The ITAT Chandigarh in a recent judgement has ruled that Resident Welfare Associations (RWA) can’t obtain charitable trust registration as the services provided by RWAs are contractual and reciprocal. This judgement came following a case filed by a RWA from Sector 28, Gurgaon (Haryana) which sought the charitable trust registration, but was denied by the Income Tax Department.
ITAT Chandigarh said that the concept of charity inherently presupposes an element of public benefit.