NSDC Skill Impact Trust Vs CIT(Exemptions) (ITAT Delhi)
Summary: The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeals filed by NSDC Skill Impact Trust against the order dated 25.03.2025 passed by the Commissioner of Income Tax (Exemptions)-Delhi rejecting the application for registration under Section 12AB of the Income Tax Act, 1961.
The issue before the Tribunal was whether the learned CIT(E) was justified in denying registration under Section 12AB of the Act on the ground that the activities carried out by the assessee trust were commercial in nature and not charitable activities.
The assessee trust was established on 31.05.2022 and had obtained registration under Section 12A(1)(ac)(vi) of the Act on 12.08.2022. The assessee filed an application in Form 10AB on 20.09.2024 seeking regular registration under Section 12A(1)(ac)(iii) of the Act.
The main objects of the trust included imparting education and advancement of any other object of general public utility. The assessee explained that it was a registered trust of National Skill Development Corporation (NSDC) and acted as an approved training partner under the National Skill Development Programme of the Ministry of Skill Development and Entrepreneurship, Government of India.
The assessee submitted that its objectives were to encourage, promote and facilitate skill development, employability, entrepreneurship skills and competency development, and create mechanisms for generating awareness regarding opportunities arising from acquiring specific skills.
