Rainbow Social & Educational Trust Vs CIT (Exemption) (ITAT Delhi)
Running a School Itself Is ‘Education’: ITAT Follows Delhi Music Society, Remands 12A Application- Primary School Need Not Be CBSE/DOE-Affiliated for 12A: ITAT Delhi Sets Aside CIT(E)’s Rejection
Assessee-trust was formed on 08.03.2022 & obtained provisional registration u/s 12A vide CPC order dated 12.05.2022. On 26.06.2024 it applied in Form 10AB for regular registration u/s 12A(1)(ac)(iii). Trust’s stated objects are relief to poor & education. During proceedings, CIT(E) issued questionnaires & received replies.
CIT(E) observed that the Trust runs a primary school Bright Pathways Global School at E-105, Shaheen Bagh, offering classes up to VI. CIT(E) rejected the registration on the ground that the school lacked approval/affiliation from Directorate of Education, Delhi or CBSE, holding that only institutions recognised by State/Central Boards qualify for exemption under “education”.
Assessee appealed, arguing that no statutory requirement mandates government affiliation for eligibility u/s 12A & that “education” under the Act covers running a school imparting systematic instruction, irrespective of board recognition. Reliance was placed on Delhi High Court in Delhi Music Society (357 ITR 265) which held:
- imparting structured learning—regular classes, attendance, discipline, timetable—is “education”;
- affiliation to any university/board is not a pre-condition;
- absence of degree-granting power is irrelevant.
Tribunal observed that the issue is squarely covered by Delhi Music Society (Delhi HC), which held that lack of Government/Board recognition is not a valid ground for denial of exemption. Based on this binding precedent, CIT(E)’s reasoning was held erroneous.
