AUSTIN EDUCATIONAL SOCIETY,JODHPUR vs. CIT, EXEMPTION JAIPUR, JAIPUR

ITA 609/JODH/2026Status: DisposedITAT Jodhpur11 August 2026AY 2026-2715 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the objection regarding lack of registration was no longer valid as the assessee had obtained the required registration. It further held that the mere generation of surplus or construction on trustees' land does not, by itself, indicate a profit motive or diversion of funds.

What were the facts?

The assessee, an educational society, applied for approval under Section 10(23C)(vi) of the Income-tax Act. The application was rejected by the CIT(E) primarily due to lack of registration under the Rajasthan Public Trust Act, construction on land owned by trustees, and generation of substantial surplus.

What were the issues?

Whether the generation of surplus and construction on trustees' land are sufficient grounds to deny approval under Section 10(23C)(vi) without proof of profit motive or diversion of funds.

Which sections of the Income-tax Act were involved?

Section 10(23C)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Respondent: DR (Physical)

PER BENCH: The present appeal has been filed by the assessee against the order dated 18.03.2026 passed by the Ld. Commissioner of Income Tax (Exemptions), Jaipur [“Ld. CIT(E)”], whereby the assessee’s application seeking approval under section 10(23C)(vi) of the Income-tax Act, 1961 has been rejected.

2.

The material facts giving rise to the present appeal are that the assessee is an educational society engaged solely in imparting education and carrying on educational activities in accordance with its stated objects. The assessee had 2 Asst. Year: 2026-27 applied for approval under section 10(23C)(vi) of the Act, which was initially rejected by the Ld. CIT(E) vide order dated 31.03.2024, principally on the grounds that

The order continues below.

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