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TMI Blog2024 (7) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... rust Act, it is mandatory for a Public Trust to register under Rajasthan Public Trust Act, within three months from the date of which the Public Trust is created. As admitted fact that assessee had not registered itself. Section 12AB(1) mandates that all the applicable laws shall be followed and if any applicable law is not followed by the Trust, then it is not eligible for registration. In this case, admittedly Rajasthan Public Trust Act is applicable to the assessee and assessee has not followed provisions of Rajasthan Public Trust Act, therefore, as per section 12AB(1), assessee is not eligible for registration u/sec.12AB r.w.s. 12A of the Act. The Hon ble Supreme Court in the case of New Noble Education Society [ 2022 (10) TMI 855 - SUP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, grounds of appeal raised by the assessee are dismissed. - SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER For the Assessee : Shri Vikash Rajvanshi AR For the Revenue : Shri Arvind Kumar CIT(DR) ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is against the orders of ld. Commissioner of Income Tax(Exemption), Jaipur dated 16.12.2022 rejecting assessee s application for registration u/sec.12AB of the Income Tax Act, 1961 filed on online on 15.06.2021. The assessee raised the following grounds of appeal : 1. The CIT(E) wrongly rejected the 10AB application for 12A permanent registration by Order dated 16.12.2022 but no appeal could be filed as main trustee who is 67 years old and was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/sec.12AB of the Act on following grounds Non-registration of the assessee with Rajasthan Public Trust Act. Genuineness of activities could not be ascertained due to non-compliance. Incomplete Form 10AB filed by the assessee. 3. During the hearing, the ld.AR of the assessee submitted that assessee is a Trust which was formed on 26.12.2012. Assessee filed copy of the Trust Deed which was in Hindi. The said Trust Deed was amended on 05.03.2013. Ld.AR has also enclosed certain photographs showing blood donation camps and posters of social marriages. However, these documents were never filed before the ld.CIT(E) by assessee. 4. It is also an admitted fact that assessee is not registered under Rajasthan Public Trust Act. The ld.AR submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of failure to comply with Section 43(1), or failure to intimate changes in the trust, or for supplying false information, the trustee or other person in charge, can be penalized by Section 43 (11). Section 44 empowers the Commissioner to direct charitable organizations and trusts to comply and register under the Act. 68. The assessees had argued that since they were registered under the Andhra Pradesh Societies Registration Act, 2001 or were trusts duly registered, they could not be compelled to comply with state laws as a condition for consideration of their application as charitable institutions, under Section 10 (23C). 69. This court is of the opinion that the findings in the impugned judgment on this aspect are sound. The requirement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions to protect the interests of trusts, especially funds and properties. 70. In view of the above discussion, it is held that charitable institutions and societies, which may be regulated by other state laws, have to comply with them- just as in the case of laws regulating education (at all levels). Compliance with or registration under those laws, are also a relevant consideration which can legitimately weigh with the Commissioner or other concerned authority, while deciding applications for approval under Section 10 (23C). 6.2 The provisions of the Andhra Pradesh Charities Act and provisions of the Rajasthan Public Trust Act are almost identical. Therefore, decision of the Hon ble Supreme Court in the case of New Noble Education Soc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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