RKKR SHIKSHA FOUNDATION,HARYANA vs. DEPUTY COMMISSIONER OF INCOME TAX , FARIDABAD,HARYANA

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”, NEW DELHI SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 8622/Del/2025, A.Y. 2026-27 RKKR Shiksha Foundation Vs. Deputy Commissioner of Plot No. 70, Village Income Tax, Wazirabad, Exemptions Ward, Gurgaon Faridabad, Haryana, Faridabad �थायीलेखासं./जीआइआरसं./PAN/GIR No: AACCI0734J Appellant .. Respondent

Appellant by : Sh. Gaurav Gupta, CA Respondent by : Shri Sher Singh, CIT(DR) Date of Hearing 30.06.2026 Date of Pronouncement 22.07.2026

O R D E R PER VIMAL KUMAR, JM: The appeal filed by the assessee is directed against the order dated 10.12.2025 of the Commissioner of Income Tax (Exemption), Chandigarh [hereinafter referred to as “the CIT(E)”] under section 12A(1)(ac)(ii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Y.2026-27.

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under section 11 of the Act, subject to fulfillment of prescribed conditions. The Appellant is an old charitable entity and is in a preparatory and consolidation stage with a clear intention to undertake charitable and educational activities in future. 7. That the Learned CIT(E) travelled beyond the scope of section 12AB by relying on alleged historical disputes and assumptions unrelated to the Appellant's present application, without establishing any violation of sections 11, 12 or 13 of the Act. 8. That the reliance placed by the Learned CIT(E) on judicial precedents such as New Noble Educational Society is misplaced, as the Appellant had demonstrated genuine charitable intent and application of funds through donations for educational purposes. 9. That the impugned order is violative of the principles of natural justice, being based on conjectures, suspicion and extraneous considerations rather than objective examination of the Appellant's case. 10. That the Appellant craves leave to add, amend or alter any of the above grounds at the time of hearing.” 4. Ld. Authorized Representative for appellant/assessee submitted that Ld. CIT(E) erred in rejecting application u/s 12AB, despite the appellant/assessee having genuine and charitable objects of promotion of education. Ld. CIT(E) erred in questioning the genuineness of the Appellant's activities by drawing adverse inferences merely on account of inter-charitable donations, without any finding that the funds were misutilized or diverted for non-charitable purposes. Ld. CIT(E) erred in law in rejecting the application on the ground that the Appeliant did not carry out substantial direct charitable activities during the relevant period, ignoring the fact that donation to a charitable institution duly registered under section 12A, which utilizes the funds for educational purposes,

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constitutes a valid and genuine charitable activity and application of income. At the stage of grant of registration under section 12AB, the authority is required to examine only the charitable nature of objects and the genuineness of activities, and not the adequacy, quantum or scale of activities. Ld. CIT(E) erred in treating accumulation of reserves and surplus as a ground for rejection, whereas accumulation of income is expressly permitted under section 11 of the Act, subject to fulfillment of prescribed conditions. The Appellant is an old charitable entity and is in a preparatory and consolidation stage with a clear intention to undertake charitable and educational activities in future. 5. Ld. Departmental Representative relied on impugned order. 6. From examination of record in light of aforesaid rival contention, it is crystal clear that Ld. CIT(E) vide order dated 10.12.2025 had rejected application u/s 12AB for lack of activities. Ld. CIT(E) by referring to submissions and documents found that the assessee was represented by common trustees / office bearers and there was Circular donations lacking demonstrable charitable purpose and instead indicate layering and routing of funds to artificially inflate application of income. In absence of any evidence to the contrary, the grounds of appeal, being devoid of merit, are untenable.

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Sd/- Sd/- (RAMIT KOCHAR) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 22.07.2026 Binita, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI