National Lubricating Grease Vs CIT (Exemption) (ITAT Delhi)
Material Facts
The assessee filed an appeal against the order dated 03.11.2025 passed by the Commissioner of Income Tax (Exemption), Chandigarh, rejecting renewal of registration under Sections 12AB/12AA of the Income Tax Act, 1961.
The assessee contended that its objects were wholly charitable and supported by its activities. It submitted that it organized conferences and seminars to impart technical education for promoting and developing lubricating greases and their applications, that any surplus was incidental and applied towards charitable activities, and that an earlier ITAT order had granted registration under similar facts. It also argued that reliance placed by the CIT(E) on the tax status of the parent body in the USA was misplaced.
The Revenue submitted that the assessee was not eligible for registration under Section 12A/12AB either under the “Education” limb or under “Advancement of any other object of general public utility” in Section 2(15). It relied upon the status of the parent organization in the USA, Supreme Court decisions concerning the scope of “education”, and the decision in Ahmedabad Urban Development Authority regarding General Public Utility (GPU). The Revenue further argued that commercial conference receipts and the nature of the activities justified rejection of registration and that the earlier ITAT order could not override subsequent Supreme Court judgments.
