TaxTMI 
TaxTMI 
2026 (9) TMI 1156
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....eking renewal/continuation of registration under section 12A/12AB of the Income-tax Act, 1961 has been rejected. 2. The principal reasons assigned by the Ld. CIT(E) for rejecting the application are that the application filed in Form No. 10AB was incomplete and that the assessee had not furnished registration under the Rajasthan Public Trust Act, 1959. The Ld. CIT(E), while referring to section 12AB(1)(b)(i), has observed that compliance with the requirements of any other law which are material for achieving the objects of the trust or institution is also required to be examined and, since according to him the assessee had not established its registration under the Rajasthan Public Trust Act, the application was liable to be rejected. ....
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....the said Act, subject to such conditions as may be prescribed. Thus, the Act itself recognises a category of public trusts administered by agencies acting under the control of the State Government or by local authorities to which its provisions do not apply. 5. In the present case, the nature and legal character of the assessee assumes significance. The assessee is not an ordinary private trust which has simply omitted to obtain registration under the Rajasthan Public Trust Act. It is an Urban Improvement Trust constituted under the statutory framework of the State of Rajasthan and functioning as an agency concerned with urban improvement and development. Therefore, before drawing an adverse inference on account of nonregistration under ....
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....ot an application by an institution whose charitable character and objects are being examined for the first time. 7. The aforesaid antecedent registrations are relevant because the legal character, constitution and principal objects of the assessee were already before the Department when registration was originally granted and again when it was continued under the new regime. Of course, renewal under section 12AB is not an automatic exercise and the Ld. CIT(E) is entitled to examine the matters which the statute requires him to examine, including genuineness of activities and compliance with such other laws as are material for achieving the objects of the institution. However, where registration has subsisted over the years, rejection at....