CIT(E) Can’t Deny 12A Registration for Lack of School Affiliation | ITAT

Case Details: Lakharaji Dadima Child Care Foundation vs. Commissioner of Income-tax (Exemption) - [2025] 175 taxmann.com 264 (Delhi-Trib.)

Judiciary and Counsel Details

• Ms Madhumita Roy, Judicial Member & Naveen Chandra, Accountant Member
• Sanjay Jain, CA for the Appellant.
• Ms Rishipal Bedi, CIT, DR for the Respondent.

Facts of the Case

The assessee-trust filed an application for registration under section 12A along with Form 10A. The application was filed to regularise its provisional registration granted under section 12A.

The CIT(Exemption) rejected the application for registration on the grounds that the trust was not for charitable purposes and that the school was not registered/affiliated with any state/central authority. Aggrieved assessee preferred an appeal to the Delhi Tribunal.

ITAT Held

The Delhi Tribunal held that the question as to whether any state or central authorities affiliate the assessee has no relevance to granting registration by the Commissioner (Exemption). Once the trust is registered under section 12A, its activities’ genuineness and compliance with any statutory requirements must be questioned to decide whether it is charitable or otherwise.

The Commissioner (Exemption) has no jurisdiction to reject the application for grant of registration on the premise that the play school is not registered/affiliated with any State or Central Government authority.

Thus, having regard to the entire aspect of the matter, it is deemed fit and proper to remit the issue to the file of the Commissioner (Exemption) for adjudication of the issue of granting registration under section 12A, taking into consideration all the relevant documents in support of the case made out by the assessee, and to pass a reasoned order upon granting an opportunity to be heard to the assessee.

List of Cases Reviewed

• ITO v. Chadha Education Society Maxfort Pre-Primary School [IT Appeal No. 91/Del/2016, dated 12-12-2018][Para 7] Followed

List of Cases Referred to

• Asstt. CIT v. Surat City Gymkhana [2008] 170 Taxman 612/300 ITR 214 (SC) (para 5)
• ITO v. Chadha Education Society Maxfort Pre-Primary School [IT Appeal No. 91/Del/2016, dated 12-12-2018] (para 5).