPT Act during the pendency of the Section 12AB application, though it was still pending. A prior decision by a Coordinate Bench held that registration under RPT Act is not an essential requirement for Section 12AB registration. The Tribunal found the delay in filing the appeal to be for a sufficient cause.
Key Issues
Whether the rejection of the application for registration under Section 12AB of the Income Tax Act, 1961, for want of registration under the Rajasthan Public Trust Act, 1959, was justified, and whether the delay in filing the appeal should be condoned.
Sections Cited
12AB of the Income Tax Act, 1961, Rajasthan Public Trust Act, 1959
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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR.
Before: Dr. M. L. MEENA & SHRI NARINDER KUMAR
In view of the above discussion, this appeal is disposed of and the impugned order dated 24.08.2024 is set aside. Application under section 12 AB of the Act is restored to the files of Learned CIT(E) for decision afresh, after providing an opportunity to the applicant to submit Certificate of Registration under RPT Act, 1959.
Shri Sanatan Dharam Shikshan Sansthan Judicial Member having joined and presided over through virtual mode from Jaipur Benches, order needs pronouncement under Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 by placing the details on the notice board. File be consigned to the record room after the needful is done by the office.