Trust Denied Section 12AB Registration Due to Missing State License Gets Relief After Proving Independent Operation

ITAT overturned denial of registration under s.12AB despite trust's non-registration under Rajasthan Public Trust Act 1959. Tribunal held RPT Act registration not mandatory for tax registration as statutes operate independently without overriding effect. On FCRA compliance, matter remanded to CIT(E) with direction for trust to amend deed requiring prior MHA approval for foreign contributions. Regarding genuineness of activities, ITAT found CIT(E)'s observations self-contradictory and unsupported, noting trust had purchased land for hostel construction as new entity. Following precedent, mere lack of extensive operations at initial stage cannot justify registration denial. Registration granted subject to FCRA compliance amendment. .....

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