This is regarding a question on whether societies already registered under the Rajasthan Societies Registration Act, 1958 are also mandatorily required to be registered as public trusts under Section 17 of the Rajasthan Public Trust Act, 1959, for the purpose of renewal under Section 12A of the Income Tax Act, 1961, in light of the Hon’ble Supreme Court’s decision in New Noble Education Society (Civil Appeal No. 3795 of 2014, dated 19-10-2022).
We wish to bring to your kind attention the part of the scrutiny notice received in connection with an application under Section 12A, which states as follows:
"Whether the institution is registered under Rajasthan Public Trust Act, 1959. If not, please give explanation that why the same should not be considered as violation of section 12AB(1)(b)(i)(B) of the Income Tax Act read with sec 17 of the Rajasthan Public Trust Act, 1959 and decision of Hon’ble Apex Court in the case of New Noble Education Society Civil Appeal No. 3795 of 2014 dated 19-10-2022 and why the application filed by you should not be rejected."
In view of the above, we are seeking clarification on whether such dual registration is legally mandated, especially where the society is already duly registered under the Rajasthan Societies Registration Act, 1958, and engaged in charitable or educational activities.
We shall be grateful for guidance on this matter.
CAclubindia
