ANANT SHEKSHNIK SANSTHAN,JABALPUR vs. CIT EXEMPTION BHOPAL, BHOPAL

ITA 732/IND/2026Status: DisposedITAT Indore17 September 202611 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the Ld. CIT(E) was not entirely justified in rejecting the application solely based on the nursing college's lack of current affiliation, especially when the society was running a school. The Tribunal observed that while the nursing college's lack of current affiliation made the order 'not proper or irregular' concerning that activity, the school 'Anant Anandalaya' was being run for charitable purposes, though a detailed inquiry was warranted. The Tribunal decided to set aside the impugned order and remand the case back to the Ld. CIT(E) for a de novo examination. The Ld. CIT(E) is directed to give an opportunity of personal hearing to the assessee to explain the entire issue, particularly regarding the nursing college's operational period until closure and the school's activities. The assessee is also directed to produce all necessary papers regarding the nursing college's operational activities until closure. The Tribunal left undecided the specific period for which the nursing college was operational, as it was not explained.

What were the facts?

The assessee, Anant Shekshnik Sansthan, a registered society since 2008 involved in charitable works, filed an application in Form 10AB for registration under sections 12AB and 80G of the Income Tax Act, 1961. The assessee claimed to run a nursing college and a school, 'Anant Anandalaya', for charitable objects. The Commissioner of Income Tax (Exemption) rejected the application, citing non-furnishing of legible audited financials for the last 3 years, current affiliation/approval letters for the school/college, and prior 80G approval. The assessee submitted that the nursing college was closed and the school was operational, providing financial statements for the year ending March 31, 2024. The CIT(E) noted the lack of current affiliation for the nursing college and rejected the application.

What were the issues?

1. Whether the Ld. CIT(E) was justified in rejecting the application for registration under Section 12AB and 80G solely on the ground of the nursing college lacking current affiliation, despite the society running other charitable activities like a school? 2. Whether the affiliation certificate for the Nursing College is a prerequisite for registration under Section 12AB, or does it only affect approval under Section 80G? Assessee's Contentions: - The impugned order is bad in law and illegal. The rejection of registration merely for want of an affiliation certificate for the Nursing College is erroneous and affects other charitable activities. - The affiliation certificate may be relevant for Section 80G approval but cannot affect registration under Section 12AB. - The nursing college is now closed, and the school 'Anant Anandalaya' is operational, for which no fee is charged and expenses are met through donations. - No opportunity of personal hearing was given before the impugned order was passed. Revenue's Contentions: - There is no current affiliation certificate for the nursing college, meaning no degree/diploma can be awarded. - No trust deed is on record. - The financial records provided are only income and expenditure accounts for the year ending March 31, 2024, with major expenses for the now-closed nursing college. - The impugned order should be upheld.

Which sections of the Income-tax Act were involved?

Section 253,Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI PARESH M JOSHI

For Respondent: Shri Anup Singh, CIT DR
Hearing: 01.09.2026Pronounced: 17.09.2026

Per Paresh M Joshi, J.M:

This is an appeal filed by the Assessee under section 253 of the income tax Act 1961,[ hereinafter referred to as the Act for the sake of brevity] before this tribunal, as & by way of an appeal .The Assessee is aggrieved by the order bearing No:-ITBA/EXM/F/EXM45/2025-26/1 087724821 (1) 22.03.2026 passed by the Ld. CIT(E) whereby the assessee

application in form 10AB for the registration u/s 12AB and 80G of the Act was rejected.

dated

ANANT SHEKSHNIK SANSTHAN ITA No. 732/Ind/2026 - A.Y. NA

2.

Factual Matrix

2.

1 The brief facts of the case are that the assessee “Anant Shekshnik Sansthan Jabalpur” is a registered society since 2008. The

The order continues below.

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