ITAT Restores Section 12AA Registration Citing Pending Application for MOA Amendment

The Income Tax Appellate Tribunal (ITAT), Delhi, gave relief to a charitable trust by restoring its application for registration under Section 12AA of the Income Tax Act, 1961, to the Commissioner of Income Tax (Exemption) for fresh consideration.

The Assessee Trust, Arya Smaj, had applied for registration under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act by filing an application in Form 10AB.

However, the same was rejected by the CIT(E) on the grounds that the assessee’s activity does not match its objective. The CIT(E) observed that the assessee trust has been running a school for many years, but its aims and objectives did not mention this. Further, it was alleged that the Trust does not qualify as charitable because it was earning huge profits. However, the Trust argued it had paid full tax on the profit earned.

During the hearing before the Income Tax Appellate Tribunal (ITAT), Delhi, the assessee society submitted that an application for amendment of the Memorandum and Bye-laws had already been filed before the competent authority on November 2, 2025, and the same is still pending.

The ITAT observed that since the MOA amendment application was still pending, the assessee should be given one more opportunity. Therefore, the Tribunal restored the matter for fresh consideration after giving the assessee an opportunity for a hearing.