National Skills Foundation of India Vs CIT (Exemption) (ITAT Delhi)
Delhi ITAT: At Registration Stage, CIT(E) Must Examine Objects and Genuineness of Activities-Rejection of U/s 12AB & 80G Applications Set Aside
The Delhi ITAT set aside the rejection of the National Skills Foundation of India’s applications for registration under Section 12AB and approval under Section 80G, holding that the Commissioner (Exemptions) must confine the enquiry at the registration stage to the charitable objects of the institution and the genuineness of its activities. The matter was restored to the CIT(E) for fresh consideration after granting adequate opportunity to the assessee.
The assessee-trust was established with the primary object of promoting education, skill development, vocational training and livelihood enhancement, particularly for rural and underprivileged youth. The CIT(E), relying on the Supreme Court’s decision in Noble Education Society, rejected the applications on the ground that the activities did not amount to “education” within the meaning of Section 2(15) and that the genuineness of the activities had not been established.
Before the Tribunal, the assessee contended that no adverse finding had been recorded regarding the genuineness of its activities and that, even if its activities did not strictly fall within the expression “education”, they would nevertheless qualify as “advancement of any other object of general public utility” under Section 2(15). It was further argued that, while considering registration under Section 12AB and approval under Section 80G, the CIT(E) is required only to examine the objects of the trust and the genuineness of its activities, relying upon the Chandigarh Bench decision in Institute of Model Education Society.
Accepting that the matter required a fresh examination, the Tribunal restored the proceedings to the file of the CIT(E) with a direction to reconsider the applications in the light of the decision in Institute of Model Education Society, after examining the evidence already on record and any additional material that the assessee may produce, and after affording a proper opportunity of hearing. The appeals were accordingly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
These two appeals by the assessees are directed against the order of the Ld. Commissioner of Income Tax(Exemption), New Delhi [hereinafter referred to as ‘Ld. CIT(E)] both dated 16.03.2026 passed under section 12A and 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year 2026-27.
