National Skills Foundation of India Vs CIT (Exemption) (ITAT Delhi)
Delhi ITAT: At Registration Stage, CIT(E) Must Examine Objects and Genuineness of Activities-Rejection of U/s 12AB & 80G Applications Set Aside
The Delhi ITAT set aside the rejection of the National Skills Foundation of India’s applications for registration under Section 12AB and approval under Section 80G, holding that the Commissioner (Exemptions) must confine the enquiry at the registration stage to the charitable objects of the institution and the genuineness of its activities. The matter was restored to the CIT(E) for fresh consideration after granting adequate opportunity to the assessee.
The assessee-trust was established with the primary object of promoting education, skill development, vocational training and livelihood enhancement, particularly for rural and underprivileged youth. The CIT(E), relying on the Supreme Court’s decision in Noble Education Society, rejected the applications on the ground that the activities did not amount to “education” within the meaning of Section 2(15) and that the genuineness of the activities had not been established.
Before the Tribunal, the assessee contended that no adverse finding had been recorded regarding the genuineness of its activities and that, even if its activities did not strictly fall within the expression “education”, they would nevertheless qualify as “advancement of any other object of general public utility” under Section 2(15). It was further argued that, while considering registration under Section 12AB and approval under Section 80G, the CIT(E) is required only to examine the objects of the trust and the genuineness of its activities, relying upon the Chandigarh Bench decision in Institute of Model Education Society.
Accepting that the matter required a fresh examination, the Tribunal restored the proceedings to the file of the CIT(E) with a direction to reconsider the applications in the light of the decision in Institute of Model Education Society, after examining the evidence already on record and any additional material that the assessee may produce, and after affording a proper opportunity of hearing. The appeals were accordingly allowed for statistical purposes.
Cases Discussed
- Noble Education Society Vs. CIT (SC), 143 Taxmann.com 276 (SC)
- Institute of Model Education Society Vs. CIT (ITAT Chandigarh)
FULL TEXT OF THE ORDER OF ITAT DELHI
These two appeals by the assessees are directed against the order of the Ld. Commissioner of Income Tax(Exemption), New Delhi [hereinafter referred to as ‘Ld. CIT(E)] both dated 16.03.2026 passed under section 12A and 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year 2026-27.
2. The Assessees is in appeals against the orders of rejection of the applications filed in Form No. 10AB seeking registration under Section 12AB and 80G of the Act.
3. Heard the parties, perused the records.
4. The Assessee a trust charitable in nature established with the primary object of promotion of education and skill development. The activities carried on by the appellant consist of structured skill development programmes, vocational training and livelihood enhancement initiatives aimed at improving employability and empowering youth, particularly belonging to rural and underprivileged sections of society. Such objects was enunciated in the registered deed dated 21.08.2009 placed at page 41 of the paper-book filed before us. However, the activities of the appellant do not amount to “education” within the meaning of section 2(15) of the Act and further that the appellant has not been established the genuineness of its activities and, therefore, relying upon the Judgment passed by the Hon’ble Apex Court in the case of Noble Education Society Vs. CIT reported in 143 Taxmann.com276 (SC), the Ld. CIT(E) rejected both the applications.
5. It is the case of the Assessee that no adverse finding has been recorded in so far as the activities of the Assessee is concerned by the Ld. CIT(E). Further that at this stage of considering the application for registration and/or renewal and/or grant of 80G of the Act, the Ld. CIT(E) is only empowered to examine that whether the object of the Assessee is charitable, and also the genuineness of the activities. As the Appellant fulfills, both these conditions rejection is not sustainable and, therefore, liable to be quashed as was the crux of the submission made by the Ld. AR Sh. Subhash Agarwal. In this regard, the Assessee relied upon a Judgment passed by the Hon’ble Chandigarh Bench in the case of Institute of Model Education Society Vs. CIT, wherein it has been held that at this stage of grant of registration under Section 12A of the Act, the competent authority is required to examine the objects of the trust/institution and the genuineness of its activities. Since, nothing contrary to the above has been found and further that even if it does not fall within the expression ‘education’ the same is undoubtedly covered the expression, ‘advancement of any other object of general public utility’ in terms of provision of Section 2(15) of the Act as further contended by the Ld. AR. Thus, the order impugned is bad in law and to be set aside as submitted by him. The relevant documents in support of the case made out by the Appellant though furnished before the authority below, the same were also not considered in its proper perspective as further argued. The contention made by the Ld. AR, however, has not been able to be controverted in its proper spirit by the Ld. DR.
5. Thus, having heard the Ld. Counsels appearing for the parties and having regard to the facts and circumstances of the case, in order to prevent the miscarriage of justice, we would like to give a further reasonable opportunity to the Appellant to represent its case before the Ld. CIT(E) effectively. Thus, we dispose of these appeals by remitting the issues to the file of the Ld. CIT(E) for proper consideration of the same in the light of the Judgment passed by the Hon’ble Chandigarh Bench in the case of Institute of Model Education Society Vs. CIT (supra) and to pass orders strictly in accordance with law upon granting an opportunity of being heard to the Appellant and upon considering the evidence on record or any other evidence which the Appellant may choose to file at the time of hearing of the matters.
6. In the result, both the Appeals are allowed for statistical purposes.
Order pronounced in the open court on 06/08/2026.
