HANS FOUNDATION,DELHI vs. CIT (EXEMPTION), DELHI, DELHI

PER S. RIFAUR RAHMAN, AM:

The assessee has filed appeals against the order of the learned Commissioner of Income Tax (Exemptions), Delhi [“ld. CIT(E)”, for short] even dated 26.03.2026 u/s 12AB and 80G of the Income Tax Act, 1961 (for short ‘the Act’) respectively and ITA No. 3753/Del/2026 is a lead case in this appeal.

2 ITA Nos. 3752 & 3753/Del/2026 Hans Foundation 2. The assessee filed an application for registration u/s 12A(1)(ac)(ii) of the Income Tax Act, 1961 (in short ‘the Act’) on 20.01.2026 in Form 10AB. A notice was issued along with the questionnaire dated 20.01.2026 to submit the details/documents etc. in support of the above claim of registration. After considering the reply dated 09.03.2026, the ld. CIT(E) observed that the assessee is running community school which is not affiliated from the competent authority. By relying on the decision of Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 observed that it is not falling under the category of systematic instruction, schooling or training given to the young in preparation for the work of life and that it connotes the process of training and developing the knowledge, skill, mind and character of students by normal schooling. Since the activities carried on by which assessee is not falling under the category of charitable purposes as per section 2(15) of the Act. She rejected the application filed by the assessee by relying on certain other decisions, therefore, she came to the conclusion that assessee has failed to satisfy the genuineness of the activities trying to be carried out.

“1. The Order of CIT(E) denying registration of 12A is bad in law and on facts.

3 ITA Nos. 3752 & 3753/Del/2026 Hans Foundation 2. The Ld. CIT(E) has erred in rejecting the application of the assessee ignoring the facts and the relevant material of the case and hence violated the principle of natural justice.

“1. The Order of CIT(E) denying registration of 80G is bad in law and on facts.

4 ITA Nos. 3752 & 3753/Del/2026 Hans Foundation 5. The CIT(E) has failed to appreciate that at the time of registration the CIT(E) is obliged to see only the nature of the object and genuineness of the activities of the trust. 6. The appellant craves leave to add, amend, alter, OR withdraw any ground at the time of hearing.”

5 ITA Nos. 3752 & 3753/Del/2026 Hans Foundation 7. On the other hand, the ld. ‘DR’ relied on the orders of the ld. CIT(E).

“3.7 We have gone through the facts of this case and evidences brought before us and we do not agree with either of the reasons given by the learned Director of IT for refusing the benefit of registration to the assessee trust, in view of our observations and discussion made in following paras'.

3.8 Whether pre-school would fall in the term 'education' as envisaged under s. 2(15): We have gone through the reasoning given by the learned Director of IT and we find that the view adopted by him is not only contrary to law and facts, but we also find it to be highly myopic and regressive. In today's world the 'education' has attained its unprecedented dimensions. With the advancement of technologies and evolution of multi- cultural societies, the complexities in business and real life situations have grown many folds. Under such circumstances, need for appropriate education for each and every person right from its childhood can never be over emphasized. The education has got different meaning, purpose or object for each person depending upon its position and

6 ITA Nos. 3752 & 3753/Del/2026 Hans Foundation background. We have education of various types e.g. pre-schooling, schooling, higher education, professional education, vocational training, professions training etc.

After completing the school education, students go for higher education which may be obtained through college, university or they may choose to go for a professional course even after completing the professional qualification. There are many post-qualification courses. That is to convey that 'education' may begin at any stage and it may go on throughout the life of a person. Under these circumstances, one cannot isolate 'education' given at one of the stages to say that it should not be treated as part of 'education'. The pre-schooling has become today a mandatory prelude to school education. It is like step number one in the ladder. If step number one is taken properly, then other higher steps would be achievable more efficiently and effectively. That is the purpose as has been understood by the parents who send their kids to pre-schools and it has become a mandatory requirement today for all the schools imparting quality education. It is because sending a child to pre-school is like preparing a sapling of the tree to be planted in the fields. Recently, Mumbai Bench of the Tribunal in the case of Asstt. Director of IT (Exemption) vs. Jeevan Vidya Mission (ITA No. 770/Mum/2014, dt. 30th Sept., 2015) analysed scope of the term 'Education' as envisaged by the legislature while mentioning it under s. 2(15). Observation given in the order may be useful here and therefore reproduced hereunder:

"8.1 In our considered opinion, based upon analysis of the facts of this case, the assessee trust is engaged in the field of 'education'. In our considered view, based upon our understanding of law, there is no merit in the order of AO to give a restricted meaning to the scope of meaning of term educational activities. It is not necessary that there should be holding of regular classes or wholesome educational activities to be only eligible to be called educational activities eligible for benefits under ss. 11 and 12. As per our understanding, the term 'education' is of wide scope and amplitude, especially in the context of s. 2(15). In this fast evolving society, the term 'education' has assumed greater role and significance, than ever. Education has got pivotal role in evolution of a society. Therefore, keeping this crucial aspect in mind, the legislature in its wisdom had decided to place this activity within the definition clause of the term 'charitable purpose', as per s. 2(15) of the IT Act, wherein it has been specifically mentioned that the term 'charitable purpose' includes 'education'. Thus, the very activity of education itself has been included within the meaning of the term 'charitable purpose'. It may further be seen that activity of imparting 'education' has been specifically included in the definition, thus showing that the intention of the legislature, very clearly, is to promote education, which is further fortified by the fact that when the first proviso was inserted to s. 2(15), the activity of 'education' was not covered therein and only other object of general public utility alone was covered

7 ITA Nos. 3752 & 3753/Del/2026 Hans Foundation therein. The first proviso was brought in to curtail the scope of 'charitable purpose' with respect to the activities of general public utility, by excluding the same from this definition, if it involved carrying on of any activity in the nature of trade, commerce or business. Further, even after huge litigation with respect to blanket exemption to educational institutions, when the amendment was made by the Finance Act, 2009, the activity of the education was kept outside the purview of newly inserted proviso. Thus, impliedly, it can be said that, it is clear that the legislature has given great significance to the utility of 'education' in our country."

3.9 Further, it is noted in the case of Life Shines Educational & Charitable Trust (supra) Chennai Bench of the Tribunal held that 'pre-schooling' shall fall within meaning and scope of the 'education' as used under s. 2(15). Thus, in view of the aforesaid discussion and facts of this case, we do not find any justification in the view adopted by the learned Director of IT that pre-schooling is not part of education activity. In our considered view pre-schooling is very much integral part of the term 'education' as has been envisaged under s. 2(15) of the Act and we hold so.”

Respectfully, the following above findings, in our considered view the pre schooling also falls within the meaning of imparting education therefore, we are inclined to remit this issue back to the file of the ld. CIT(E) to consider the material facts on record. In our considered view, relying on the decision of ITAT Mumbai, the assessee should be granted registration on the category of charitable activities for imparting education.

8 ITA Nos. 3752 & 3753/Del/2026 Hans Foundation 11. In the result, both the appeals filed by the assessee are allowed.

Orders are pronounced in the Open Court on 06.08.2026

Sd/- Sd/- (VIMAL KUMAR) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.08.2026 *GP/Sr.PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(E) 4. CIT 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI