Prerana Samajik Sanskrutik Vs CIT (ITAT Nagpur)
The Income Tax Appellate Tribunal (ITAT), Nagpur Bench, has set aside an order by the Commissioner of Income Tax (Exemptions), Pune (CIT(E)), which had rejected the final registration and cancelled the provisional registration of Prerana Samajik Sanskrutik, a trust dedicated to education in the Naxal-affected Gadchiroli District. The Tribunal’s ruling, issued on July 9, 2024, concluded that the CIT(E)’s concerns regarding the trust’s genuineness and compliance were unfounded.
The case centered on the appeal filed by Prerana Samajik Sanskrutik against the CIT(E)’s order dated September 23, 2023. The trust had sought final registration under Section 12AB read with Clause (iii) of Section 12A(1)(ac) of the Income Tax Act, 1961, after having been provisionally registered earlier.
Background of the Trust
Prerana Samajik Sanskrutik is a trust registered under the Maharashtra Public Trust Act, 1950. Its stated objective is to provide quality education to economically disadvantaged, tribal, Scheduled Caste, and Scheduled Tribe populations without discrimination in the remote Gadchiroli District of Maharashtra. The trust operates two educational institutions: Kisan Vidyalaya in Wadadha and Dr. Babasaheb Ambedkar School & Junior College in Armori. These institutions primarily cater to tribal children and receive significant grant-in-aid from the Government of Maharashtra for staff salaries and operational expenses.
