Garve Saint Marys Education Society Vs CIT [exemption] (ITAT Bangalore)
No Building Approval, No 12AB-Yet ITAT Grants Fresh Chance Due to Short Compliance Window
The trust running a school was denied registration under section 12AB and consequential approval under section 80G due to failure to furnish crucial documents such as approved building plan and safety certificates, which are essential for lawful educational operations.
The ITAT acknowledged that:
- Compliance with municipal laws, building approvals, and safety norms is fundamental for educational institutions
- Without such compliance, genuineness of charitable activities cannot be accepted
However, the Tribunal also noted a key procedural issue:
- The assessee was given only 10 days to furnish documents, which was insufficient
- The trust claimed that it was compliant but could not produce documents within such a short timeframe
Balancing both aspects, the ITAT:
- Restored the matter to CIT(E) for fresh adjudication
- Directed the assessee to submit all approvals and safety documents within 120 days
- Clarified that 80G approval depends on 12AB registration outcome
The appeals were thus allowed for statistical purposes, emphasizing that while legal compliance is mandatory, adequate opportunity must also be provided.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. ITA number 2772 Bangalore 2025 is filed by the Appellant against the order passed by the CIT exemption Bangalore in form number 10 AD being order for registration or approval or rejection or cancellation of application made by Appellant in form number 10 AB dated 25th February 2025 for seeking registration under section 12 AB of the act, rejected.
