INTERNATIONAL SAHAJA PUBLIC SCHOOL SOCIETY,SAHU KANGRA, HIMACHAL PRADESH vs. EXEMPTIONS WARD SOLAN, HIMACHAL PRADESH

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM 1. आयकरअपीलसं. / ITA No.1040/CHANDI/2026 & 2. आयकरअपीलसं. / ITA No.1041/CHANDI/2026 International Sahaja Public School Society CIT (Exemptions) बनाम/ Village Naddi, Talnoo, Dal Lake, Sahu, Sector 17 Vs. Kangra, Himachal Pradesh – 176216 Chandigarh - 160017 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AAATI-0596-D (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Manas Shankar Ray &Sh. Yashendra Singhwal (Advocates) – Ld. ARs ��थ�कीओरसे/Respondent by : Smt. Jaishree Sharma (CIT) - Ld. DR (Virtual) सुनवाईकीतारीख/Date of Hearing : 05-08-2026 घोषणाकीतारीख /Date of Pronouncement 10-08-2026 : आदेश / O R D E R Per Bench 1. Aggrieved by rejection of an application as filed by the assessee seeking registration u/s 12AB(1)(b) and consequential rejection of application seeking registration u/s 80G(5) vide impugned orders dated 28.02.2026 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeals before us.

of activities. In the present case, the material on record demonstrates that the applicant institution was structured and projected primarily for the benefit of a particular spiritual group and not for the public at large in the unrestricted sense as contemplated u/s 2(15) of the Act. The explanation offere does not dispel this fundamental defect. Accordingly, the registration was denied and as a consequence, the approval sought u/s 80G(5) was also denied. Aggrieved, the assessee is in further appeals before us. 5. The Ld. AR advanced arguments and submitted that the assessee was running a school and it was open for public at large as against the allegation that it was catering only to a specified group. The Ld. AR stated that this fact could be demonstrated and verified from the profile of the children who are already studying in the school. The Ld. CIT-DR justified rejection of impugned registration & approval. 6. We have heard the rival submissions and perused the material available on record. The dispute in the present appeals revolves around the rejection of the assessee's application seeking registration u/s 12AB(1)(b) of the Income-tax Act, 1961 and consequential rejection of its application seeking approval u/s 80G(5) of the Act. As it clearly emerges that the principal reason which weighed with Ld. CIT(E) in rejecting the impugned application was the perception that the assessee’s school was intended primarily for the children of "Sahaja Yogi families". To support the same, Ld. CIT(E) has relied, inter alia, upon the description appearing on the website of the school and has held that such representation indicates that the institution was

structured and projected for the benefit of a particular spiritual group rather than for the public at large. Before us, Ld. AR has seriously disputed the aforesaid factual inference. It has been submitted that the assessee is running an educational institution which is open to children from the public at large and that there is no restriction in the admission policy confining admission to children belonging to ‘Sahaja Yogi families’ as alleged. It has further been submitted that the factual position can readily be demonstrated from the profile of the students presently studying in the school and other relevant records maintained by the assessee. 7. In our considered view, the aforesaid contention of the assessee goes to the very root of the issue and, therefore, requires proper factual examination by the Ld. CIT(E). Merely on the basis of a description appearing on the website, it may not be appropriate to conclusively determine the actual character and functioning of an educational institution when the assessee has specifically disputed the inference drawn therefrom and has offered to substantiate its claim by producing the actual student profile and other relevant material. We are conscious of the fact that, while examining an application for registration, the competent authority is required to examine the objects of the applicant as well as the genuineness of its activities in accordance with the statutory requirements. Likewise, the conditions applicable to approval u/s 80G are required to be independently examined in accordance with law. The present proceedings, however, involve a disputed question of fact as to whether the school is, in fact, restricted to a particular

spiritual / community group or whether it is open to the public at large. In our considered opinion, the said factual aspect ought to be determined on the basis of the actual conduct and functioning of the institution, including its admission policy, student records, profile of students admitted during the relevant period and any other material which may establish whether admission is confined to children of ‘Sahaja Yogi families’ or is available generally without such restriction. The assessee shall also be at liberty to explain the expression "Sahaja Yogi families" appearing on its website and to place on record the relevant material concerning the manner in which the school actually functions. In other words, the impugned orders are set aside and assessee’s applications are remanded back to Ld. CIT(E) for de novo consideration in the light of our above observations and findings. The Ld. CIT(E) shall examine, inter alia, the actual admission policy and student profile of the school, the relevant records produced by the assessee, the objects contained in its Memorandum of Association and the actual nature and genuineness of its activities. The Ld. CIT(E) shall thereafter decide the applications afresh in accordance with law, after affording adequate and reasonable opportunity of hearing to the assessee.

-Sd- -Sd- (RAJESH DAMODARLAL SHARMA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 10.08.2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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