Non-Registration of Trust Under State Trust Act Not a Hurdle for Registration Under Income Tax Act | ITAT

Case Details: APJ Abdul Kalam Education and Welfare Trust vs. Commissioner of Income-tax, Exemption - [2025] 171 taxmann.com 569 (Jaipur-Trib.)

Judiciary and Counsel Details

• Dr. S. Seethalakshmi, Judicial Member & Gagan Goyal, Accountant member
• Deepak Sharma, Adv. for the Appellant.
• Ms Alka Gautam, CIT, Ld. DR for the Respondent.

Facts of the Case

The assessee-trust applied for registration under section 12AB. The Commissioner (Exemption) rejected the application because the assessee was not registered under the Rajasthan Public Trust Act, 1959 (RPT).

ITAT Held

On appeal, the Jaipur Tribunal held that Section 17 of the Rajasthan Public Trust Act, 1959 requires that trustees of the trust have to apply for registration of a public trust. However, no section in the RPT Act, 1959 prohibits a trust from carrying out its objects if it is not registered under the RPT Act, 1959.

Even if the assessee trust is not registered with the RPT Act, 1959 and the concerned officials under the RPT Act, 1959 deem it necessary to get the entity registered under section 17 of the RPT Act, 1959, appropriate action can be taken against the trustees of the trust. However, this issue can’t be a hurdle in getting registration before the Income Tax Department under section 12AB.

There is no law which is required to be complied with for achieving the objects of the assessee trust. Both the statutes, i.e. The Income Tax Act, 1961 and RPT Act, 1959 have to be read together, and none of them has an overriding effect.

Therefore, the Commissioner (Exemption) was to be directed to accept the application for registration of the assessee.

List of Cases Reviewed

• CIT (E) v. Rural Education and Women Welfare Society Sas Nagar [2020] 114 taxmann.com 191 (SC) (Para 15) followed.
• Aurora Educational Society v. CCIT [2012] 20 taxmann.com 46 (A.P.)
• New Noble Educational Society v. CCI [2022] 143 taxmann.com 276 (SC) (Para 7) distinguished.

List of Cases Referred to

• Aurora Educational Society v. Chief CIT [2012] 20 taxmann.com 46/206 Taxman 72/[2011] 339 ITR 333 (Andhra Pradesh) (para 4)
• New Noble Educational Society v. Chief CIT [2022] 143 taxmann.com 276/[2023] 290 Taxman 206/[2022] 448 ITR 594 (SC) (para 6)
• CIT (Exemptions) v. Kids-R-Kids International Education & Social Welfare Trust [2018] 99 taxmann.com 384/[2017] 399 ITR 572 (Punjab & Haryana) (para 9)
• Paramount Education Charitable Trust v. CIT [2015] 61 taxmann.com 283/70 SOT 44 (Chandigarh – Trib.) (para 9)
• Ananda Social & Educational Trust v. CIT [2020] 114 taxmann.com 693/272 Taxman 7/426 ITR 340 (SC) (para 13)
• CIT (Exemption) v. Rural Education And Women Welfare Society Sas Nagar [2020] 114 taxmann.com 191/269 Taxman 466 (SC) (para 15).