Extensive Charitable Activities shield educational society from denial of exemption and retrospective cancellation of registration

Jamia Osman Bin Affan Education Society Vs ITO (ITAT Hyderabad) Conlcusion: When an educational society was found to be substantially engaged in genuine charitable activities, its exemption could not be denied under Section 13(1)(b) simply because a few specific expenditures happened to benefit individuals from a particular religious community. AO’s additions were ordered to be deleted. Since, the primary assessment order alleging religious fund diversion was overturned, the fundamental basis for cancelling the trust’s registration no longer survived. The Commissioner’s retrospective can...