TaxTMI 
TaxTMI 
2026 (9) TMI 907
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....on), Jaipur ["Ld. CIT(E)"], whereby the assessee's applications seeking registration under section 12AB and approval under section 80G(5) of the Income-tax Act, 1961 have been rejected. Since both the appeals arise from the same set of facts and the fate of the application under section 80G is substantially connected with the application under section 12AB, both the appeals were heard together and are being disposed of by this consolidated order. 2. The brief facts are that the assessee is a public charitable trust constituted vide Trust Deed dated 11.11.2011 and registered with the Sub-Registrar, Nokha. It was earlier granted registration under section 12AA vide order dated 22.02.2012 with effect from 11.11.2011. The principal charitabl....
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....(1) of the RPT Act. He submitted that the assessee does not operate the Dharamshala as an independent private establishment. The Dharamshala has been established and is being operated pursuant to an MOU dated 28.12.2011 entered into with S.P. Medical College, Bikaner, a State Government institution. Our attention was drawn to the MOU and, in particular, to the constitution of the Management Committee and the administrative framework governing the Dharamshala. 5. From the material placed before us, it is seen that the Management Committee contemplated under the MOU has substantial representation of Government authorities. The Committee is headed by the Principal of S.P. Medical College/P.B.M. Hospital and includes representatives of the D....
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....apply to it by virtue of the statutory exclusion contained in section 77(1). 8. Section 12AB permits examination of compliance with requirements of any other law for the time being in force which are material for achieving the objects of the trust or institution. Likewise, while considering approval under section 80G, the competent authority is required to examine the statutory conditions prescribed thereunder, including genuineness of activities and compliance with applicable law material for achieving its objects. (Income Tax India⁠) However, such an enquiry necessarily presupposes that the requirement under the other enactment is applicable to the particular trust. A registration under another enactment cannot be insiste....
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....ges cannot determine this question. Source of receipts and administrative control operate in altogether different spheres. 11. In the present case, the material placed before us prima facie shows substantial governmental involvement in the functioning of the Dharamshala. The facility operates in conjunction with a Government medical institution; the Management Committee is headed by the Principal of S.P. Medical College/P.B.M. Hospital; Government officials are represented therein; important administrative and financial matters are governed by the prescribed supervisory mechanism; and the Dharamshala exists primarily to provide accommodation and allied facilities to patients undergoing treatment at the Government hospital and their atten....
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.... of the statutory enquiry. The Ld. CIT(E) has proceeded from the absence of RPT registration to infer non-compliance, whereas the anterior question was whether such registration was legally required at all. Where applicability of an enactment itself is excluded upon satisfaction of a statutory condition, absence of registration under that enactment cannot become a ground for rejection unless the claim of such statutory exclusion is first examined and negatived on facts and in law. 15. Insofar as ITA No. 867/Jodh/2026 relating to registration under section 12AB is concerned, we are therefore unable to sustain the rejection merely for want of registration under the Rajasthan Public Trust Act. At the same time, since applicability of sectio....
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....68/Jodh/2026 is also set aside and the application for approval under section 80G is restored to the file of the Ld. CIT(E). After adjudicating the assessee's claim under section 12AB in terms of our directions above, the Ld. CIT(E) shall consider the application under section 80G afresh on its own statutory parameters. If the conditions prescribed under section 80G stand fulfilled, approval shall be granted in accordance with law. Needless to say, the assessee shall be afforded due and effective opportunity of hearing in both the proceedings. 18. We may clarify that the restoration should not be understood as permitting a roving enquiry into matters which were never found adverse to the assessee. The principal issue which led to rejecti....