Agastya Gurukulam Public Charitable Trust Vs CIT (Exemptions) (ITAT Chennai)
Tribunal Upholds Narrow Meaning of Education -Alternative Schooling Not Education u/s 2(15)- ITAT Chennai: Gurukulam’s– 12AB 80G Denied
Assessee-trust filed applications in Form 10AB on 17.06.2024 seeking registration u/s 12AB & approval u/s 80G. CIT(E), Chennai rejected both applications on 30.12.2024, holding that the Trust’s activities were not genuine charitable activities within the meaning of Sec. 2(15).
Findings of CIT(E):
- Assessee claimed objects of “relief of the poor” & “education”, but no part of income was applied to charity; fees collected were spent on salaries, camps, consultancy & rent.
- Activities did not amount to “education” as defined narrowly in SC in Sole Trustee, Loka Shikshana Trust (101 ITR 234) & reaffirmed in SC in New Noble Educational Society (143 taxmann.com 276).
- Trust was conducting alternative home-school/Gurukulam system without recognition from CBSE/State Board at the relevant time.
- No scholarships/concessions were given in FY ending 31.03.2024, indicating profit motive.
Assessee’s Arguments:
- Recognition was obtained from NIOS on 26.11.2024; syllabus aligned with NCERT.
- Educational activity included systematic instruction in languages, maths & sciences along with traditional Indian knowledge subjects.
- Past financials showed donations applied to education & charity, and scholarships were provided in earlier years.
- CIT(E) erred in treating “education” too narrowly & ignoring accreditation by NIOS.
Tribunal’s Ruling:
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