SHRI RAM SHIKSHA PRASAR SAMITI,NOIDA vs. COMMISSIONER OF INCOME TAX, GHAZIABAD

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ITA 1457/DEL/2025Status: DisposedITAT Delhi21 August 2025AY 2024-254 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee's appeal was time-barred by 38 days, but condoned the delay, finding sufficient cause. The Tribunal observed that the assessee had failed to file necessary documents before the CIT(E), which led to the rejection of the application. The assessee now wished to submit these documents. Therefore, the Tribunal found it appropriate to restore the issue to the CIT(E) for a fresh decision, after providing the assessee an opportunity of being heard. The appeal was allowed for statistical purposes. The specific finding on whether the activities were charitable or not was not decided by the ITAT, as the matter was remanded.

What were the facts?

The assessee, Shri Ram Shiksha Prasar Samiti, is an appellant before the Income Tax Appellate Tribunal (ITAT), Delhi Bench. The respondent is the Commissioner of Income Tax (Exemption), Lucknow (CIT(E)). The appeal is against the order of the CIT(E) dated 29.11.2024, which rejected the assessee's application for registration under Section 12AB of the Income Tax Act. The assessee was established on 09-06-2005 for general welfare, charitable, and educational purposes, running an educational institution from Class 1 to 5 and distributing books and uniforms to the poor. The CIT(E) rejected the application, holding that the assessee's activities were not charitable in nature. The appeal was filed 38 days late, but the delay was condoned.

What were the issues?

1. Whether the learned CIT(E) was justified in not granting registration under Section 12A (or 12AB as per the facts) of the Income Tax Act, 1961, to the assessee, Shri Ram Shiksha Prasar Samiti, when its activities are for charitable, general welfare, and educational purposes. Assessee's Contention: The assessee argued that it has always existed for charitable purposes, general welfare, and educational objectives, including assisting poor and backward students with free books and uniforms. The society's creation on 09-06-2005 was for these purposes, and it should be allowed the benefits of recognition under Section 12A. The assessee also contended that the proceedings were concluded in gross violation of natural justice and that the CIT(E) was not justified in treating the school's activity as other than educational or covered under general public utility. Revenue's Contention: The Ld. DR submitted that the assessee failed to furnish the relevant documents before the Ld. CIT(E), and therefore, the application was rightly rejected.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C”, DELHI

Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL

Hearing: 21/08/2025Pronounced: 21/08/2025

Date of hearing: 21/08/2025 Date of Pronouncement: 21/08/2025 ORDER

PER SUDHIR KUMAR, JUDICIAL MEMBER:

1. This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption),Delhi [hereinafter referred to as “CIT(E)”] vide order dated 29.11.2024.

2. The assessee has raised the following grounds in appeal:-

1.

Because the "Appellant Shri Ram Shiksha Prasar Samiti has all along been existing for "Charitable purposes The Trust has been created for General Welfare, Charitable and Educational purposes. The Society is also helping the poor and Backward students by providing them free books and uniform.

2.

Because the proceedings have been concluded and order has been passed in gross violation of principles of natural justice.

3. Because the learned CIT Exemption was not justified either on facts or in law not granting the registration Under section 12A of the Income Tax Act as had been prayed for in the application submitted before him.

4. Because the Shri Ram Shiksha Prasar Samiti ever since it was created on 09-06-2005 for General Welfare, Charitable & Educational purposes as mentioned in its Byelaws and accordingly it should be allowed the benefits of recognition under section 12A by the learned CIT.

5.

The learned "CIT Exemption" was not justified treated the school engaged in activity other than educational on behalf of that the activity is not covered under the charitable purpose or under the objects of general public utility.

3.

The appeal is time barred by 38 days. We find sufficient cause not filing the appeal with in time. Therefore, we condoned the delay and admitted the appeal for adjudication.

4.

The brief facts of the case are that the Shri Ram Shiksha Prasar Samiti is running an educational institution from primary class 1 to class 5 at Bulandshahr. It was established vide Society registration No.227 dated 09-06- 2005 under the Society registration Act 1860. The society was created for general welfare, charitable & educational purposes. The society is also doing social works like distribution of books and uniforms to the poor and backward people. The main object of the society is charitable activity. After considering the documents submitted by the assessee the Ld. CIT( E) rejected the application u/s 12AB of the assessee holding that the activity of the assessee is not the charitable nature. Aggrieved the order of the Ld. CIT( E ) the assessee is in appeal before the tribunal. 4. None is present for assessee. Ld. DR submitted that the assessee has failed to furnish the relevant documents before the Ld. CIT( E) and application was rightly rejected. Perusal from the order reveals that assessee has failed to file the documents before the Ld. CIT( E) on which basis the application was rejected. Now the assessee wants to file the relevant documents before the Ld. CIT( E), therefore, we found deem fit to restore the issue before the Ld. CIT( E) to decide a fresh after giving the opportunity of being heard to the assessee. The appeal of the assessee is liable to be allowed for statistical purpose. In the result the appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open court on 21.08.2025.

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