New Horizon English School Vs CIT (ITAT Bangalore)
Summary: The Bangalore ITAT considered the assessee’s appeal against the order dated 30 September 2025 of the CIT(Exemptions), Bangalore, rejecting its Form 10AB application dated 29 March 2025 for registration under section 12AB read with section 12A(1)(ac)(vi)(B) of the Income-tax Act, 1961. The CIT(E) had required documents including approved building plans, building-safety certificates and fire-safety certificates, and had also questioned the trust’s identity based on the supplementary trust deed. Before the Tribunal, the assessee submitted that the school operated from rented premises and produced its trust deed, rental agreement, educational approvals, photographs and a fire-safety certificate issued by the Karnataka Fire and Emergency Services. The assessee also relied on its educational activities, which fall within “education” as a charitable purpose under section 2(15). The Tribunal agreed that fire-safety compliance is a material legal requirement for a school because it concerns the safety of children, teachers and staff, and observed that the post-1 April 2021 registration framework permits examination of compliance with other laws material for achieving the objects of a trust. It also noted that the trust deed and evidence of educational activity required examination. Rather than finally granting registration, the Tribunal directed fresh examination by the CIT(E), requiring the assessee to establish compliance with the Income-tax Act and other material laws, including fire-safety requirements and genuineness of activities, with adequate opportunity of hearing. The appeal was therefore allowed for statistical purposes.
