Sir P. T. Sarvajanik College of Science Alumni Association Vs CIT (Exemption) (ITAT Surat)
The case concerns two appeals filed by an alumni association against orders passed by the Commissioner of Income-tax (Exemption), Ahmedabad, dated 27.06.2024 and 28.06.2024. Through these orders, the Commissioner rejected the association’s application for regular registration under Section 12A(1)(ac)(iii) of the Income-tax Act, cancelled its provisional registration, and also rejected its application for approval under Section 80G(5) of the Act.
The assessee had earlier been granted provisional registration in Form 10AC on 07.03.2023 for the period from Assessment Year 2023–24 to 2025–26. Pursuant to this, the assessee applied for regular registration in Form 10AB. During the proceedings, the Commissioner issued multiple notices seeking details and documents. After examining the Memorandum of Association, the Commissioner concluded that certain objects of the association were intended to benefit only past and present students of a particular college and the members of the association. A show cause notice was issued on the ground that the objects were not for the benefit of the public at large.
In response, the assessee explained that its principal aims were to improve social, economic, cultural, and moral life and to work for the upliftment of the general public without discrimination. It emphasized that its activities included support for education, relief to the poor, and other charitable purposes. Despite these submissions, the Commissioner rejected the explanation. He held that some objects were confined to members only, lacked altruistic character, and were more in the nature of welfare services to members rather than activities for general public utility. Relying on judicial precedent, he rejected the application for registration under Section 12A, cancelled the provisional registration, and consequently rejected the application under Section 80G on the ground that valid registration under Section 12A is a prerequisite.
